Consumer complaint received 2025-03-18 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: PA

Complaint narrative:
I was in touch with an expert and he asked for the following info : Were you on SAVE before you submitted your consolidation application? YES When did you submit your consolidation application? XX/XX/XXXX per studentaid.gov When were you told the consolidation was completed? Dec 18, 2024 per studentaid.gov Did you re-enroll in SAVE after the consolidation was completed and, if so, when? Yes, at the same time as the consolidation app, this is what I am seeing on studentaid.gov : Application Information Requested Plan Type : Saving on a Valuable Education ( SAVE ) Requested Payment Plan : SAVE Repayment Plan Did you make any payments under SAVE after your consolidation was completed? My initial payments were XXXX but I did make a couple of payments just because, but they placed that money on the interest of the loan even though I asked for principal payments. None of those small amounts went to principal so I didn't pay any extra since my payments were set to {$0.00}. 

Extra details that may help : XXXX XXXX I received a notice that my payment was due on XX/XX/XXXX even though my consolidation paperwork was not finalized yet. I called and they applied a processing forbearance. Received a bill for a payment due on XX/XX/XXXX. XX/XX/XXXX I received a letter from Mohela that my loans are in forbearance due to the federal court injunction re : the SAVE plan and some IDR plans. XXXX directed Mohela to place my account in forbearance and interest would not accrue and that I would be notified when this forbearance ends. On XX/XX/XXXX I spoke with a rep at Mohela and was told I no longer needed to call, my account was placed on an administrative forbearance. 

I received another payment due notice for XX/XX/XXXX. Called for another processing forbearance. On XX/XX/XXXX received another letter identical to the one I received on XX/XX/XXXX. At this time I got through to someone ( hold times in the evening were 4 hours - I got lucky, had a 2-hour delay for the next school day, and was able to call one morning when I'd normally be at work already ). Spoke with a rep, XXXX, who told me she fixed the issue, that I should be in an administrative forbearance, my interest should not have accrued, and that it would all be taken care of. She also stated that I would not need to make any payments until the SAVE plan court issue was decided. 

Interest has continued to accrue, and the payment I was told I need not make is now considered late and I have another payment now due as I received another bill with the payment due on XX/XX/XXXX. I tried calling Mohela when I got home today and the wait time was almost 6 hours. I am not trying to get out of paying my loans- I am just looking for fairness and for the letters I have received to be abided by. This time frame to call Mohela and get any kind of help ( XXXXXXXX XXXX XXXXXXXX ) - after I have tried to settle this several times previously - is ridiculous. I work from XXXX - XXXX EST, but also help with our XXXX  XXXX XXXX team most XXXX, and am not home until XXXX XXXX.

Company response to consumer: Closed with explanation