Consumer complaint received 2024-10-27 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: MOHELA
State: SC

Complaint narrative:
I am a public school teacher in XXXX XXXX, South Carolina. I have been a public school teacher since XX/XX/XXXX and would have qualified for total loan cancellation through Public Service Loan Forgiveness in the current month, XX/XX/XXXX, but my progress has been put on hold due to the current injunction against the SAVE plan. To explain, on XX/XX/XXXX, I completed my 120th consecutive month of employment as a public school teacher, but due to a two-month forbearance from XXXX XXXX, this would have put me completing my XXXX payment toward Public Service Loan Forgiveness in XX/XX/XXXX ; that is, before the SAVE plan was blocked.

I became aware that the SAVE plan was blocked due to the injunction in late XX/XX/XXXX ; consequently, on XX/XX/XXXX, I faxed a paper Income-Driven Repayment ( IDR ) application to Mohela to switch to Income-Based Repayment ( IBR ), yet they still have failed to switch me to Income-Based Repayment ( IBR ) 3 months later, as of XX/XX/XXXX. It is my understanding that the Income-Based Repayment ( IBR ) plan was created by Congress, has not been called into question by the current SAVE injunction, and that I would still qualify for Public Service Loan Forgiveness once I make my remaining 2 of 120 payments under Income-Based Repayment ( IBR ). 

I called Mohela on Tuesday XX/XX/XXXX, had to wait an absurdly long time to speak to a representative ( XXXX minutes ), then probably had to wait about XXXX more minutes to speak to a supervisor after I had been told ( erroneously ) that I currently can not switch to Income-Based Repayment ( IBR ) as it is also blocked by the SAVE injunction. I believe this information is false and misleading. I want to be switched to the Income-Based Repayment plan immediately, so that I can resume making 2 further payments in order to achieve total loan cancellation under Public Service Loan Forgiveness .

I have experienced a significant amount of anxiety and distress over this situation, and I do not wish to be further deceived by MOHELA and their dereliction of duty. It should not be this difficult ( and I truly do not believe it is ) to switch me out of the SAVE forbearance and into repayment via the Income-Based Repayment ( IBR ) plan so that I can make 2 further payments and receive Public Service Loan Forgiveness . I do not wish to remain in the SAVE forbearance for months while the courts fight it out and keep me in financial limbo. MOHELA holds {$73000.00} of consolidated federal student loans in my name, and they are absolutely not managing my loans in good faith. In fact, I believe they are purposely misleading me and mismanaging my loans to achieve their own ends. It needs to stop, and they should be compelled to switch me to Income-Based Repayment ( IBR ) immediately, so I can continue making progress toward achieving Public Service Loan Forgiveness .

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