Consumer complaint received 2024-11-27 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: MOHELA
State: FL

Complaint narrative:
MOHELA refuses to provide any assistance with incorrect consolidation loan APR, which changed from 6.84 % before consolidation of one loan account to 6.875 % post consolidation. 
MOHELA has consistently provided no assistance in processing the income based repayment plan application that was submitted with the loan consolidation application on XX/XX/XXXX, with self certification of income and dependents. Federal Student Aid dashboard showing IDR Plan application was completed by servicer ( MOHELA ) on XX/XX/XXXX. 
XXXX : Federal Direct Consolidation Loan Application and Income-Driven Repayment ( IDR ) Plan Request Application, with Income Self-Certification, submitted via studentaid.gov XXXX : Received email notification that IDR request could not be approved, with denial reason ( s ) stating that no income verification documentation was received. 
XXXX, XXXXXXXX XXXX : Called MOHELA Customer Service regarding IDR denial when self-certification was provided with application. Representative stated that no help is available due to account being transitioned to new account management platform, which may take 2-4 weeks to complete. 
XXXX : Called MOHELA Customer Service regarding incorrect APR on account and IDR still showing as Processing, and the account now showing as Past Due. Representative stated that MOHELA can not help with any incorrect information on the account and refused to provide other steps that can be taken to verify and correct the incorrect APR on the account. Representative stated that the IDR Application was denied due to no income verification being received. I explained that income self-certification was provided with the application. She stated that self-certification has now ended was unable to provide any information on why the IDR Application has still not been processed and when asking to speak with a supervisor the representative hung up the call. Called MOHELA Customer Service again. Representative stated that she is unsure why the IDR application was denied based on missing income verification because she is able to see the self-certification with the application. She stated that she will re-submit the previous IDR Application with the original income verification self-certification, and that she will place the account into forbearance until XX/XX/XXXX to ensure enough time is available to process the application. 
XXXX, XXXXXXXX XXXX : Called MOHELA Customer Service regarding IDR application still not processed and the account showing two months past due. Representative stated that IDR was still processing and would not be completed as all account applications have been placed on hold at this time. Representative was unable to provide any information as to by the IDR Application has still not been processed correctly since receiving the application on XX/XX/XXXX. She first stated that it could take up to 60 days to process the application but then later in call changed the timeframe to 90 days when I explained it has been much longer than 60 days. She then refused to place the account into deferment or forbearance while awaiting for the IDR application to resume processing. 
XXXX, XXXXXXXX XXXX : Called MOHELA Customer Service regarding the account showing past due for three months and the IDR Application still not processed. Representative stated that she will place the account into forbearance until XX/XX/XXXX to bring the account current and provide time for the IDR Application to process successfully. 
XXXX : Reviewed the MOHELA online account dashboard, which is showing the current payment of XXXX due on XX/XX/XXXX, on a Level repayment plan, and IDR Application has still not been processed. 
XXXX : MOHELA online account dashboard is showing past due, with the IDR Application still not processed, payment plan of level, incorrect APR of 6.875 %, balance of XXXX

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