Consumer complaint received 2025-06-11 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with your payment plan
Company: MOHELA
State: WI

Complaint narrative:
In XXXX of XXXX, my account was placed in forbearance due to the XXXX litigation. When the administration announced that borrowers who wished to continue making payments could apply to switch to a different repayment plan in XX/XX/XXXX, I filled out an application to be moved to the Pay As You Earn ( XXXX ) repayment plan. I was notified that this application was approved on XX/XX/XXXX. ( See attached ) Because I am pursuing XXXX, I am eager to return to making payments as soon as possible so I can continue to make progress toward the forgiveness benefit. As I will illustrate in the timeline of events below, XXXX inability or refusal to remove this erroneous forbearance from my account has been preventing me from making these payments. 

I currently have made 111 of the 120 required payments, and would have completed my 120 payments in XX/XX/XXXX if not for the XXXX forbearance. Although I am aware of and have applied for the XXXX buyback program, it is my understanding that buyback applications take an incredibly long time to process, and it may well be faster to continue making payments instead. 

Timeline of events. Notes taken contemporaneously. 
XX/XX/XXXX I logged into my Mohela account and noticed that no payment is due for XX/XX/XXXX, when that should have been my first payment under XXXX. See XX/XX/XXXX letter from Mohela. 

XX/XX/XXXX I logged into my Mohela account to find that my loans are unexpectedly in a new forbearance ending XX/XX/XXXX, despite being on XXXX As XXXX XXXX ( XXXX ) repayment plan. I did not request this forbearance and do not want to be on it. ( See attached screenshot ) I called Mohela at XXXX ( 8 minute call ) to request forbearance removal. Selected callback option, was quoted an hour and 5 minute wait. 

I received a callback around XXXX. The representative told me the XXXX forbearance had been replaced on XX/XX/XXXX. ( The processing forbearance associated with my XXXX application had ended on XXXX ). I was unable to learn more as she left the line abruptly mid-sentence, though the call was not disconnected. I waited for 5 minutes to see if she would return, occasionally asking if anyone was there, but she did not respond or return. 

I hung up and called back, and was told the wait to speak with a representative was now 1 hour and 55 minutes. The automated system tells me my next payment due is XX/XX/XXXX. The wait time was updated to 2 hours and 40 minutes. 

I received a callback at XXXX. The representative understood the issue and told me she would put in a request to remove it. She said it would take 5-10 business days. I asked if that meant I would not be able to make a payment in XXXX, since the change would not take effect 21 days before the payment due date. She was not sure. 

Various dates in XX/XX/XXXX I checked my account intermittently and no changes were made to the account. After the XXXX payment date ( XX/XX/XXXX ) passed, the next due date populated ( XX/XX/XXXX ), again with no payment due. ( See attached screenshot ) XX/XX/XXXX Rather than wait on hold for several hours again, I decided to use Mohelas messaging option available through their website. I sent the following message while logged in to my Mohela account. ( See attached screenshot ) XX/XX/XXXX I was not notified of a response to my message, but when I logged into my account to check for any updates, I found the below response from Mohela directing me to call them. I was very disappointed, as it seems the messaging option is not a viable alternative to waiting on hold for hours. ( See attached screenshot ) At this point, I do not have faith that Mohela is willing or able to address this issue. Anecdotally, I have heard from several others who have had this issue and been similarly unable to resolve it. Because of this, and the time I have already spent on the issue, I am requesting assistance from your office. I would like the forbearance to be removed immediately so that I can start making payments again and those payments will count towards my progress on XXXX.

Company response to consumer: Closed with explanation