Consumer complaint received 2025-02-04 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: OR

Complaint narrative:
I was automatically enrolled in the SAVE plan from the REPAYE, and there has been a court injunction that have put a stop to payments or qualifying payments to the PSLF program since the court injunction has been in place. I am serviced by Mohela. On XX/XX/XXXX I was given a letter by Mohela that there was a platform change. On XX/XX/XXXX I was given a letter stating I was on the SAVE plan, that I was in forbearance, and that this time does not qualify for credit toward IDR or PSLF. On XX/XX/XXXX I was given a notice there was a repayment schedule change for some of my loans to go to an IDR plan, and some to go to a Standard repayment plan. I made a call on XX/XX/XXXX to ask about this, and was reassured that I was on " forbearance '' and assumed this was the natural next step of being on the SAVE plan, I didn't have a reason at this point not to trust them. On XX/XX/XXXX, I was given a notice there was a repayment schedule change for all of my loans into the Standard repayment plan. I work in a school district and the last week of school I didn't have an availability to call, so I called as soon as I could on XX/XX/XXXX to ask about the repayment schedule change. I was told that this was a Mohela system error due to the platform change on XX/XX/XXXX, and they needed to make the correction to change me from the Standard repayment plan back to the SAVE repayment plan. On this call I was told they would backdate any interest accrual to the platform change on XX/XX/XXXX, and that I would be put back on the SAVE repayment plan, and they would communicate with me in 5-10 business days when this correction would be made. 10 business days came and went, I didn't receive any communication. I called back on XX/XX/XXXX, and was told I was on the SAVE repayment plan, they just can't correct it on my account, or send me any communication because of the court injunction. They assured me that no interest would accrue, I wouldn't owe anything, and my account wouldn't be delinquent or go into default if I didn't pay anything, and that I was in the SAVE forbearance until at least XX/XX/XXXX. They said they couldn't give me a confirmation number, I just basically had to take their word for it. I received an auto-debit notification on XX/XX/XXXX. At this point I trusted them, and didn't have a chance to call with a long wait time until XX/XX/XXXX. On that call, it failed after over an hour of waiting, and I called back. I spent over XXXX hours on the phone waiting. I was connected and told that I was given misinformation on XX/XX/XXXX, that I wasn't on the SAVE plan, I was on the Standard repayment plan and I had a bill due that would auto-debit. I was furious. The customer representative could not cancel the auto-debit. They said that they can't re-process me into the SAVE plan because of the court injunction. The supervisor office was closed by the time I was connected, so they said a supervisor would call me back on XX/XX/XXXX. Over the weekend, I removed my bank from my Mohela account, or so I thought. I didn't receive a call on XX/XX/XXXX, I called Mohela on XX/XX/XXXX and waited for 5 hours before I was connected to a " resolution team ''. I recorded parts of the conversation because I was told they couldn't send me notes. I requested a letter summarizing their internal error and failure to put me back on the SAVE plan. they said that they can attempt to re-process me back onto the SAVE plan after XX/XX/XXXX when my forbearance ends. They also said they cancelled the auto-debit. On XX/XX/XXXX I received the callback from a supervisor from the task that was started from the XX/XX/XXXX call. They said that a letter detailing the error had been drafted and sent to me, I received it, and it does not include the admission of fault by Mohela, nor their plan for how to correct their error and put me back on the SAVE plan with interest backdated. I requested an ACH company ID so that I can issue a stop payment from them for the next 6 months on my bank, they put in that request and we scheduled a callback to ensure I get that ACH number and to review the letter. I never received a call back. I called after XX/XX/XXXX as soon as I could on XX/XX/XXXX. I spent 8 hours on the phone waiting to be connected to someone. At which point I was told I couldnt be re-processed onto the SAVE plan due to the court injunction. I was told I was on the Standard repayment plan, and my account would become delinquent if I didnt pay. I was told that I could elect to be put on a processing forbearance. There was no admittance of fault, or resolution offered for Mohelas error of putting me unauthorized onto the Standard plan, and what they were going to do to correct this error and put me back on the SAVE repayment plan. The call was dropped when they said they were going to put me in a processing forbearance, and connect me to a supervisor.

My complaint is after reviewing the AFT lawsuit, and a report put out by 50 of our Senators and Congressmen, what I have been the victim of seems like an intentional scheme to get customers on a high repayment plan. My fear is that I won't be able to be put back on the SAVE repayment plan because it will no longer be an option. I don't want to be put on a different IDR plan. I am okay with not getting credit towards PSLF at this time in exchange of continuing to be on the SAVE forbearance with no interest. I am about to go on maternity leave and do not know what my reportable income will be, and would prefer to be on the SAVE forbearance because Federal Student Aid has stated on their website that those in the SAVE repayment plan will not have to go into repayment earlier than fall XXXX, and re-certify their income no earlier than XX/XX/XXXX. I want to be back on the SAVE plan. If they have had a lawsuit, and a report for over a year alleging this same misconduct, it is intentional.

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