Consumer complaint received 2025-04-16 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: RI

Complaint narrative:
I am currently under the XXXX plan with loan servicer MOHELA and was placed under a general forbearance on XX/XX/XXXX. I submitted an application to change to the XXXX XXXX XXXX on XX/XX/XXXX. The XXXX XXXX XXXX says that as of XX/XX/XXXX, " Your loan servicer has received your application. They'll start reviewing it, including any documentation of income provided, and will notify you once their review is completed. '' I received an email from the U.S. Department of Education on XX/XX/XXXX, notifying me that " if you submit an application to enroll in an XXXX XXXX other than XXXX, but your loan servicer is unable to process your application within XXXX business days of receiving the application or before your next billing statement will be sent, you will be moved into a processing forbearance for up to XXXX  days. During this period, you do not have to make monthly payments on your student loans, interest is accruing, and time spent does provide credit toward XXXX and XXXX. When you are moved into forbearance, your loan servicer will notify you about which type of forbearance you are in and which previous months were covered by which type of forbearance. They will also notify you when you have been placed into a new XXXX plan. '' I sent a message to MOHELA 's customer service on XX/XX/XXXX and asked for a status update on my forbearance/application, since my XXXX  application was received but not processed within XXXX business days and it had been over 60 days since my application submission. 

MOHELA replied on XX/XX/XXXX : " Thank you for contacting MOHELA, Regarding your secured message. Federal Student Aid ( FSA ) has removed the limitation preventing borrowers from enrolling in the XXXX or XXXX  Plans. Borrowers may now enroll in XXXX and XXXX until XX/XX/XXXX, when FSA reinstates the limitations listed below : - Borrowers who have already applied for the XXXX or XXXX  Plan before XX/XX/XXXX, but have not had their applications processed yet will still be placed on the plan that they applied for, if approved for that plan. 
- Borrowers with a consolidation loan that repaid a Parent PLUS loan can continue to enroll in the XXXX  Plan ( but not the XXXX Plan ). 

Administrative forbearances were applied to accounts due to the administrative stay in XX/XX/XXXX, for processing XXXX XXXX ( XXXX ) plan applications. Borrowers should expect a lengthy delay in the processing of applications. Further communication will be provided as this develops. 

Effective XX/XX/XXXX, Federal Student Aid ( FSA ) allowed servicers to resume processing applications for XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX plans. 

If you requested and qualify for XXXX, XXXX, or XXXX, we will resume processing your application. 

If you requested and do not qualify for XXXX, XXXX, or XXXX but qualify for XXXX XXXX XXXX XXXX XXXX ( XXXX ), we will continue to hold your application as directed by FSA. 

If you requested XXXX and/or lowest payment, we will continue to hold your application as directed by FSA. 

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

If you have any additional questions, please contact us toll free at XXXX. Our hours are XXXX  XXXX a.m. to XXXX p.m., XXXX  and XXXX  XXXX a.m. to XXXX p.m., XXXX  and XXXX  XXXX a.m. to XXXX p.m. CT. 

Thank you, MOHELA '' My application is still under Application Review on the FSA Status Tracker as of today, XX/XX/XXXX. I am pursuing XXXX XXXX XXXX XXXX and am not eligible for qualifying payments under this involuntary forbearance, although I am currently working for a qualifying employer. Any additional delay in processing my application without a mechanism for payment buybacks would extend the XXXX window and create further financial hardship for me. I appreciate your help resolving this.

Company response to consumer: Closed with explanation