Consumer complaint received 2025-02-19 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA
State: SC

Complaint narrative:
Thank you for taking the time to review my case. I hope that you are able to take the time to review my full statement and provide any feedback that you are able.

The following summary will detail how, as my current student loan servicer, MOHELA is out of compliance and thus failing to uphold the IDR payment plan between borrower and lender. MOHELA has demonstrated persistent and undue neglect of the relevant protocol and procedures of my IDR plan, PSLF progress, availability and facilitation of communication, and overall attention to detail when attempting to resolve this issue. This has resulted in a pattern of unmet obligations by MOHELA that are directly impeding my progress to make qualifying payments and gain credit towards PSLF.

I have been with the loan servicer, MOHELA, since my student loans were transferred to them around XX/XX/XXXX. I have been making payments under my income-driven repayment plan called " XXXX '' ( pay as you earn ) since XXXX. I have been documenting my full-time employment each year as a XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX towards public service loan forgiveness ( PSLF ). 

This was going very well until XX/XX/XXXX ( last Fall ). I received correspondence from MOHELA that they were placing my loans into forbearance. This was being done, they said, because I am a borrower under the " SAVE '' plan or have an outstanding IDR application. Neither of those are true. This is confirmed by my federal student aid account on the Federal Student Aid ( FSA ) website as well as my verbal conversations held with Loan Management at FSA.

I am reaching out for further assistance because this issue has been resolved twice and now it has happened again for a fourth time. It is also becoming increasingly difficult to get in contact with my loan servicer in any form of communication. When dealing with time sensitive issues that directly relate to my good faith efforts to make progress towards fulfilling my part of the loan contract, not receiving clear, consistent, timely communication and loan management is very concerning. I do not feel that MOHELA is upholding their part of our contract due to the fact that they create undue difficulty in accurately managing my loan account which is directly impeding my ability to successfully make qualifying payments. 

For more background information, I am a borrower under the XXXX plan and that plan was renewed this past summer of XXXX. I had looked into the new SAVE plan while reapplying for my XXXX plan and did submit an application for the SAVE plan. I was concerned there was confusion about my plan due to multiple applications, but things appeared to be okay due to the fact that my account was currently posting payments under my correct payment plan through XX/XX/XXXX. 

However, on XX/XX/XXXX, I received correspondence from MOHELA, dated XX/XX/XXXX, that my loan accounts were placed into forbearance due to me being enrolled in or having a pending application for the SAVE plan or not having renewed my IDR plan. Since I had been making payments on my current IDR plan through XX/XX/XXXX, I concluded this must be a mistake. 

I emailed MOHELA to request immediate withdrawal of my SAVE plan application to prevent any confusion should it still be pending somewhere in their system. Withdrawal of my SAVE plan application information was confirmed in writing on XX/XX/XXXX by MOHELA. I was assured verbally a few days later when I called MOHELA that my SAVE plan application was officially withdrawn and any issue regarding the SAVE plan application was resolved. 

On XX/XX/XXXX, I received written correspondence, dated XX/XX/XXXX, confirming the forbearance would be ending on XX/XX/XXXX and my XXXX plan autopay would be resuming for my regular amount of {$150.00}. On XX/XX/XXXX, I received correspondence dated XX/XX/XXXX, confirming my auto pay amount to be deducted on XX/XX/XXXX. On XX/XX/XXXX, I also received a correspondence billing reminder, without a date, for my upcoming autopay on XX/XX/XXXX. 

However, on XX/XX/XXXX, I received correspondence dated XX/XX/XXXX, that my loans were again placed in forbearance. The correspondence indicated this was for the same reasons as stated in the previously resolved issue. Emails to MOHELA now went unanswered and call times were now up to 4 hours. The last time I called MOHELA back in late XXXX XXXX, my wait time on a Saturday was only XXXX minutes. 

On XX/XX/XXXX, after waiting 2 hours on a Thursday morning to speak with a representative, I spent an additional hour on the phone with them resolving the issue again. I was assured that this time it was officially resolved. I was given an internal MOHELA " Task number and code '' that signaled the official feedback case had been filed and the issue was resolved. Those are : XXXX # XXXX ; Code : XXXX. 

On XX/XX/XXXX, I received correspondence dated XX/XX/XXXX, that my forbearance was ending on XX/XX/XXXX and my original autopay amount would be resuming. I received additional correspondence on XX/XX/XXXX, dated XX/XX/XXXX, outlining my original payment plan installment schedule. A payment on my PAYE plan of {$150.00} cleared my bank account on XX/XX/XXXX. 

My loans were out of forbearance for about 2 days. On the morning of XX/XX/XXXX, I received correspondence, dated XX/XX/XXXX, that my loans were placed into forbearance again, for the same reasons previously indicated that do not apply to my account. 

On XX/XX/XXXX, I spent a total of XXXX hours on hold. My call was answered, the agent looked at my account and admitted that it should not be in forbearance after seeing the supervisor 's notes from XX/XX/XXXX that indicated the code that the forbearance was to be removed. He immediately transferred me to a supervisor and my hold time was to be an additional XXXX hours. Their office closed before I could speak to someone. 

I do not know how else to permanently resolve this issue. The federal student aid ( FSA ) hotline has told me each time I have contacted them that they are unable to help me with my account and I must speak with my loan servicer. FSA is able to look up my account portal and details, but they are unable to take action on any issues.

The Loan Management office with FSA was able to tell me that when I contacted MOHELA back in late XX/XX/XXXX, MOHELA should have submitted an official feedback case to resolve this issue. There is no record on my account stating that it was completed. XXXX XXXX did confirm that a feedback case was submitted on XX/XX/XXXX when I spoke with MOHELA the second time. I am reaching out to other agencies and organizations suggested to me that may be able to assist with this sensitive and time dependent issue. 

When my loans are in forbearance, my time does not count towards PSLF and I have to go through additional steps to get that time back. I have not chosen to be in forbearance. I do not feel it is appropriate or just for me to have to be placed in a disadvantage due to a mistake that is no fault of my own nor a reflection of my credibility, historical or current, as a borrower and consumer.

As of checking my account dashboard on FSA ( studentaid.gov ) on XX/XX/XXXX at XXXX, it is showing that my account is NOT in forbearance and I have a payment due on XX/XX/XXXX. This type of incongruence between my servicer ( MOHELA ) dashboard is unacceptable. 

On XX/XX/XXXX, MOHELA wrote to me that my forbearance was being processed. 

On XX/XX/XXXX, the forbearance was lifted again. On XX/XX/XXXX, my account was back in forbearance. I called and there was a XXXX hour hold and their office would close before receiving my call. 

On XX/XX/XXXX, I called FSA ( Federal Student Aid, the loan provider/US Dept of Ed agency ) and the agent confirmed with me over the phone that I am indeed on the PAYE plan, always have been, and that my account being in forbearance is wrong. 

On XX/XX/XXXX, MOHELA 's email answering service said again that I am on the SAVE plan and then instructed me to submit a new repayment plan application and select a plan other than the SAVE plan. This indicates to me that my emails are not being answered by an actual agent and/or my account information is not being referenced when answering my inquiries. It all, in my view, points to significant account mismanagement and noncompliance with my repayment contract with them, to say the least. 

I have submitted a formal complaint with the South Carolina Department of Consumer Affairs and they promptly submitted a referral on my behalf directly to the US Department of Education.

I have submitted several formal complaints with the FSA Ombudsman complaint center. I have not received a response yet and my first complaint was sent on XX/XX/XXXX. 

I have sent a summary similar to this one with all supporting documents of correspondence and account info to MOHELA and the US Department of Education.

Thank you for your time and consideration. I appreciate any feedback and referrals you are able to provide. I understand if you are unable to assist me and I will continue to seek resources to help me with this complication. 



Sincerely,

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