Consumer complaint received 2025-01-03 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: WA

Complaint narrative:
Mohela Issues and Correspondence Notes 
Notes Recorded by Borrower
Timeframe of issues recorded: XXXX XXXX XXXX  XXXX XXXX

Call automation states: XXXX XXXX XXXX XXXX is best time to call, XXXX
Ive tried calling on those days/times. It doesnt help.

XXXX XXXXXXXX is my current payment. Calling to make sure I am good to go once XXXX nationwide XXXX payments are over
XXXX  helped me today - XXXX. Is what she submitted for approval. She said with this new SAVE plan, I can pay less. She said if XXXX is not approved Ill pay XXXX until XXXX resubmission is needed XXXX 
Letter approval of SAVE plan, payment amount XXXX. WHAT!

XXXX
Called and spoke with agent XXXX 
She said she requested with processing department to put me back on Pay as you Earn plan with XXXX payment. Will take XXXX XXXX XXXX to process. I should know by XXXX XXXX XXXX. Check online or call. 

If that doesnt go through, I can amend XXXX taxes to married separately status for lower payment oXXXX XXXX OR go onto general forbearance until we do XXXX taxes as separate. Payments will not be made towards PSLF if on forbearance. I have XXXX XXXX of forbearance. Ugh. This is so frustrating. If I didnt call to make sure everything was okay on XXXX then I wouldnt have this issue. XXXX XXXX  said it will be processed by end of week XXXXXXXX 
Forebearance letter in mail

XXXX
2 emails about correspondence delay and to check inbox - nothing is there. I have to call again. This is nuts. XXXX and XXXX XXXXo request Im put back on PAYE because save plan is a no 

Both representatives said they would process in XXXX XXXX XXXX 
ITS ALMOST XXXX XXXX
Called to ask about processing of IDR
she said her supervisor said it would be processed before my first payment date XXXX XXXX  will be first payment due 

Called Again - she said it wont be processed in time so I need to stay on forrbeaanxe 

Called again on XXXX 
SHE SAID MY PENDING IDR PLAN WILL NEVER BE PROCESSED OR WORKED ON EVEN THOUGH ITS BEEN PROCESSING ON MY ACCOUNT SINCE XXXX AND EVERY PERSON I TALK TO SAYS JUST WAIT THERES AN INCREASE IN CALLS AND APPLICTONS SO EVERTBING IS TAKING LONGER 
*child screaming in background throughout this XXXX XXXX XXXX XXXX min call 
What I qualify for today- Save plan XXXX dollars 
What I would qualify for if I filed taxes separately Pay as you earn plan XXXX
Sent me to supervisor to see if they can get me Changed back to the pay as you earn plan I was on XXXX 
Another call -XXXX XXXX  do I have free access to that I income,  
Do we share or keep it separate)
SAY NO about spouses income question XXXX
Sent by message system on mohela while waiting for help on the phone for XXXX XXXX: XXXX  
*also submitted with federal student aid gov website complaint form 
I have a confirmation number of my payment on XXXX, yet when I call it says my account is XXXX XXXX in delinquency. 
What is going on? 
I messaged a XXXX XXXX ago and have not received any correspondence. 
I am on the phone now, Ive been on for XXXX XXXX waiting for someone to pick up the phone 
Is there a direct line I can call so that I dont have to sit through XXXX XXXX of automated messages each time. 
I am a teacher and Im now to the point where I will need to put in for a substitute to get help (yet again) for mistakes with Mohelas system or whatever may be going on. 
Please help. 
I do not want my credit to be penalized because something is wrong with Mohelas system and also there is not enough people working at Mohela to support. 

The lack of support from Mohela makes me extremely frustrated, depressed and have anxiety. 
PLEASE get back to me. This is RIDICULOUS. 

My payment was set in XXXX XXXX XXXXXXXX  by the way, and because someones error on your part, my payment was increased by XXXX  Then in order to fix it, I had to put my account in forbearance and lose out on a qualifying payment for PSLF. There is no other word to describe all of this other than INSANITY. Now things are set back to normal and my payments arent even going though and Im XXXX XXXX in delinquency. This is a joke right? XXXX  - called again. Waiting for someone the entire commute to work again. Sitting in parking lot and someone finally answered
XXXX (said hes in training) 
Picked up after XXXX XXXX 
Regarding my question on why my payment didnt go through and why Im in delinquency when I have a confirmation number, he said theres no confirmation number that he has but he did say the following:
He said: There are issues with Mohelas system and isnt unable to processed the payment. In order for it to be processed or resolved it needs to be looked at by an advanced worker. 
XXXX XXXX XXXX  was refunded? Why? He says payment was returned 
Unfortunately I cannot call later to an advanced worker 

XXXX  XXXX XXXX XXXX  
After XXXX XXXX and XXXX XXXX I was finally done with automated messages and transferred to a customer service rep 
System said my wait time was now XXXX XXXX Wth.

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  when XXXX  was hired
Tried to post payment, XXXX  the payment didnt go through
XXXX sent mailed letter to tell me
XXXX XXXX - no negative credit reporting happening
Said to make sure I input bank acct numbers correctly (although letter says bank returned payment?) what,
Pay before XXXX or payment doesnt count 
Said she cant send ne a letter electronically
Put me on hold and said she could
Waiting for supervisor 
Supervisor working with XXXX XXXX XXXX XXXX XXXX  She said she cannot send me to a supervisor, they will call me back by end of business day or next business day
I said Ill wait until someone is available sent me to call back because I said I want to wait for a supervisor to call me back so she didnt send me to someone who can help me XXXX XXXX wasted
No supervisor called me back XXXX XXXXXXXX - Today I received the same letter in my Mohela Message Inbox from XXXXXXXX 
..Payment Has Been Reversed From Account: Please be advised your financial institution returned your payment effective XXXX, in the amount of XXXX. The payment has been reversed from your account for the following reason and your account may now be delinquent:..... XXXX XXXX XXXX XXXX XXXX
Body:MOHELA's Response:
Dear ________,
Please accept our sincere apologies for the long hold times. We value your feedback, as we understand how important it is to offer exceptional service. We have experienced significantly heightened demand recently, and we understand that this has made it difficult to connect with our specialists to discuss your concerns. We are working diligently to provide an improved experience for all student loan borrowers moving forward.

The most recent payment has been reversed from the account. Please be advised your financial institution returned your payment effective XXXX XXXX XXXX , in the amount of XXXX. The payment has been reversed from your account for the following reason and your account may now be delinquent: NO ACCOUNT / UNABLE TO LOCATE. We recommend reviewing the payment information that was entered. This error message is not to be confused with an insufficient funds message indicating that there is not enough funds in the account for payment. The unable to locate error means we were not able to locate your financial institution.

The last payment(s) of XXXX was received on XXXX XXXX XXXX and XXXX XXXX XXXX. Your next payment of XXXX will be due on XXXX XXXX XXXX XXXX XXXX XXXX XXXX, the U.S. Department of Education (ED) announced several changes and updates that will bring borrowers closer to forgiveness under income-driven repayment (IDR) plans. These adjustments to accounts include conducting a one-time revision of IDR payment counters to address past inaccuracies and permanently fix IDR payment counting by reforming EDs IDR tracking procedures going forward.
 
Based on the newly eligible months from the one-time account adjustment, borrowers who have reached 240 or 300 months (as applicable) worth of payments for IDR forgiveness or 120 months of PSLF will begin to see their loans forgiven in XXXX. The Department will continue to discharge loans as borrowers reach the months needed for forgiveness. All other borrowers will see their accounts update in XXXX.

More information on these upcoming changes is available at: https://studentaid.gov/announcements-events/idr-account-adjustment.
 
If you have any other questions or concerns, please contact us at the number listed below.
 
Sincerely,
 XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX    Secure Form Submission This message, from a debt collector, is an attempt to collect a debt and any information obtained will be used for that purpose.XXXX XXXX If you are struggling with your student loans, please fill out the form located at: XXXXXXXXt to get help from the XXXX XXXX XXXX XXXX XXXX XXXX XXXX: The state Rosenthal Fair Debt Collection Practices Act and the federal Fair Debt Collection Practices Act require that, except under unusual circumstances, collectors may not contact you before 8 a.m. or after 9 p.m.  They may not harass you by using threats of violence or arrest or by using obscene language.  Collectors may not use false or misleading statements or call you at work if they know or have reason to know that you may not receive personal calls at work.  For the most part, collectors may not tell another person, other than your attorney or spouse, about your debt.  Collectors may contact another person to confirm your location or enforce a judgment.  For more information about debt collection activities, you may contact the Federal Trade Commission at XXXX  or www.ftc.gov. XXXX  I received a letter from MOHELA stating:
Your student loans are in a forbearance. On XXXX XXXX XXXX, a federal court issued a stay preventing the Department of Education (ED)from operating the Saving on a Valuable Education (SAVE) Plan. As a result of this ruling, ED has directed MOHELA to put your account into a forbearance. You can find more information at StudentAid.gov/saveaction.


What does this mean for me?
While you are in this forbearance no payment is required on your account and your interest rate will be set to 0%. This means no interest will accrue while you are in the
Forbearance. You will not receive credit toward IDR forgiveness and Public Service Loan Forgiveness (PSLF) for the month(s) covered by the forbearance. If you made or make a payment for the month(s) you are in the forbearance, the amounts paid will go toward satisfying your future payment(s). We will notify you before the forbearance comes to an end. We do not currently have a time estimate. We will then send you your next monthly billing statement at least 21 days before your next monthly payment is due
At this point I was ill. After all the issues I went through to get my payments set up to now not being able to pay them.. So incredibly infuriating. They are my loans and Ive been enrolled in PSLF for years! I should be able to continue paying under the PSLF qualifying plan! 


XXXX  I contacted MOHELA again, because it had been 4 months since I was put on administrative forbearance after FINALLY getting my payment plan ready to go with the new SAVE plan:  
FROM MOHELA:
Thank you for contacting MOHELA,
Although the General Forbearance for borrowers enrolled in SAVE does not count toward PSLF, there are currently two ways borrowers may be able to receive PSLF credit. Borrowers should review these two options closely before taking any action.
1) Buy Back Credit: Some borrowers may be eligible to buy back months of PSLF credit for time spent in forbearance as a result of the courts injunction. Borrowers with 120 months of eligible employment can buy back (make payments to cover) past months that were not counted as qualifying payments because the borrower was in an ineligible deferment or forbearance status. Borrowers must submit a buyback request and make an extra payment of at least as much as what they would have owed under an income-driven repayment (IDR) plan during the months they are trying to buy back.
Borrowers can buy back these months only if:
- they still have an outstanding balance on their loan(s),
- they have approved qualifying employment for these same months, and
- buying back these months will complete their total of 120 qualifying PSLF payments.


This is a new process that ED began making available XXXX XXXXXXXX Learn about eligibility and how to buy back months by visiting XXXXXXXX Note: Borrowers who have consolidation loans can buy back months only on the current consolidation loan. These borrowers cant buy back months from the loans included in the consolidation loan or for any period prior to the first disbursement date of a consolidation loan.


2) Enroll in a different PSLF-eligible repayment plan: Borrowers can apply to enroll in a different PSLF-eligible repayment plan. We encourage borrowers to look at the specific terms of each plan to make the best choice for their individual situation. See above for more information. Different IDR plans may require higher monthly payments than the SAVE Plan does, andin the case of some IDR plansborrowers who later leave them may face interest capitalization (where unpaid interest is added to the principal balance). However, payments made under these IDR plans will count toward forgiveness under IDR and PSLF.Borrowers should expect a lengthy delay in the processing of applications. Further communication will be provided as this develops.


Additional details pertaining to the impacts of this stay will be provided as they become available. You may also visit XXXXXXXX and XXXXXXXX for updates.


If you have any additional questions, please contact us toll free at XXXX. Our hours are XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXXXXXX XXXX.


Thank you,
MOHELA


Original message from me to MOHELA:


Greetings, 
I would like to make qualifying payments for PSLF again. When can I do this? Its been XXXX XXXX! 
This is crazy. Im currently on the phone, XXXX XXXX and counting on hold to speak to someone who can assist me. 
Please get back to me soon. 


Thank you, 
__________


XXXX
I received a letter from MOHELA stating interest would continue to accrue on my loans during the administrative forbearance period.  
This is what the letter states: 
BORROWER:
Loan Update:
In an effort to keep you updated on your federal loan(s), we have enclosed details about your loan(s), including the accrued interest, interest rate, and total balance. The loan(s) listed in this letter are currently in forbearance. Although no payments are due at this time, interest continues to accrue on your loan(s) during the forbearance period. You have the option to pay the interest during forbearance. XXXX
I went online to review the latest letter from MOHELA and read about my options. 
I cannot switch to a different qualifying PSLF payment plan because MOHELA and federal student aid states that switching would result in a processing forbearance - so this would put me in the same exact position I am currently in, therefore, its not an option. All information that Ive been given over the years from Mohela representatives via phone or through the website/my messaging about repaying MY OWN student loans is inaccurate or the information is only correct/valid for a few months before it changes again. The ever-changing agreements to my loans and repayment and PSLF causes me an immense amount of stress. It is impacting my mental health and the stress and confusion makes me physically ill. I have to take time off of work XXXX XXXX XXXX XXXX) to call MOHELA because the wait times are so long. 


All the months of administrative forbearance I have been placed on while on the SAVE plan should count towards my PSLF qualifying payments, please switch them from ineligible to eligible. From XXXX XXXX XXXXXXXX, and moving forward, all months that I am still on administrative forbearance should count towards my PSLF qualifying months, too. Since there is no other plan I can apply to without being placed in another processing forbearance (for an unknown amount of time) this is the only fair resolution. Once the above resolutions are in place, I would also like to receive loan terms and PSLF terms that state how many more qualifying payments I need to make to qualify for the final PSLF forgiveness. I would also like to request a date of when my payments of XXXX  will resume.

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