Consumer complaint received 2024-11-19 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA
State: CT

Complaint narrative:
I am experiencing several issues with MOHELA related to my PSLF progress and repayment plan, and I am seeking immediate resolution. 

Background : Payment History and Status : I have been on AutoPay under an IBR repayment plan and have consistently made monthly payments with Mohela over the past few years via auto pay, even during the COVID pause. 
I never requested forbearance or paused payments. 
Despite my efforts, MOHELAs mismanagement and lack of proper communication have disrupted my payment counts, causing financial harm and prolonging my debt timeline. 
COVID Payment Disruption : During the COVID pause, I continued making payments through AutoPay. 
In early XXXX, MOHELA emailed me a generic notice for borrowers restarting payments to update banking info, which I ignored as my AutoPay was active and functioning. 
My XX/XX/XXXX payment was withdrawn via auto pay, but no payment was withdrawn in XXXX, and no notice was issued. When I inquired, MOHELA responded with a generic reply, later revealing over the phone I needed to re-enter the same bank information already in use. ( See attachment ). 
Although XXXX counted under COVID adjustments, this demonstrates how Mohela 's poor communication strategy causes harm to borrowers who follow the rules. 
XX/XX/XXXX Transition Disruption : I received notice about MOHELAs account transition to the new website but was given no assurance my missed or late payments would count for PSLF. 
I missed my XXXX due date because no payment instructions were provided and the sites were not working. My inquiries received only generic responses. ( see attachment ). 
I ended up making manual payments to try to stay current, which placed me in paid ahead status. Based on new PSLF rules, my understanding is that prepayments should not harm my count, but the lack of clear guidance leaves me uncertain. I called a Mohela rep a few months ago and asked to mark my account as never to be put in paid ahead status, and to always withdraw my monthly amount due on the due date via autopay. 
IDR Renewal Issue : I received a confusing letter on XX/XX/XXXX, about my repayment schedule changing, basically requesting that I rectify my income. The letter didnt explicitly state this ; it only mentioned that my payments would increase in XX/XX/XXXX. I had to resort to online forums to interpret what it actually meant. 
As requested, I submitted my IDR renewal in XXXX through MOHELA and the Department of Ed. I did it in XXXX to give Mohela enough time to process my information and ensure a smooth transition, but was placed in forbearance against my will. I DID NOT REQUEST A FORBEARANCE AS I DO NOT WANT TO LOSE OUT ON ANY MONTHS OF PSLF ELIGIBILITY. 
I made a manual payment for XXXX but was unable to make a XXXX payment on the site. 
Apparently, the IDR application deadline has been moved. Had I ignored the deadline and not tried to assist MOHELA by submitting my paperwork on time, I would still be on AutoPay, accruing PSLF-qualifying months, and progressing toward loan forgiveness. Instead, my diligence, combined with the incompetence of this system, has potentially cost me months and prolonged my debt. This has caused me financial harm through no fault of my own. 
Communication Failures : I can not tell what payments will count and will not count, because I submitted an XXXX in early XX/XX/XXXX to the Department of Education and have yet to receive an updated PSLF payment count three months later. 
Today, I spent 40 minutes on hold with Mohela before finally speaking with a representative. After explaining that I wanted to review my payment history, she said she needed to transfer me. Upon being transferred, the auto attendant informed me of an 89-minute wait time. I chose the callback option and confirmed my current number by selecting 1, but instead of being scheduled for a callback, the system asked me to participate in a survey and hung up on me. 
Resolution Requested : Seeing that I am losing PSLF eligible months due to no fault of my own, I need Mohela to assist me with the following : Confirm that payments made for XX/XX/XXXX through XX/XX/XXXX were received on time, in repayment status, and will count toward PSLF ( so long as I meet the other statutory requirements ). 
Reverse any forbearance applied to my account for any of the past 8 months and reinstate repayment status under my IBR plan. 
Allow a one-time manual or AutoPay payment for XX/XX/XXXX, counting it as timely. 
Remove me from forbearance immediately and reinstate AutoPay. 
Rescind my current IDR application, and allow me to reapply closer to my new deadline in XXXX. 
This mismanagement has caused significant financial and emotional stress.

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