Consumer complaint received 2025-02-20 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with your payment plan
Company: MOHELA
State: MI

Complaint narrative:
" MOHELA has placed borrowers who were already enrolled in the Saving on a Valuable Education ( SAVE ) plan into a forbearance because the court order prevents us from billing you at the SAVE plans monthly payment amounts. MOHELA is in the process of updating borrowers ' accounts to ensure they accurately reflect the 0 % interest while borrowers are in this forbearance. The time in this forbearance will not count toward Public Service Loan Forgiveness ( PSLF ) or Income-Driven Repayment ( IDR ) forgiveness. " - XX/XX/XXXX. 

" You will receive credit toward IDR forgiveness and Public Service Loan Forgiveness ( PSLF ) for the time covered by this forbearance ... " If we have not processed your IDR application by the time this 60-day forbearance period ends ( XX/XX/XXXX ), MOHELA will place your account into a different forbearance. While you are in this new forbearance your interest rate will be set at 0 % ( no interest will accrue ), but you will not receive credit towards IDR forgiveness or PSLF. '' XX/XX/XXXX " Although no payments are due at this time, interest continues to accrue on your loan ( s ) during the forbearance period. You have the option to pay the interest during forbearance. " - XX/XX/XXXX. 

I am charged interest for subsidized ( XXXX ) and unsubsidized ( XXXX ) loans regardless of the statement above. I am complaining that they are accruing interest while they say they are updating my account. Why do they say I will receive credit under PSLF/SAVE for 60 days, but then say a 'new ' forbearance will not give me any credit? Federal Court as of yet under the new administration has NOT ruled any changes to existing law under Biden administration. When they strike down SAVE, I want to be able to pay according to my income and have that amount changed based on what my income is at recertification. Additionally, I have been told by MOHELA that I no longer qualify for IBR ( income based repayment ) and only qualify for ICR ( income contigent repayment ) at a 20 % rate based on discretionary income, as opposed to 10-15 % under IBR. I have consolidated my loans in XXXX and seemingly do not get any credit as I graduated in XXXX. Now it appears they have reset the clock and my loans are due in XXXX under a 25 year plan. The new rate also means that I am responsible for unpaid interest that they are mandating I am responsible for. They may have added the COVID year 'free forbearance '' into the 3 year IBR limit that would then make the interest due under that plan as well. I also am retiring in XXXX and will be receiving Social Security. I do not even believe the govt will change payments based on income when that occurs either. I am exhausted and confused as to why this is happening. I have called them and they refuse to answer the phone after being on the line for 4 hours. Can you help me get some clarity on this situation and have the interest removed permanently set my payments to zero until the hammer drops? 
Please forward this letter with your correspondence to MOHELA so that they can answer some questions you may not be able to.

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