Consumer complaint received 2025-01-28 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: NY

Complaint narrative:
Dear CFPB, I am a student loan borrower, who consolidated my loans by the deadline established by the federal government of XX/XX/year>. I also submitted by XXXX  plan application by the deadline. Upon the court 's blocking of the XXXX plan, the federal government allowed all student loan borrowers who consolidated their loans under the federal program, and who submitted application for XXXX is being processed- the government allowed us interest free forbearance. I confirmed this by writing to XXXX, who confirmed that they directed all loan servicers to put borrowers in my situation on interest free forbearance. 
Mohela on its own without my consent decided to put me on a standard 10 year repayment plan with an XXXX monthly payment. As an unemployed newly graduate I was not in the position to make such a large payment. Mohela told me that since XXXX was blocked, they automatically put me on the 10 year standard repayment plan. I mentioned to them about the Processing interest free forbearance due to my save plan application being pending and they misled me by telling me my only option was " admin forbearance '' with interest accruing and that I would have to call every two months to request and process it. So from XXXX to XXXX I had to continue calling every two months until one day, I received a letter from Mohela saying because my XXXX application is being processed, my loans are now in Interest Free forbearance on XX/XX/year>. However, on XX/XX/year> I received another letter from Mohela stating the total opposite where my loans are now in admin forbearance with interest added. I called in Mohela who deflected my inquires and bounced me around 3-4 reps during which I spent 3-4 hours one day and another 5-6 hours waiting on hold the next day. When I finally spoke with a supervisor from Mohela they confirmed that there was an error on their part and I was correct. The Mohela supervisor told me that she filed a ticket to fix this issue and back date my forbearance to be interest free. She assured me that this would fix the issue and I would not have to take any further steps. Later in XXXX I received a past due notice and again I called Mohela back and once again once I got to the supervisor she confirmed that I was right and was not sure why the request from the previous supervisor was not processed. The supervisor XXXX XXXX told me that this ticket she filed to in regard to the last request from XXXX being processed should fix the issue. She told me that in case it does not I can call back and request her by asking for supervisor XXXX ext XXXX. This request was supposed to be processed in 4-5 business days. It is now the end of XXXX and now my account is showing as 2 months past due. I tried calling Mohela to request for XXXX XXXX the supervisor at ext XXXX and after a 4 hour hold, the representative told me she could not transfer and I would have to wait in a que of another 4-5 hours. It was now the end of business, and I could not afford to continue to wait on hold days after days for the same request, while Mohela continued to mislead me, and continues to mismanage my loans. Mohela has been sued for these call deflecting tactics, so this is nothing new for them. As of now, after filling a request to fix the forbearance issue and back date it to be interest free in XXXX, and XXXX, It still has not been processed. My account is showing as 2 months past due as of now, and in XXXX unless the issue is resolved on Mohela end it will be 90 days past due, even though It should have been in interest free forbearance because my save application is still pending. I continue to receive contradicting information from various Mohela representatives and for some reason no one can explain why this error is happening and why it is not being resolved.

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