Consumer complaint received 2024-09-05 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: RI

Complaint narrative:
My XXXX and XXXX  student loans servicer through this year had been XXXX. Their letter of XXXX XXXX XXXX ( attached ) states : " XXXX XXXX XXXX XXXX XXXX XXXX XXXX  has been approved on your eligible loans.

Your calculated XXXX XXXX payment amount : {$0.00} Plan begin date : XX/XX/XXXX Plan end date : XX/XX/XXXX '' StudentAid.gov also has documented this spring that my XXXX  application is approved. 

Reading about President Biden 's XXXX, etc., student loan forgiveness plans : XXXX XXXX XXXXannouncement I applied this spring to Consolidate my loans on StudentAid.gov by the XXXX XX/XX/XXXX deadline. However, I then received an e-mail stating that Federal Student Aid needed a number of days to set up an online account for me, extending beyond the deadline, and thus I couldn't submit my completed application in time ( " Submit '' was grayed out on their Web site ). I then wrote them a letter requesting an extension of the deadline. I eventually got a phone call and was informed that the deadline had been extended to XXXX XX/XX/XXXX. I met this deadline. The Consolidation application calculated that I would still have a {$0.00} monthly payment due whether my plan was XXXX, XXXX, or XXXX  ( see my attached Consolidation application screen captures of XXXX XX/XX/XXXX ). I never would have left XXXX and Consolidated my loans with StudentAid.gov if I had known that I was only being BAITED into a Standard repayment plan with Mohela for {$290.00} per month. With low Social Security annual income, I would NEVER have Consolidated. 

XXXX assigned me to Mohela who sent me XXXX ( XXXX ) envelopes without postmarks, with their enclosures having dates of XXXX XXXX, XXXX XXXX, and XXXX XXXX. 
XXXX that I received on Monday, XXXX XXXX XXXX, that demanded monthly payments of {$290.00} starting in less than a month ( XXXX XXXX XXXX ). The XXXX dated XXXX XXXX XXXX states : " Billing Statements : Monthly billing statements will be sent to you at least 21 days prior to your due date.... 
Repayment plan : STANDARD ''. 

They should be postmarked! Otherwise, there's no accountability. 

I called them and complained. I spoke with an XXXX, and an XXXX. The latter, a supervisor in the resolution department, belatedly assigned me to a " Processing Forbearance '', which I understand can last a maximum of 60 days. I am concerned about PREDATORY LENDING. Plus the facts, as reported below : XXXX, XXXX, and XXXX XXXX. " Supreme Court, for Now, Keeps Block on Revamped Biden Student Debt Plan ''. The XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) : XXXX. 

" The [ Supreme Court ] justices order focused on a lawsuit that had reached the XXXX XXXX. XXXX XXXX XXXX XXXX, in XXXX XXXX. In XXXX, the appeals court issued a broad hold on the program, granting a request by a group of XXXX states to pause the plan while the courts considered the merits of the case.... 

Legal challenges to the new plan began in XXXX, when XXXX states led by Kansas filed a lawsuit in XXXX XXXX XXXX for XXXX XXXX XXXX XXXX. 

The next month, XXXX XXXX, the Missouri attorney general, and XXXX other states challenged the plan in XXXX XXXX XXXX for the XXXX XXXX XXXX Missouri. Lawyers in that lawsuit argued that the president was unilaterally trying to impose an extraordinarily expensive and controversial policy that he could not get through XXXX. In XXXX, an appeals court in the Missouri case temporarily blocked the entire XXXX XXXX.... 

In response, lawyers for a number of XXXX states, including Missouri, Arkansas, Florida and Georgia, XXXX that the Biden administration plan was based on an unprecedented statutory interpretation that would give the administration unfettered power to cancel every XXXX of every federal student loan. 

Mohela is in Missouri! " the XXXX XXXX. XXXX XXXX XXXX XXXX, in XXXX XXXX. In XXXX, the appeals court issued a broad hold on the program '' -- on XXXX XX/XX/XXXX. 

My Consolidated loan was disbursed five ( 5 ) days later on XXXX XX/XX/XXXX. 

And not given a " Processing Forbearance '' until after I called and complained. 

In addition to PREDATORY LENDING, I believe that COLLUSION on Mohela 's part with XXXX XXXX XXXX XXXX., was involved! Please have my loans returned to a {$0.00} per month payment. Thank you!

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