Consumer complaint received 2025-05-09 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Can't temporarily delay making payments
Company: MOHELA
State: AR

Complaint narrative:
I submitted my annual recertification for XXXX on XX/XX/XXXX via Studentaid.gov. Received by Mohela on XXXX XXXX. I have never been on SAVE. I have been on IBR since XXXX. 

I was put into a processing forbearance for XXXX and XXXX. When the forbearance expired on XX/XX/XXXX, I called to request a general forbearance because my IBR plan has not been processed yet.

After five phone calls, three emails, and two complaints to Mohela, I can't figure out whether I have a pending forbearance request or what my next best move is. 

On XX/XX/XXXX, the first customer service rep confirmed that I had placed a request for forbearance. She also confirmed the date : XX/XX/XXXX. 

On XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX, I asked for a status update via the secure message platform on my Mohela account. Mohela confirmed the receipt of the forbearance request each time, but provided no additional information. 

I called on XX/XX/XXXX for more info. Suddenly, they could find no record of any forbearance request in XXXX. Just the previous day, Mohela confirmed receipt in writing. I pushed the reluctant advanced agent for more information and to doublecheck. She said mysteriously that she found a forbearance request for XX/XX/XXXX but nothing for XX/XX/XXXX. 

Then, she said she would expedite the XX/XX/XXXX request and said it would process in 10 business days. I don't understand how an expedited request for which I had at the time already been waiting for 17 business days has an estimated timeframe for processing that is the same as the standard timeframe. That sounds like they put in a new request on XX/XX/XXXX. When it takes longer than XXXX business days to process, I suspect that they will tell me that my forbearance request is dated not XX/XX/XXXX, not XX/XX/XXXX, but XX/XX/XXXX. 

The advanced agent from XX/XX/XXXX also said that there has been no movement on and no review of my IBR recert. No one has touched it. 

I called again on XX/XX/XXXX to see if the XX/XX/XXXX forbearance request was received. The advanced agent working with a supervisor said there is no forbearance request for the month of XXXX. They offered instead to put XXXX in for XX/XX/XXXX. I asked what good that would do since none of my requests have gone through. As of XX/XX/XXXX, I had made a specific request for a forbearance on XX/XX/XXXX via phone, on XX/XX/XXXX via secure message, technically on XX/XX/XXXX as either a new request was made or an old one was expediated slowly, on XX/XX/XXXX via the XXXX  and XX/XX/XXXX via a complaint secure message. 

On XX/XX/XXXX, the advanced agent assisted by a supervisor failed to provide clarification as to how I was repeatedly reassured, three times in writing and at least once over the phone, that my forbearance request had been received and only awaited processing. But somehow, on XX/XX/XXXX, there was no record of a forbearance request. The advanced agent said that she could see that there is a request for my IBR recert to be reprocessed but she did not explain what that meant and would not provide a date for the request. I do not understand how my IBR recert can be reprocessed when, on XX/XX/XXXX, I was told no one has even looked at my recert app. 

I finally got through to the resolution dept at Mohela on Monday, XX/XX/XXXX. At first, the resolutions dept rep said she also could not see any of these forbearance requests. But when I pushed her, she did something that revealed to her that I have open forbearance requests for XX/XX/XXXX and XX/XX/XXXX as well as an escalation request from XX/XX/XXXX. She put in a second escalation request and an email to management. 

But she also said that my only option is to monitor my account. She said that she could provide no estimated timeframe for resolution. That the general timeframe is 90 business days but it could be even longer. And I said : Well, in 90 calendar days, you all will destroy my credit score which right now is in the upper XXXX because I have never paid late ever in my life. Ever. Ninety business days is much longer than 90 calendar days. Mohela is telling me that there is a possibility, which looks more and more likely, that there is literally nothing I can do except pay on a standard repayment plan to preserve my credit worthiness and my reputation. Even though this delay in processing my IBR recert is not my fault, and that standard repayment is so out of proportion with what I make as a public servant that it will destroy my familys financial security. What do I choose, my credit score and reputation or my immediate-term financial stability? She said : I'm sorry. 

My payment was due XX/XX/XXXX. I am now delinquent for the first time ever in my life. That delinquent payment is 12 times what I pay on IBR. I can not afford it without using my emergency fund. I definitely can not afford it for as long as it will take Mohela to process my IBR application. This can not continue because it will destroy completely my family 's financial security. I have XXXX children under the age of XXXX. I am the primary earner in my family. 

Notably, 34 CFR 685.205 was recently interpreted by the Dept of Ed to require servicers to apply a general forbearance to ALL IDR applications that take longer than 60 days to process. This was in a court filing entitled NOTICE re : Corrected Declaration of Acting Under Secretary of Education XXXX XXXX submitted by XXXX XXXX, XXXX Department of Education in AFT v. Dept of Ed, XXXX, in the XXXX XXXX XXXX for XXXX District of Columbia. This case was filed on XX/XX/XXXX. The relevant court filing was filed on XX/XX/XXXX and is listed as XXXX XXXX on the docket sheet. I also provided a copy of this court filing to Mohela via my Mohela account. There is no wiggle room in this statement from the Dept of Ed : " 20. Once borrowers apply for any IDR plan, they will be placed in a processing forbearance under 34 CFR 685.205 ( b ) ( 9 ) for up to 60 days, or until the processing of their application is complete, whichever is earlier. Any applications that are pending for over 60 days will be moved into the general administrative forbearance under 34 CFR 685.205 ( b ). ''

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation