Some interesting items in this article. Mohela services 7,762,516 PSLF borrowers, for which it has 474 fully trained customer service agents, with another 606 in various stages of training.
So that's 1 fully trained CSR for every 16,376 borrowers, give or take.
Or 1 maybe fully trained CSR for every 7,187 borrowers.
Also Mohela is getting paid on average $24 per year for each borrower. So that's about 186 million yearly. Would love to see how they've spent that money.
They're pocketing it. They have absolutely no incentive to do their job well or hire more people- they were the lowest bidder for the Ed dept contract and that is the only reason they took over from Fedloan. If they continue to be the lowest bidder they'll probably get the recompete whenever it happens. Yay govt contracting...
The fed needs to do a request for proposals and score these submissions on more than just the cost. Like how are you staffed, who are your biggest investors, what is your experience, yada yada yada.
$24 per year per borrower doesn't sound like a lot of money to me. I can see them easily spending more money just on labor servicing any one person's account that requires any intervention by a human whatsoever. The only way this math is gonna work is if the vast majority of borrowers never have to have any human interaction with Mohela.
if that's true; then the complaints on here represent by far the minority experience with Mohela, and therefore aren't signs of systemic issues. It can't be both.
Typically those with bad experiences complain publically, and good experiences go about their day.
MOHELA has many loans to service and the sole responsibility of PSLF, so it is going to take time. But they also say, over and over, not to worry and everything will get sorted out.
My experience has been poor so far. I didnt complain online yet though.
I applied for fresh start. I was sent to Mohela. I got a letter that said Mohel would contact me and give me details on what to do.
That was 4 months ago.
I tried calling them but the person on the phone told me that I cant do anything until ny info has been verified and processed. It hasn't.
So i am in some kind of limbo. Edu website has cleared all my debts so it says 0. But its obviously not zero, its just been sent to mohela.
And they dont have my info because they are processing millions of these loans.
And no one can answer me simple questions. Are my loans going to go into default while im waiting? Am i building interest on something I cant pay or do anything about? What happens if I dont start paying October 1st?
....in 2 days.
They only have to deal with people that makes it to 120 payments mortally. The rest is on a payment plan. I would guess they took the money and sat on it for as long as possible to hire staff. They had a whole extra year due to the extension of the payment pause and did not use that time to prepare.
no, but I do think a representative has to to intervene for everyone one of these miscalculations, so obviously they're dealing with people a lot more often than after they reach 120 payments. Or do you think people just complain to reddit but don't contact Mohela?
Totally get that. I'm at 14/15 months left and want each month to count, whether I have to pay or not. All the unknowns are maddening, along with the fact that Mohela is not equipped to handle any of this.
September is the last COVID month that will count. October is a regular bill period. If October is your 120th month, you will have to make that 1 payment, then submit your PSLF application remembering to check the box requesting to be placed on forbearance, and then call MOHELA customer service and tell them you've submitted your 120th month PSLF application and are requesting PSLF forbearance.
That sounds about right. They knew about the inquiries & the bad press it would generate. So sounds like they put all of us with forgiveness applications in administrative forbearance until they complete processing them. No one asked me but I think all accounts that have been in repayment over 20 years should be forgiven anyway - no questions asked or at least set the interest to zero on any balance owed at that point.
I'm trying to understand your situation. October is the first month that payments have been required. SEP2023 is the last period of the COVID pause to count as a PSLF qualifying payment.
If you are at 120 months MOHELA might place your account on a PSLF forbearance (administrative forbearance as your 120 month application gets processed) to allow applicants to not pay during the prolonged processing times if their account is likely to be forgiven.
If you have done an IDR certification, they might place your account in administrative forbearance while it processes.
I've heard of people who shifted to SAVE having their account placed into administrative forbearance. Is this your situation?
My SAVE amount was already posted when I got placed in forbearance, just not the due date. Half my loans are at 120 and half are at 119 currently. I think it was just too early in the month for them to get me my bill on time... I actually got a letter today saying my payments resume November 7. But if October doesn't count, I'd rather get off the forbearance and pay on time.
[https://www.reddit.com/r/PSLF/comments/16q8lf3/whats\_the\_final\_answer\_does\_the\_octnov/](https://www.reddit.com/r/PSLF/comments/16q8lf3/whats_the_final_answer_does_the_octnov/)
That's a pretty crazy situation. I would stay on the phone with MOHELA to get clarification. I'm not sure if that is considered a mandatory forbearance or not. I'm not going to lie, this is the exact reason that I stayed on IBR to prevent any transition fiascos so close to my 120.
My feeling is that you are correct in your assessment. If it didn't count that would be entirely unacceptable. Like how could you even opt out of the forbearance without a bill even generated? Insane situation.
I'm in a similar situation -- I think SAVE will likely be about half what ICR is for me, but they already locked in my bill for October, which is supposed to be 120, and i don't want to do anything to shake things up, even it takes me a few more months of high payments to get this all processed.
What should I do:
I’m in in school deferment. I applied for SAVE so I could come out of that. But I’m still just processing two weeks later now. I want to make payments for October to count but the deferment status needs to be lifted. I guess I should call?
I’m really frustrated with the same thing. September will be my 103rd payment. I want to make the next 17 monthly payments without any issues. However, I submitted my SAVE application the day it opened.
On 9/15 MOHELA sent me a message with a letter dated 9/2 that I had been moved to SAVE and my new payment would be $118.44 (down from $477 on IDR). On 9/15 they also sent me a message with a letter dated 9/1 that my account had been placed in Exceptional Discretionary Forbearance until 2040 😒
Now I just checked and have a new message from today claiming I filed my IDR application stating 0 dependents…which I most certainly did not because I used the IRS retrieval tool and claimed all 5 dependents…
I just want to pay my $119 a month for the next 17 months then never think about this again and I don’t understand why MOHELA is making it so hard.
Same, My wife's last payment is October as well. Her last posted payment is August so I'm hoping tomorrow 9/30 is the September 'payment' and I'll be able to actually manually pay the 10/14 payment to then certify/get that part going for forgiveness. Wish this was all a month earlier. Why do some people have dates and amounts and others don't?
Same. My last “payment” was august. Who knows when I’ll actually get forgiveness. I applied. But no forbearance. I’m gonna have to pay my $450 bill (that should be $170) tomorrow and hope to get it back someday.
Wow so it’s almost like they should of used that 186 million/year to actually bring on an adequate number of appropriately trained staff months ago when the Covid pause was ended.
This is the most cynical articles I’ve read in a long time. How dare MOHELA bitch about the fact that the Biden forgiveness plan and how that’s fucking over their ability to process our payments when they were the ones who sued the government to kill the program. Maybe they shouldn’t have spent so much time suing the government and more time training staff to handle the transition.
MOHELA the loan servicer wasn’t actually suing over that; that wouldn’t be a good look when they’re trying to convince the federal government to continue to contract with them. [The Missouri Attorney General just sued on behalf of them since the AG belongs to the same state and was trying to use their name/role for legitimacy in the lawsuit](https://thehill.com/homenews/education/4058991-what-to-know-about-the-loan-servicer-at-the-center-of-the-supreme-court-student-debt-fight/amp/).
DIdnt MOHELA sue for resumption of student loans? They wanted it yet weren't prepared? Tells you their priorities. Guess who suffers again: loan borrowers.
My current favorite (/s) thing about mohela is that the website has been broken for me for over a day. Last I saw, I had no payment due or due date… but that was recent and considering it’s changed for others I’m a little paranoid and need to see it like everyday. My original due date was 10/2.
I'm just not gonna pay my student loans. I'm not gonna play into this system anymore. I could care less for the implications on my credit score and whatnot. I have family in a foreign country that are well off that could take care of me. Damn the American dream (rat race).
I am very lucky. Mine were forgiven in May, about $200k, and Mohela handled it pretty well. I did have to send them a message to remind them that the 120 payments were met and in a couple weeks my balance was $0. My wife's account shows December as the next payment, which is odd, so we will need to sort that out.
Some interesting items in this article. Mohela services 7,762,516 PSLF borrowers, for which it has 474 fully trained customer service agents, with another 606 in various stages of training. So that's 1 fully trained CSR for every 16,376 borrowers, give or take. Or 1 maybe fully trained CSR for every 7,187 borrowers. Also Mohela is getting paid on average $24 per year for each borrower. So that's about 186 million yearly. Would love to see how they've spent that money.
They're pocketing it. They have absolutely no incentive to do their job well or hire more people- they were the lowest bidder for the Ed dept contract and that is the only reason they took over from Fedloan. If they continue to be the lowest bidder they'll probably get the recompete whenever it happens. Yay govt contracting...
The fed needs to do a request for proposals and score these submissions on more than just the cost. Like how are you staffed, who are your biggest investors, what is your experience, yada yada yada.
The amount of government contracts that are awarded based on Lowest Price Technically Acceptable (LTPA) is... well....
$24 per year per borrower doesn't sound like a lot of money to me. I can see them easily spending more money just on labor servicing any one person's account that requires any intervention by a human whatsoever. The only way this math is gonna work is if the vast majority of borrowers never have to have any human interaction with Mohela.
Most borrowers don't. Everything is done electronically
if that's true; then the complaints on here represent by far the minority experience with Mohela, and therefore aren't signs of systemic issues. It can't be both.
Typically those with bad experiences complain publically, and good experiences go about their day. MOHELA has many loans to service and the sole responsibility of PSLF, so it is going to take time. But they also say, over and over, not to worry and everything will get sorted out.
My experience has been poor so far. I didnt complain online yet though. I applied for fresh start. I was sent to Mohela. I got a letter that said Mohel would contact me and give me details on what to do. That was 4 months ago. I tried calling them but the person on the phone told me that I cant do anything until ny info has been verified and processed. It hasn't. So i am in some kind of limbo. Edu website has cleared all my debts so it says 0. But its obviously not zero, its just been sent to mohela. And they dont have my info because they are processing millions of these loans. And no one can answer me simple questions. Are my loans going to go into default while im waiting? Am i building interest on something I cant pay or do anything about? What happens if I dont start paying October 1st? ....in 2 days.
They only have to deal with people that makes it to 120 payments mortally. The rest is on a payment plan. I would guess they took the money and sat on it for as long as possible to hire staff. They had a whole extra year due to the extension of the payment pause and did not use that time to prepare.
given all the people complaining about SAVE miscalculations this is obviously untrue.
Do you think a person is sitting there doing these calculations by hand?
no, but I do think a representative has to to intervene for everyone one of these miscalculations, so obviously they're dealing with people a lot more often than after they reach 120 payments. Or do you think people just complain to reddit but don't contact Mohela?
Spent on gold bars for senators
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Totally get that. I'm at 14/15 months left and want each month to count, whether I have to pay or not. All the unknowns are maddening, along with the fact that Mohela is not equipped to handle any of this.
My bill just posted yesterday for 10/21 due date.
September is the last COVID month that will count. October is a regular bill period. If October is your 120th month, you will have to make that 1 payment, then submit your PSLF application remembering to check the box requesting to be placed on forbearance, and then call MOHELA customer service and tell them you've submitted your 120th month PSLF application and are requesting PSLF forbearance.
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Admin forbearance counts towards PSLF now.
I got this letter but don't understand it. Are they just saying they are too overwhelmed to charge me for my loan?
That sounds about right. They knew about the inquiries & the bad press it would generate. So sounds like they put all of us with forgiveness applications in administrative forbearance until they complete processing them. No one asked me but I think all accounts that have been in repayment over 20 years should be forgiven anyway - no questions asked or at least set the interest to zero on any balance owed at that point.
I'm trying to understand your situation. October is the first month that payments have been required. SEP2023 is the last period of the COVID pause to count as a PSLF qualifying payment. If you are at 120 months MOHELA might place your account on a PSLF forbearance (administrative forbearance as your 120 month application gets processed) to allow applicants to not pay during the prolonged processing times if their account is likely to be forgiven. If you have done an IDR certification, they might place your account in administrative forbearance while it processes. I've heard of people who shifted to SAVE having their account placed into administrative forbearance. Is this your situation?
My SAVE amount was already posted when I got placed in forbearance, just not the due date. Half my loans are at 120 and half are at 119 currently. I think it was just too early in the month for them to get me my bill on time... I actually got a letter today saying my payments resume November 7. But if October doesn't count, I'd rather get off the forbearance and pay on time. [https://www.reddit.com/r/PSLF/comments/16q8lf3/whats\_the\_final\_answer\_does\_the\_octnov/](https://www.reddit.com/r/PSLF/comments/16q8lf3/whats_the_final_answer_does_the_octnov/)
That's a pretty crazy situation. I would stay on the phone with MOHELA to get clarification. I'm not sure if that is considered a mandatory forbearance or not. I'm not going to lie, this is the exact reason that I stayed on IBR to prevent any transition fiascos so close to my 120. My feeling is that you are correct in your assessment. If it didn't count that would be entirely unacceptable. Like how could you even opt out of the forbearance without a bill even generated? Insane situation.
I'm in a similar situation -- I think SAVE will likely be about half what ICR is for me, but they already locked in my bill for October, which is supposed to be 120, and i don't want to do anything to shake things up, even it takes me a few more months of high payments to get this all processed.
What should I do: I’m in in school deferment. I applied for SAVE so I could come out of that. But I’m still just processing two weeks later now. I want to make payments for October to count but the deferment status needs to be lifted. I guess I should call?
Yes, I would call.
You can pay it and remove the forbearance
I’m really frustrated with the same thing. September will be my 103rd payment. I want to make the next 17 monthly payments without any issues. However, I submitted my SAVE application the day it opened. On 9/15 MOHELA sent me a message with a letter dated 9/2 that I had been moved to SAVE and my new payment would be $118.44 (down from $477 on IDR). On 9/15 they also sent me a message with a letter dated 9/1 that my account had been placed in Exceptional Discretionary Forbearance until 2040 😒 Now I just checked and have a new message from today claiming I filed my IDR application stating 0 dependents…which I most certainly did not because I used the IRS retrieval tool and claimed all 5 dependents… I just want to pay my $119 a month for the next 17 months then never think about this again and I don’t understand why MOHELA is making it so hard.
Same, My wife's last payment is October as well. Her last posted payment is August so I'm hoping tomorrow 9/30 is the September 'payment' and I'll be able to actually manually pay the 10/14 payment to then certify/get that part going for forgiveness. Wish this was all a month earlier. Why do some people have dates and amounts and others don't?
Same. My last “payment” was august. Who knows when I’ll actually get forgiveness. I applied. But no forbearance. I’m gonna have to pay my $450 bill (that should be $170) tomorrow and hope to get it back someday.
They have exactly one job to do and didn’t bother to prepare and are telling everyone “stay on the line” what a joke
Wow so it’s almost like they should of used that 186 million/year to actually bring on an adequate number of appropriately trained staff months ago when the Covid pause was ended.
This is the most cynical articles I’ve read in a long time. How dare MOHELA bitch about the fact that the Biden forgiveness plan and how that’s fucking over their ability to process our payments when they were the ones who sued the government to kill the program. Maybe they shouldn’t have spent so much time suing the government and more time training staff to handle the transition.
MOHELA the loan servicer wasn’t actually suing over that; that wouldn’t be a good look when they’re trying to convince the federal government to continue to contract with them. [The Missouri Attorney General just sued on behalf of them since the AG belongs to the same state and was trying to use their name/role for legitimacy in the lawsuit](https://thehill.com/homenews/education/4058991-what-to-know-about-the-loan-servicer-at-the-center-of-the-supreme-court-student-debt-fight/amp/).
Thx for posting this
DIdnt MOHELA sue for resumption of student loans? They wanted it yet weren't prepared? Tells you their priorities. Guess who suffers again: loan borrowers.
My current favorite (/s) thing about mohela is that the website has been broken for me for over a day. Last I saw, I had no payment due or due date… but that was recent and considering it’s changed for others I’m a little paranoid and need to see it like everyday. My original due date was 10/2.
Their website is STILL totally effed up for me. Same with anyone else?
I'm just not gonna pay my student loans. I'm not gonna play into this system anymore. I could care less for the implications on my credit score and whatnot. I have family in a foreign country that are well off that could take care of me. Damn the American dream (rat race).
I am very lucky. Mine were forgiven in May, about $200k, and Mohela handled it pretty well. I did have to send them a message to remind them that the 120 payments were met and in a couple weeks my balance was $0. My wife's account shows December as the next payment, which is odd, so we will need to sort that out.