Consumer complaint received 2025-01-24 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with your payment plan
Company: MOHELA
State: GA

Complaint narrative:
I consolidated my loans for PSLF purposed on XX/XX/XXXX. Mohela received my consolidated loans including an IDR request on XX/XX/XXXX or XXXX, XXXX. Since their receipt of my consolidated loans my account has had a pending IDR request for the SAVE repayment plan that was an option at that time. Despite filing this request in XXXX, Mohela never processed the IDR application, so my loans have been in limbo. They were not classified as SAVE nor placed in a SAVE forbearance because Mohela did not process my XXXX IDR application prior to the XXXX court stay. Since XXXX, my loans have been in a non-SAVE forbearance. This forbearance was extended in XXXX. I requested a processing forbearance to reflect that I had a pending IDR application; however, I never received any final confirmation about what type of forbearance my loans were placed in despite numerous calls and complaints. 

On XX/XX/XXXX, I filed a new IDR application through the Dept. of Ed. requesting a non-SAVE IDR payment plan, so that I can resume accruing PSLF qualifying payments. The application went through and I received confirmation at the time of application that my IDR request was forwarded to MOHELA for processing. When I filed the IDR application on XX/XX/XXXX, my loans were still in the unknown type of forbearance. In the application I requested that my loans be taken out of that forbearance once the IDR application is processed. I also understand, after years of managing my student loans and always completing IDR applications, that when a Servicer receives a new or updated IDR application, that the Servicer automatically places the loans in a processing forbearance until the new IDR application is processed. I know this not only from experience, but the IDR application itself states this will happen upon receipt of the IDR application. 

Unbeknownst to me, apparently Mohela processed my XXXX IDR request in early XXXX pursuant to my account information on Federal Student Aid. This early XXXX processing never appeared on my Mohela account. To date, this information does not appear on my Mohela account. I did not received any correspondence until XX/XX/XXXX, when I received a letter in my Mohela inbox entitled Your Student Loans Have Been Placed In A Forbearance. The letter indicated that my loans were placed in a SAVE forbearance. However, I did not receive any additional correspondence stating when the SAVE forbearance would start. My account online continues to show the forbearance placed in XXXX and showed that my loans are in a standard repayment plan, with the first payment due XX/XX/XXXX. My account online has never shown that my loans were placed into a SAVE forbearance. 

On XX/XX/XXXX I received a message in my inbox entitled Your Electronic IDR request was received. I contacted The Department of Educations Federal Student Aid and asked about the timeframes Servicers must follow regarding 1. When a Servicer must update/place student loans into a forbearance after receipt of an IDR application and 2. When a Servicer must process an IDR request. Federal Student Aid informed me that after a Servicer receives an IDR application, if they have not processed it in 10 days the Servicer must automatically place the borrowers student loans into a forbearance reflecting that a new IDR application has been received and is pending processing. 

On XX/XX/XXXX I received a notice that I had a message in my Mohela inbox. The notice, which is actually dated XX/XX/XXXX states that my loans are on a standard repayment plan and the first payment will be due XX/XX/XXXX. 

As stated, I received a message in my Mohela inbox stating that Mohela received my IDR application on XX/XX/XXXX. As of today, XX/XX/XXXX, I have not received any update about my loans being placed into forbearance that reflects my IDR request is pending processing. My account online continues to show that a payment is due on XX/XX/XXXX at the standard repayment plan amount. My account shows that my loans are in forbearance, however, this is the same forbearance my loans were placed into in XXXX, prior to the XX/XX/XXXX update that my loans were place in a SAVE forbearance. Critically, the current forbearance does not reflect either the SAVE administrative forbearance or the new forbearance that my loans should have been placed in 10 days after the receipt of my new IDR request Mohela received on XX/XX/XXXX. 

I emailed Mohela using the messaging platform on my account 's inbox/correspondence page requesting that that Mohela places my loans in the correct forbearance to reflect that there is a new pending IDR application. Mohela has not responded. Also, it is now past the 30 day processing time for Mohela to process my XX/XX/XXXX IDR application. I have not received any updates.

For reference, I have attached a copy of the IDR application page that states that Servicers will place loans into a forbearance while they are processing the IDR application, a copy of my Mohela inbox showing the limited correspondence I have received, a copy of the XX/XX/XXXX general SAVE forbearance letter, a copy of the XX/XX/XXXX receipt of IDR application letter, and the XX/XX/XXXX though uploaded on XX/XX/XXXX letter regarding my loans being on a standard repayment plan with the first payment due XX/XX/XXXX.

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