Consumer complaint received 2025-08-10 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: MOHELA
State: CA

Complaint narrative:
I submitted an application to switch from the XXXX plan to the XXXX plan on XX/XX/XXXX. On XX/XX/XXXX, I got confirmation from MOHELA that my XXXX  application had been received and MOHELA would notify me regarding the status of my application soon. Because I still had not been moved from XXXX to XXXX, on XX/XX/XXXX, I sent a message to MOHELA stating that I had applied to switch from XXXX to XXXX in XX/XX/XXXX and asking when I could expect to be moved from the XXXX forbearance and resume making XXXX eligible payments under the XXXX plan. MOHELA responded with a boiler plate message about how to apply for an XXXX  plan. On XX/XX/XXXX at XXXX XXXX  XXXX, I called MOHELA and spoke with XXXX who told me that the XXXX application I submitted in XX/XX/XXXX was being cancelled. When I asked why MOHELA was cancelling my XXXX  application without informing me, XXXX transferred me to an advanced representative, XXXX. XXXX told me my XXXX application was not being cancelled and that it should take XXXX  days from the date it was received to be processed. I reiterated that I submitted my application in XX/XX/XXXX and asked if my application could be processed on an expedited basis. XXXX said she did not know and would transfer me to a supervisor. Since no supervisors were available, I signed up to receive a call back. On XX/XX/XXXX, at XXXX XXXX XXXX, MOHELA XXXX XXXX called me and told me there was nothing she could do to expedite the processing of my application, though she said my application had been assigned to someone to review in XXXX. XXXX XXXX could not give a timeline as to how long it would take for the review to be completed and she did not recommend that I reapply because that would put me back at the end of the line to get my application processed. On XX/XX/XXXX, at XXXX am, I called MOHELA and spoke with representative XXXX about my XXXX  application not being processed and the accrual of interest set to begin on XX/XX/XXXX. I asked XXXX if I could be placed on a processing forbearance instead of the XXXX forbearance since MOHELA had failed to process my XXXX  application in the last XXXX months. XXXX told me that XXXX is the entity responsible for processing forbearance and interest accrual and nothing could be done for me since I had agreed to take out loans and pay interest when I continued my education. XXXX also said that if I reapply for the XXXX plan, MOHELA may be able to remove me from the XXXX plan quicker. I told XXXX that I previously received conflicting information and asked if I could speak to a supervisor. XXXX asked me what I wanted to speak to the supervisor about and I told XXXX that I wanted to speak to a supervisor regarding the same issues- my XXXX  application not being processed and the processing forbearance. XXXX put me on hold for several minutes. Then, she came back on the line and read me a response, supposedly from someone else, that repeated what XXXX told me. I asked XXXX again to transfer me to a supervisor. XXXX transferred me to the supervisor line and since no supervisors were available, I signed up to receive a call back. On XX/XX/XXXX at XXXX XXXX  XXXX, XXXX XXXX called me. At first, she told me that reapplying for the XXXX program would help expedite the process of switching from XXXX to XXXX. I told XXXX XXXX that I previously received conflicting information. XXXX XXXX then put me on hold to double check my account information. XXXX XXXX then told me that it was just a matter of time before my XXXX application was processed since I submitted it in XX/XX/XXXX. She could not give me a timeframe, but said it would be processed " as soon as possible. '' On XX/XX/XXXX at XXXXXXXX XXXX XXXX, I called XXXX and spoke with XXXX. He verified that my XXXX application had been completed in XX/XX/XXXX and that there was nothing pending. I asked XXXX if he could move me to a processing forbearance instead of the XXXX forbearance but XXXX said that only MOHELA can remove me from the XXXX forbearance. MOHELA has prevented me from being able to repay my student loans and prevented me from making XXXX qualifying payments for the past XXXX months. Because interest has started to accrue as of XX/XX/XXXX, my loan balance will grow exponentially since I can not make any payments until my XXXX application is processed. Because my XXXX  application has not been processed, I will not be able to show mortgage lenders what my monthly student loan repayments will be under the XXXX program which will negatively impact my ability to get a mortgage loan. MOHELA needs to be held accountable for its incompetence and borrowers who are trying to repay their loans should not suffer as a result of XXXX XXXX incompetence.

Company response to consumer: Untimely response