Consumer complaint received 2025-01-30 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Can't temporarily delay making payments
Company: MOHELA
State: OR

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX, OR, XXXX XXXX XXXX XX/XX/XXXX Consumer Financial Protection Bureau XXXX XXXX XXXX, IA XXXX Subject : Complaint Against MOHELA for Failure to Process Forbearance Directive From DoE To Whom It May Concern, I am writing to formally lodge a complaint against MOHELA regarding their failure to process the student loan forbearance on my account as directed by the Department of Education ( DoE ) in a timely manner, resulting in my account being placed in delinquency. Despite my proactive efforts, including multiple hours-long phone calls with MOHELA customer service representatives, to ensure my loans were placed in a 0 % interest forbearance as directed by the DoEand as confirmed in two letters from MOHELA dated XX/XX/XXXX, and XX/XX/XXXX, XXXXMOHELAs negligence has caused undue stress and potential financial harm. 

On XX/XX/XXXX, I applied for federal direct loan consolidation through Studentaid.gov to enroll in the new XXXX XXXX XXXX ( XXXX ) Plan and benefit from the One-Time Payment Count Adjustment, as encouraged by the XXXX Administration. As a XXXX XXXX I indicated my eligibility for the XXXX XXXX XXXX XXXX ( XXXX  ) Program and applied for the XXXX XXXX plan. My loans were consolidated and assigned to MOHELA for servicing on XX/XX/XXXX. However, due to a federal court injunction preventing the implementation of XXXX  while my application was processing, MOHELA was unable to process my XXXX XXXX request and instead placed me on a standard repayment plan, which I did not request and which does not qualify for XXXX. 

On XX/XX/XXXX, I contacted MOHELA for an update on my XXXX application and to explore repayment options, as the standard repayment plan was unaffordable and did not qualify for XXXX. MOHELA placed me on a XXXX processing forbearance while awaiting updates on the XXXX litigation. I called again on XX/XX/XXXX, to extend the processing forbearance for another 60 days, as there had been no progress on my XXXX XXXX request. 

On XX/XX/XXXX, I received a letter from MOHELA assuring me that my student loans were placed in forbearance at 0 % interest due to either ( 1 ) the federal court injunction affecting the XXXX plan and other XXXX plans, or ( XXXX ) their failure to process my IDR application within the required 60-day timeframe. However, despite this confirmation, MOHELA failed to implement the forbearance properly, causing my account to become delinquent in XXXX. 

I contacted MOHELA at least XXXX separate times, spending hours on hold to speak with a representative, only to be transferred to an " advanced team, '' in an effort to have my account updated in accordance with the letters I had received. Despite repeated assurances from multiple customer service representatives, MOHELA failed to process my request, and my account remains marked as delinquent. 

I have made every reasonable effort to resolve this issue directly with MOHELA, yet they have been unresponsive and unwilling to take appropriate action to correct their mistake, adhere to DoE guidance, and process my forbearance request. Their failure to act is unacceptable and has caused unnecessary financial and emotional distress while also putting me at risk of defaulting on my loans. 

I request that the Consumer Financial Protection Bureau investigate this matter and hold MOHELA accountable for its negligence. Furthermore, I urge MOHELA to retroactively apply the 0 % interest forbearance, backdated to no later than XX/XX/XXXX, as originally intended, and correct any negative impact this delinquency has had on my loan balance, credit report, or loan status, including the removal of any accrued interest. 

Thank you for your time and attention to this serious matter. Please let me know if any further documentation is required. I appreciate your prompt assistance in resolving this issue. 

Sincerely, XXXX XXXX XXXX MOHELA Account # XXXX

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