Consumer complaint received 2025-01-03 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: FL

Complaint narrative:
MOHELA has intentionally delayed processing of my Income Based Repayment plan, Pay A You Earn plan, application since XXXXXXXX XXXX XXXX. My account was placed in special forbearance for 60 days in XXXXXXXX XXXX XXXX to allow MOHELA to process my XXXX application, which they neglected to do. On XXXX XXXX I received notice from MOHELA informing me of a due payment by XXXX XXXX. Then, on XXXX XXXX I received notice from MOHELA stating my account was placed in forbearance and no further action was needed. Then, on XXXX XXXX I was notified by MOHELA that I missed my payment that was due on XXXX XXXX. I then filed a complaint to MOHELA describing the above sequence of events, and requesting they rectify the issue by removing the delinquent payment from my account, and to change my account to reflect the forbearance status until they process my XXXX application. I received a reply from MOHELA on XXXX XXXX that appeared to imply my complaint was an application for forbearance, stating that once my application for forbearance was processed the delinquent payment ( XXXX ) would be resolved, seeming to ignore entirely that my account was/should already be in forbearance status. The letter went on to report a completely different amount owed, {$400.00}. compared to the {$1400.00} reported on the website and in previous letters, seeming to imply an XXXX payment plan as opposed to the Standard Plan. 

I attempted a second time to rectify this issue with Mohela via a phone call on XXXX XXXX in which after explaining the above to the representative, I was transferred to an " advanced '' representative where I was placed on hold for almost XXXX hours before opting for the call-back feature. I have yet to have been called back by MOHELA. 

I submitted a second complaint today requesting the XXXX and now XXXX missed payments be removed from my account, that my account be placed into forbearance, and that MOHELA process my XXXX application as soon as possible. 

It appears that MOHELA has already processed my XXXX plan application evidenced by the {$400.00} amount due noted in the XXXX XXXX reply to my complaint, yet continues to send bills for {$1400.00} under the XXXX XXXX plan. 

MOHELA has negligently handled the processing of XXXX applications, mishandled the processing of forbearance, all while hiding behind a federal injunction on the XXXX XXXX  in an attempt to maximize their profit at the expense of myself and other borrowers. This has the potential to significantly impact my credit rating should my account be placed in Default. This also has impacted my ability to make qualifying payments for the XXXX XXXX XXXX XXXX XXXX as I have not been able to make qualifying payments since XX/XX/year>. This constitutes abuse by MOHELA and failure to uphold their obligations through gross negligence.

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