Consumer complaint received 2025-11-28 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with your payment plan
Company: MOHELA
State: CA

Complaint narrative:
My loan servicer is MOHELA. 

I submitted an application to switch from my current payment plan which is in forbearance to the Income Based Repayment plan on XX/XX/XXXX through XXXX XXXX XXXX 

I resubmitted the same application directly to MOHELA through my online MOHELA account on XX/XX/XXXX or XXXX, XXXX. 

On or around XX/XX/XXXX, There was a notice published on the MOHELA website as a banner notification that anyone who submitted a payment plan application before XX/XX/XXXX should resubmit their application for processing. 

I resubmitted another payment plan change application on XX/XX/XXXX. I consented to letting the servicer access my tax information digitally through the IRS, and I was provided an estimated payment amount on that application before completing the submission. MOHELA confirmed receipt of this application on XX/XX/XXXX. 

The end date of the forbearance on my loans was changed from XX/XX/XXXX I believe, to XX/XX/XXXX - exactly two weeks after receipt of my new application. XX/XX/XXXX came and went with no change to the status of my account. On XX/XX/XXXX, I got a notice from MOHELA stating my account was back in forbearance, no end date was provided in that communication. I logged into my online MOHELA account to check the status there, and my account displayed a forbearance end date of XX/XX/XXXX, 4 months later than the initial forbearance placed. 

I called MOHELA support on XX/XX/XXXX to ask why processing of my application was pushed back and when I can expect to actually have my application processed. The representative at the time did not give me a clear reason : - Why my application was not processed in the initial two week time frame reflected in my online account- Why I was placed in back in a forbearance ending in XXXX this year Additionally, I was not given an estimate time frame to when my application would be processed. There was no guarantee given that the application would be processed by or before the forbearance end date in XXXX. 

I called MOHELA on XX/XX/XXXX, asking if there was anything I can or should do to ensure my application is processed by the end of the forbearance period displayed on my account. The representative I talked to on this call confirmed that - My application is not missing any information MOHELA needs to process it, - My application is in the Processing department The representative could not give me an estimate as to when the application would be processed by that department. They advised that if my application was not processed by XX/XX/XXXX to call back on XX/XX/XXXX. 

XX/XX/XXXX came and went with no change to my account and no notice of progress on processing my application. I called MOHELA again on XX/XX/XXXX asking again about the status of my application. I asked if there is anything I can do to expedite processing or get a realistic timeline as to when the application will be processed. The representative said there is nothing I can do, but they can transfer me to an advanced agent who may be able to help.

I consented to being transferred to an advanced agent, That representative advised that she had put my case into a queue for follow up by a supervisor, and that I should expect to hear from the supervisor in 10 business days. 

The following day, XX/XX/XXXX, my online MOHELA account reflected that my accounts status changed from being in a forbearance to being in Repayment. My account stayed in that status until what I believe was XX/XX/XXXX. When I logged into my online account on XX/XX/XXXX, my account was back in a status of forebearance, and the forbearance end date now displays as XX/XX/XXXX, three years from now. I received no calls or written communications from MOHELA during this time. 

I called MOHELA again on XX/XX/XXXX, as I had still received no communication from MOHELA on XX/XX/XXXX or XXXX. That representative I spoke to on this XX/XX/XXXX call explained that my account had been erroneously placed into a Repayment status, and that was why my account was reverted back to a forbearance status. The rep also stated that technically MOHELA had two more business days to follow up with me, as there had been some weekends and federal holidays between XX/XX/XXXX and the XXXX, The representative advised that I needed to wait until the following Tuesday for a response. That would have been XX/XX/XXXX. 

As of today, XX/XX/XXXX, I have received no call or written communication form MOHELA about the status of my application. I have already waited 5 months for this application to be processed. I have spoken to multiple representatives who have confirmed receipt of my application, confirmed the application is complete, but can not or will not tell me when this application will be processed. An extended forbearance of three years ( the new forbearance window ) is an egregious expectation, particularly since the prior forbearances placed on my account have come and gone with no progress and no communication.

Company response to consumer: Untimely response