Consumer complaint received 2024-12-18 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: OR

Complaint narrative:
Hello, I submitted my repayment plan ( XXXX ) application to change from XXXX to XXXX. XXXX XXXX put out guidance that if we did this, we would be placed onto a processing forbearance for up to XXXX, and that that time WOULD count for XXXX purposes. I submitted my application then waited a several days to call and MOHELA to ask if it was received. After waiting on hold for XXXX hours, the representative that came on the phone confirmed that it was received. I then asked to be switched to a processing forbearance. The rep said they can not change me to a processing forbearance. 

This link clearly says otherwise XXXX XXXX XXXX XXXX  From the link : " I want to enroll in the XXXX XXXX  or another income-driven repayment ( XXXX ) plan or consolidate my loans. What do the recent court rulings mean for me? Borrowers may apply for XXXX XXXX  and/or to consolidate loans by using the online applications linked below : XXXX XXXX  ( XXXX ) Plan Application Loan Consolidation Application Borrowers may apply for the following income-driven repayment ( XXXX ) XXXX  : XXXX  ( previously known as XXXX  ) and XXXX XXXX ( XXXX  ). We encourage borrowers to review the specifics of each XXXX plan in order to make the best choices for their circumstances. For example, if a borrower enrolls in an XXXX XXXX and then moves to a different XXXX XXXX accrued and unpaid interest will capitalize ( be added to the principal balance ). Borrowers are still permitted to apply for XXXX XXXX, including XXXX ( previously known as XXXX  ), even though the court has enjoined some of the XXXX and other XXXX XXXX  provisions. The terms of the XXXX XXXX and other XXXX XXXX  are subject to the outcome of ongoing litigation. Borrowers should note that, under the courts injunction, no new enrollments are being accepted for the XXXX XXXX XXXX XXXX ( XXXX ) or XXXX XXXXt ( XXXX  ) Plans, with XXXX exceptions : Borrowers who applied for the XXXX  or XXXX XXXX  before XX/XX/year>, and borrowers who applied for the XXXX  or XXXX Plan between XX/XX/XXXX and XXXX XXXX  XXXX, if approved for that plan. Borrowers with a consolidation loan that repaid a XXXX XXXX loan can continue to enroll in the XXXX XXXX ( but not the XXXX XXXX  ). Borrowers should also note that, as a result of the injunction, servicers have temporarily paused processing of XXXX  applications until we can ensure applications are processed correctly. Borrowers should expect a lengthy delay in processing of applications, especially for borrowers applying for XXXX. We do not currently have an estimate of how long this will take. Borrowers should check this page for updates. If servicers need time to process a borrowers XXXX application, servicers will move the borrower into a processing forbearance for up to XXXX  days. Interest accrues during this short-term processing forbearance, and it is eligible for XXXX and XXXX for up to XXXX  days. If the borrowers application is not processed within XXXX  days, the borrower will be moved into a general forbearance that does not count toward XXXX or XXXX until their application is processed. Interest will not accrue in this general forbearance. '' Also, when I called XXXX, I was informed that MOHELA should be putting me into a processing forbearance.

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