Consumer complaint received 2025-03-24 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA
State: PA

Complaint narrative:
To the Consumer Financial Protection Bureau, This complaint is a follow-up to the complaint I submitted on XX/XX/XXXX, regarding the ongoing delays and mismanagement of the XXXX XXXX XXXX XXXX  XXXX XXXX ) program by MOHELA. I am writing again in response to MOHELA 's interim response dated XX/XX/XXXX, which I found to be wholly inadequate and indicative of the continued systemic issues plaguing XXXX borrowers. 

In their response, MOHELA states that " Borrowers enrolled in the XXXX XXXX are being moved into forbearance. During forbearance, XXXX  borrowers will not have to make payments. XXXX The time in forbearance will not count toward XXXX XXXX XXXX XXXX ( XXXX XXXX or XXXX XXXX ( XXXX ) loan forgiveness. '' XXXX This unilateral action of placing XXXXXXXX XXXX  participants into forbearance is a significant setback and directly undermines the progress borrowers have made towards XXXX. The very foundation of income-driven repayment plans like XXXX is to facilitate loan forgiveness through qualifying monthly payments. By forcing borrowers into forbearance, MOHELA is effectively pausing our journey towards forgiveness, extending our financial burden, and causing undue stress and uncertainty. 

MOHELA 's explanation that this action is a result of an administrative stay and a directive from the Department of Education to temporarily pause processing of XXXX applications until they can ensure correct processing is concerning. While ensuring accuracy is important, the consequence of this pause a blanket forbearance that doesn't count towards forgiveness is unacceptable. Borrowers who have diligently followed the rules and made qualifying payments are now being penalized by further delays that are outside of their control. The lack of a clear timeline for when this forbearance will end and when XXXX applications, particularly for XXXX, will be processed correctly is also deeply troubling. The statement that borrowers should expect a " lengthy delay '' offers no concrete information or reassurance. 

Furthermore, MOHELA 's mention that the XXXX XXXX is fully managed by the XXXX Department of Education on XXXX as of XX/XX/XXXX raises questions about MOHELA 's continued role and responsibility in this process. If the program is now managed by the Department of Education, MOHELA 's decision to implement this widespread forbearance and their continued handling of borrower accounts seem contradictory and further complicate an already convoluted system. 

The interim response from MOHELA provides no actionable steps to resolve the issues I and many other XXXX borrowers are facing. It merely acknowledges the problem and points to external factors without offering any concrete solutions or timelines. This lack of transparency and accountability is unacceptable for a program that public servants rely on after years of dedicated service. 

I request that the CFPB investigate MOHELA 's handling of the XXXX program, specifically their decision to place XXXX plan participants into forbearance, the lack of a clear timeline for resolving XXXX application processing, and their overall communication and management of borrower accounts during this transition. We, as public servants, are entitled to a clear and efficient path to the loan forgiveness we have earned. The continued delays and lack of transparent information are causing significant financial and emotional hardship. 

Sincerely, XXXX XXXX

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