Consumer complaint received 2024-05-14 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: MOHELA
State: WI

Complaint narrative:
On XXXX XX/XX/XXXX, I called and spoke with a Mohela representative ( after several holds and transfers ), who walked me through the process of submitting an application to consolidate two of my loans and also submitted an IDR request application to recalculate the income-based repayment plans on my existing loans. My loans were placed on an administrative forbearance retroactively from XXXX XX/XX/XXXX through XXXX XX/XX/XXXX to process this initial IDR for my unconsolidated loans ( see attached ). This initial IDR request was confirmed in XX/XX/XXXX ( see attached ) and I resumed payment on my loans XXXX XX/XX/XXXX. 

On XXXX XX/XX/XXXX I received confirmation from Mohela that the consolidated loan had been disbursed ( see attached forms ). At that time, I noticed that the consolidated loan had been placed on the Level plan despite all of my other loans ( sequences XXXX ) being on the XXXX plan. I submitted an application for direct deposit ( which was approved on XXXX XX/XX/XXXX ) on the newly consolidated loan as repayment was scheduled to begin soon. I assumed there was a processing delay in updating the repayment plan on the online consolidated loan info. 

On XXXX XX/XX/XXXX I still had not received an update on my consolidated loan and now had an overdue payment for the incorrect amount since the loan was still on the standard rate Level plan, not the income-based rate of the XXXX plan that I had been attempting to get the consolidated loan on ( and that the rest of my loans were already on ). I called customer service. Again, I was transferred and then placed on hold for an extended period. I asked for a call back, but was not available when the representative returned my call later in the day. 

On XXXX XX/XX/XXXX, I called customer service to follow-up on my issue regarding the consolidated loan. The representative talked me through the process of submitting an IDR recalculation request, taking my information over the phone. I was told it would take at least 10 business days to process. The consolidated loan and my other loans were placed on administrative forbearance through the end of XXXX, retroactive to XXXX XX/XX/XXXX ( see attached ). 

On XXXX XX/XX/XXXX, I received a message from Mohela that my IDR request had been approved ( see attached ) and my unconsolidated loans ( sequences XXXX ) had been placed on the SAVE plan. However, the consolidated loan ( sequence XXXX ) was not included in this IDR change and remained on the XXXX  plan. 

On XXXX XX/XX/XXXX, I called customer service to get an update. I was again transferred and on hold for an extended period. I can't recall if I wasn't able to get ahold of someone that day or if I was told the consolidated loans may still be processing, but there was no movement on my issue. 

On XXXX XX/XX/XXXX, there still had been no change on my consolidated loan. I called customer service and was disconnected after being on hold for an extended period. I tried again and did get through to a representative, but interference on their end made the conversation impossible and I asked them to transfer me. I eventually was able to speak with a different representative after a call back, who again walked me through the process of re-submitting an IDR for the consolidated loan. I again gave my income information over the phone. I again was told it would take a prolonged time to process ( XXXX business days ). Although I did not realize at the time, it seems they forgot to instruct me how to properly submit the application, as the paperwork was never received for processing. 

On XXXX XX/XX/XXXX, I still had received no satisfactory update to the repayment plan on my consolidated loan. I called Mohela customer service and was able to speak with a representative after being on hold for a prolonged period. They explained that the IDR request did not go through and that they were unsure why the consolidated loan was not being processed to update the repayment plan. The representative placed me on hold and spoke with a supervisor ; it seemed like they had solved the issue. They again talked me through the IDR re-submission process, accepting the same information over the phone that I had previously provided ( to the best of my recollection ). An additional administrative forbearance was placed on the consolidated loan through the end of XX/XX/XXXX ( see attached ). I asked for the forbearance on my other loans to be lifted so I could continue making qualifying payments on them starting at the end of XXXX. The changes in forbearance were processed without issue. I later received a message from Mohela that, while my request was being worked on, there would be long delays in correspondence ( see attached ). 

On XXXX XX/XX/XXXX, I received a message from Mohela that my IDR request had been processed ( see attached ). However, it was apparent that, again, only the unconsolidated loans ( sequences XXXX ) were updated with a new XXXX plan calculated monthly payment ( this being the second time they were unnecessarily updated after my initial request in XX/XX/XXXX ). The consolidated loan ( sequence XXXX ) remained untouched and on the much higher monthly payment XXXX plan. 

On XXXX XX/XX/XXXX, I attempted to contact Mohela customer service and was able to get ahold of someone quickly. After expressing my frustration and explaining my issue, it seemed the representative had a good understanding of what the issue was. They explained that the initial IDR request in the beginning of XXXX may have been submitted too soon after the consolidation went through which is why it was not processed with the other loans on the IDR. They explained that the representative I spoke with later in XXXX had not properly helped me submit the correct form. They explained that something must have been lost in translation when the representative helped me re-submit the IDR form in XXXX which is why the consolidated loan was again missed. They explained they would help me re-submit again and would place a note that the consolidated loan ( sequence XXXX ) was to be included. I ( for the fourth time ) provided my income/tax information over the phone and was given an estimated monthly payment for all of my loans on the updated XXXX  plan ( all sequences combined, XXXX and the consolidated XXXX ). I thought this would solve the issue as the representative seemed much more knowledgeable than previous reps I had spoken with. They told me they would send an email with a link to finish the application, which none of the previous reps had provided to me. 

On XXXX XX/XX/XXXX, I still had not received the promised email to complete the IDR submission request. I again called customer service and was able to get ahold of someone relatively quickly. This representative explained that I was supposed to complete the application on my own and seemed surprised that the previous rep had not instructed me to this effect. This representative directed me over the phone to the online IDR application and walked me through it to completion. They did see the note to pay close attention to consolidated loan XXXX and make sure it was included in the IDR request. I was instructed that it would take up to XXXX ( I did a double-take before confirming this number ) business days to fully process this request. I expressed my frustration with the situation and the rep apologized for any inconvenience. 

On XXXX XX/XX/XXXX, I received a message from Mohela that the IDR request had been processed ( see attached ). Again, only the unconsolidated loans ( sequence XXXX ) were unnecessarily processed ( third time ). The consolidated loan ( sequence XXXX ) remained on the incorrect XXXX plan. I hazarded that there might be a delay on the consolidated loan due to the prolonged time I was told it would take to process ( up to XXXX business days ) and decided to wait a couple of weeks to see if it would update separately. 

On XXXX XX/XX/XXXX, there still had been no update on the consolidated loan. I examined my Mohela account and saw that the most recent IDR request had been listed as a duplicate form on XXXX XX/XX/XXXX and then cancelled on XXXX XX/XX/XXXX. I called customer service and after expressing my frustration and exasperation at the ongoing issues was told I was being transferred to a supervisor. I was instead transferred to a representative who explained they were in training and being overseen by a trainer. I explained my situation to this trainee rep, who placed me on hold multiple times over an approximately XXXX hour period, presumably to troubleshoot with the supervisor. I was initially told that the consolidated loan did not qualify for the XXXX plan but would qualify for a different income-based repayment plan - I told them I did not think this was correct as all of my loans had been on the XXXX XXXX prior to consolidation and I had never received any indication from other Mohela reps that the consolidated loan would not qualify. After a brief hold, the trainee rep backtracked and confirmed that the consolidated loan would in fact qualify for the XXXX plan. Finally, I was told that the problem had been discovered and there would be an administrative delay of XXXX business days to " open '' the consolidated loan ( sequence XXXX ) so that it could be processed after which I would need to re-call Mohela customer service to re-tell them my income/tax information so they could re-submit a fresh IDR request. I asked why there would be a delay to " open '' the loan and was not given a satisfactory answer. I asked if I would receive any notification after 5-7 business days, or whenever the loan was " open '' to processing, and was told " no '' and that I would just need to call to find out if it had gone through. I asked why I would need to re-iterate my income/tax info to Mohela despite XXXX already done so multiple times with no change in my income or tax status and was not given a satisfactory answer. I begrudgingly confirmed I would attempt to call back in XXXX business days and hope to get ahold of someone who could help me process the request. I asked the trainee rep to notify their supervisor that I would be submitting a CFPB complaint.

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