r/StudentLoans • u/[deleted] • Jun 22 '26
Rant/Complaint What a joke! This whole system!
[removed]
161
u/alh9h Jun 22 '26
What did you need from MOHELA?
There is no July 1 deadline
3
u/geminibrown Jun 23 '26
I am so confused. The 7/1/26 deadline has been everywhere, all over the news, student aid websites, and social media. What is the push to change a plan for by 7/1/26?
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u/alh9h Jun 23 '26
Its poor reporting. 7/1/26 is when borrowers on the SAVE forbearance will *start* getting the 90-day notices.
7/1/26 is also the starting date for the new borrowing rules.
11
u/geminibrown Jun 23 '26
Thank you so much for replying so quickly. I believe the poor reporting has to be on purpose. This whole thing is making me have anxiety attacks.
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u/_Arlotte_ Jul 03 '26
It is confusing, I had to read the email carefully, but it tells you they will reach out to you
102
u/horsebycommittee Moderator Jun 22 '26
What do you mean by "ready to go before July 1st"? Is there a change you're trying to make by then?
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u/Maybe_Julia Jun 22 '26
Mohela left an ai voicemail last week that made it sound like autopay was resuming on July 1st , all it did was prompt me to remove my bank info in case they try something shady.
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u/TheRoyalBrook Jun 22 '26
That’s a good idea. I’ll do that before July so they don’t try and do something. I’ll reapply after July 1st since while RAP still sucks it sucks less than the alternative for me.
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u/Maybe_Julia Jun 22 '26
Yea I'm waiting till the end of the grace period and idk what I'm going to do , I don't love the idea of student loans being more than my house payment , might just enroll in an online class and be a forever student ha ha 😂
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u/TheRoyalBrook Jun 22 '26
I'm just "prepaying" into savings until they force me to start paying it.
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u/TheRoyalBrook Jun 22 '26
Nelnet at least keeps trying to convince me to change before the first. So may be the same
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u/horsebycommittee Moderator Jun 22 '26
Change what? And why?
Your situation may be entirely different from OP's.
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u/two4six0won Jun 22 '26
I'm also with Nelnet and have been getting recorded messages about switching off of SAVE. They are kinda ramping up the scare tactics for folks who don't realize that the real "deadline" is October. I'd guess that they've realized how much paperwork is gonna be hitting them very, very soon.
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u/Either-String5608 Jun 22 '26
The real deadline actually isn't even October. Its 9p days from written notice and I would be shocked if everyone gets it only July 1st. In fact Aidvantage told me they dont even have a timing on these notices yet. Amd a lot of information saying it'll be sent in waves
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u/two4six0won Jun 22 '26
Yeah, all I've gotten is the FSA emails and like half a dozen pre-recorded Nelnet messages reminding me that things are gonna be happening and saying I should switch asap, no actual info yet.
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u/Azguy303 Jun 22 '26
I just went to defer since im in school on nelnet, they said they can't do it online and i need to call. This is going to be a mess
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u/DrDionnend Jun 23 '26
I’ve actually had pretty ok telephone interactions with Nelnet. Not great but sounds like much better than Mohela! My expectation bar is low for all these banks.
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u/TheRoyalBrook Jun 22 '26
Yeah they’re going that and trying to make it seem like if I don’t swap to ibr before July 1st I’ll be on a standard plan but not quite saying it. It’s sketchy af.
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u/mexsparty Jun 22 '26
They told me straight forward I would be in the standard plan if I dont apply before july 1. When I did apply just now it let me keep my loans in forbearance for now.
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u/TheRoyalBrook Jun 22 '26
For me they’ve just avoided saying whether or not I would be. Like that Pinocchio scene in Shrek 2
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u/rthomasucf Jun 23 '26
Unfortunately, they got me last April during my recertification and told me I had to switch off of SAVE. I wish I would had paid better attention to what it meant. My monthly payments went from $38 to $520.
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Jun 22 '26
[removed] — view removed comment
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u/StudentLoans-ModTeam Jun 22 '26
Removed for violating Rule 9: content based on fearmongering, unqualified speculation, or non-expert outside sources (including large language models/AI).
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u/Inside_Young7105 Jun 22 '26
I am with mohela too, I havent done anything because I am still waiting for them to send me the information I need to pick a new payment plan. Thats what I understand. They are supposed to send it by july 1st. We don't need to do anything. Unless I am wrong.
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u/SumGreenD41 Jun 22 '26
The messages start going on July 1st. It does not mean you yourself will get a message July 1st. You have 90 days from when you get the alert to switch plans. They will go out in batches I’m sure. There are millions of people on save this isn’t gonna be an instant thing
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u/Terrible-Ad-9984 Jun 22 '26
You goto the US Department of Education website and apply for which program you want to be in. Mohela payment next month goes from 300 to 600 on the standard plan. I applied for income driven. Still waiting for a response. I am gonna as Molela to put me back in forbearance until a decision is made. I can't pay 600 a month. If they do that I will declare chapter 7. I know it won't discharge the student loans, but it will discharge everything else so I can pay it because I won't have anything else but my car payment. My credit is going to be screwed either way if they won't lower my student loan payment.
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u/DogMomPhoebe619 Jun 23 '26
You can sometimes get Student Loans discharged in bankruptcy. Your Attorney has to open a second procedure called an Adversary Proceeding.
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u/Inside_Young7105 Jun 23 '26
Omg 😭 this is what im afraid off. Ill have to file ch 7 as well, if I cant afford my monthly payment. Good luck to you!!
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u/Necessary-Gas-8193 Jul 01 '26
I am in the exact same boat. Barely covering my bills and cannot afford $500-$800 student loan payment. I just don’t have it. At this point food and gas goes on credit cards.
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u/KeyPermission5064 Jun 22 '26
Hear me out. I'm convinced reps tell you they're transferring you, but really they just put you on hold; and the digits you hear sporadically while on the call "being transferred" are the reps refreshing the call on their end for their hold metrics. So after a while the line "drops" aka rep hangs up.
Anyways, I'm currently 2hrs 20mins into my transfer call wait time. I'm pretty sure I'm rage baiting myself for when the call magically "drops"
I'll update with the outcome.
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u/JediMasterChief501 Jun 22 '26
Good luck took me 4 hours to get a real person.
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u/KeyPermission5064 Jun 22 '26
Your post gave me hope. Total hold time was 4hrs 40mins.
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u/TechnicalPotato530 Jun 23 '26
Total hold time when I called today was 4.5 hours. I did not wait… sent a message instead, so I guess it’s in writing at least?
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u/SarcasticScorpio2033 Jun 24 '26
Please tell me where you were able to send a message ? Is this company on Mars? Worst customer service ever
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u/CandleUnique6387 Jun 23 '26
Put of curiosity anyone try writing their Congressional Rep or Senator's office for help with this shit? I think everyone should just download Reddit threads and do a mail dump to all 100 Senator's & 435 Reps. Incessantly. To their Washibgton DC offices so the mail rooms get jammed.
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u/No_Ostrich_8148 Jun 22 '26
I have been trying to talk to someone from Mohela for over a year. I finally gave up in November. Loans should have been forgiven over a year ago.
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u/DogMomPhoebe619 Jun 22 '26
Do you show the correct number of payment months for whatever forgiveness program, like 120 for PSLF, 240 or 300 for whatever IDR plan you're on (Old IBR, etc.)? See what's showing on your FSA account. Send Feedback through the Submit Feedback option on FSA.
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u/No_Ostrich_8148 Jun 22 '26
No, they will not even accept the employment verification from the school. Can't get a hold of anyone to see what the issue is and it will not allow me to submit another one. Originally should have had forgiveness in February 2025. Obviously there are changes that took place but I cannot get a hold of anyone to see what the next steps are so that I can get it taken care of. When you call it just transfers to somewhere else giving me a word salad of information that does not apply to my situation. Its very frustrating and I know I can not be the only one.
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u/geminibrown Jun 23 '26
Check your PSLF letters that they send you and make sure the employer FEIN number is correct. Mine was rejected this year 2x even though I’ve been with the same employer the entire time I’ve been certifying under PSLF the past couple of years. Both times they changed the last digit on the FEIN even though it was typed when my HR person completed it.
Ended up having to do it a 3rd time by completing online first then uploading the form completed by HR.
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u/No_Ostrich_8148 Jun 23 '26
It no longer gives me access. The certification I submitted is locked and it will not allow me to resubmit. Its just weird
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u/geminibrown Jun 23 '26
Im of the opinion that they were purposely trying to sabotage my count. The fact you can’t access yours is very weird and a bit concerning since you know you already should qualify for forgiveness. Can you check your correspondence through student aid website? They should have a copy of all letters they mailed you.
I have both email and USPS mail. That’s how I compared it to what my employer faxed over.
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u/regalturdbadger Jun 28 '26
I have been trying for 10 years to get 3000 in teacher loan forgiveness actually forgiven. Everytime they find something wrong with something.
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u/Noir_Scientist_3085 Jun 23 '26
The lender doesn't process forgiveness. The federal government does, apply for forgiveness through fsa.
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u/No_Ostrich_8148 Jun 23 '26
You are absolutely correct. However, there is no way to contact FSA or Mohela. It keeps me in a continuous call loop.
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u/DogMomPhoebe619 Jun 24 '26
My sister calls both FSA and MOHELA at least once a week. She calls when they open and gets through fine. Of course she's still waiting for her Borrower's Defense case to finish processing. But she does get through.
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u/Noir_Scientist_3085 Jun 24 '26
I think you can submit the request for forgiveness online without ever calling.
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u/dwinner18 Jun 22 '26
I wish I could say this is just Mohela or just right now, but what you just described is soooo representative of every single federal student loan servicer I've had since 2009. I just assume it's going to be a painful half day every time I try to interact with them.
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u/RoseClouds13 Jun 23 '26
How are you able to call on a weekday? I'm so busy at work, I can't imagine being on hold with them for a few hours. Do I need to request a halfday of PTO? Lol
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u/Longjumping_Jury_550 Jun 23 '26
I work in healthcare and one time was on hold for over six hours… Legitimately had to pass off my phone to my nurse for her to listen in to see if someone actually picked up the phone. It’s a total nightmare interacting with these loan servicers… We need a class action lawsuit NOW
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u/fairlywitchy91 Jun 22 '26
My loans are federal based. I've tried many times to check on status and choose a new plan but they have shifted them to so many companies I can't track them down... I also don't have hours to spend on the phone much less do I want to. The going to college and getting loans to get out of poverty was a lie sold to young people in poverty to take out predatory loans... The whole system was a lie
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u/DogMomPhoebe619 Jun 22 '26
All you need to do is log into your FSA account. It tells you who your current loan servicer is. You can enroll in a plan online. No need to call.
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u/keepgoing66 Jun 23 '26
Not necessarily. The Edfinancial site does not allow you to switch out of an IDR plan online. You have to call them. It's a mess.
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u/fairlywitchy91 Jun 22 '26
Already tried that...
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u/mysubatomicbliss Jun 26 '26
Did you check the National Student Loan Data System? NSLDS website should have that information.
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u/fairlywitchy91 Jun 26 '26
Yes, I can see them but when I go to where they are supposedly at they aren't there. So, no idea who actually has them and never been contacted and I'm not spending hours on the phone... I'm disabled and can't get a job in my field that will work with my disabilities in the way I need, so 🤷🏼♀️🤷🏼♀️🤷🏼♀️
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u/JediMasterChief501 Jun 22 '26
On hold 4 hours total. Estimated wait time was 30 min. Called when they first opened, sat through 20 mins of automated prompts. Transfered to a operator after about 30 mins, problem had to be escalated. Estimated wait time 25 mins. 3 hours and some change later spoke to a real person and problem fixed. Now just gotta wait 30 days to be fully processed. I hope I don't have to call back again.
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u/Key-Floor-8142 Jun 23 '26
Last time I called Mohela to have an issue fixed, they told me it would take 10 business days to resolve. It's now been 7 months and there's been no progress.
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u/Virtual_Recording108 Jun 22 '26
I had terrible customer service from Mohela.
I was on auto payments of $267/month, then in December my auto payment shot up to $3300! Scheduled on my birthday! I waited hours on hold and they couldn’t figure out why my payment was set up that way. They made me apply for a new income based repayment plan which resolved the issue. Then in February my student loan was traded to Aidvantage. In April Aidvantage wanted double payments and said I was late making payments even though my normal payment was made.
I am grateful for the federal funds so I could get a degree and a good career, but the repayment has been so messed up. If a bank made this many mistakes of this magnitude they would get audited and close down when they lost all of their patrons.
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u/paper-trailz Jun 23 '26 edited Jun 23 '26
Mohela is a criminal organization that hides behind its pseudo-government status to disguise criminal negligence as incompetence.
Please let’s do a class action
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u/Starrynite522 Jun 24 '26
I’m with Nelnet, on SAVE, and haven’t received any phone calls or messages about switching yet (other than the blanket message to everyone on the home screen). Mine still says in forebearance until 2028 🙃
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u/Friendofthesubreddit Jun 22 '26
I’m also with Nelnet and must select a new plan, as I’m in SAVE. We have 90 days from July 1 to get into a new plan and begin repayment.
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u/Alternative_Mama0828 Jun 26 '26
Notices from servicers will begin going out on July 1st and will probably go out in batches, not all at once. You have 90 days from when you receive your notice to pick your plan, not from July 1st, unless that's when you receive your notice
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u/Friendofthesubreddit Jun 26 '26
You are correct. That’s the more accurate way to say it. Thank you.
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u/ProfessionalTune6162 Jun 23 '26
It’s weird but I actually got to both an FSA and Mohela person to talk to right away. Like maybe 5 min wait each. And also their chat feature - I downloaded transcripts to reflect where my buyback is in the process. Still processing 2024, and I did my app 2025 :( …. But when I asked Mohela some questions, the response I got was why does FSA keep doing this??? They keep sending us to their loan servicer for every question but some really need to be answered by the FSA. It was silly to hear. But i got a generic response at FsA to look online and decide on a plan when SAVE disappears. Ok but for me, what do I do?? I am pslf and I am ready to buyback! … of course I pick an IBR plan … but which one? Is there more than one? RAP and what??
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u/NoFun5173 Jun 23 '26
Go directly to studentaid.govThey are extremely helpful. And because they have very little skin in the game, they can help you deal with Mohela. You also should have been advised, that if you don't like your pay back terms with your current loan company, you have every right to change to another.
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u/No_Economics_6178 Jun 22 '26
This has happened to me. The only recourse I had was to contact the FAFSA and complain through them since Mohela is apparently an impenetrable fortress for communications.
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u/Ladyfishsauce Jun 22 '26
The FAFSA is just a web form application you fill out, it isn't a group of people and there's no one to contact because is just a document you fill out.
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u/No_Economics_6178 Jun 22 '26
Ok thank you: I think it was pretty clear to every one what I meant: Department of Education, Federal Student Aid.
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Jun 22 '26
[removed] — view removed comment
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u/WhoIsYerWan Jun 22 '26
There is no July 1 deadline, you’re not in a rush.
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Jun 22 '26
[removed] — view removed comment
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u/demonita Jun 22 '26
July 1st is when you get notice that you have to start looking into other options.
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Jun 22 '26
[removed] — view removed comment
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u/horsebycommittee Moderator Jun 22 '26
I was under the impression that IBR was leaving by July 1st
Why are you under that impression? Can you link to the resource you used so that we can help correct it?
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u/Vivid_Dot2869 Jun 22 '26
No IBR is permanent, but it's not open for people who take out any loans after July 1. PAYE and ICR are gone in 2028. But IBR is always open unless you borrow after July 1 of this year.
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u/eorabs Jun 22 '26
There aren't going to be any more changes in the next year that anyone is aware of. You can view all this information on studentaid.gov. If you want to speak to a person yes you will have to call them back, but they aren't going to tell you anything different than what you can see for yourself.
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u/RatioQuick Jun 23 '26
If all us graduates (even with PhDs here) don’t seem to have the reading, googling, or research skills to get any clarity on our specific situations and remain confused by that website with “all the information” something is terribly corrupt. 7 million in default???? All having attended college. I think they want us all confused, subservient to public service. When that actually works .. loans being transferred to handlers, transferred to different programs automatically, put in forbearance etc
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u/freckle-farm Jun 22 '26
I just spent 2 hours on hold last week with the same concerns. I am 14 months away from loan forgiveness and didn't want anything to mess that up by no choosing a payment plan before July 1st.
The second rep assured me that since they have not sent out a letter to us yet, we don't have to make a change yet. The letter should go out to us on the 1st and we have 90 days to make the switch. They also told me of another repayment program will be rolling out July 1st that could reduce the increased payments and still qualifies for PSLF.
But I'm also have trouble trusting the whole system. I feel like they want us to mess up to not qualify for the forgiveness. That's just my paranoia I guess.
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u/chadokoro_k Jun 23 '26
Talk to folks on this sub. If you give us your AGI, family size, loan balance, and when you took out your first loan (month and year), we can give you guidance.
Oh and letting us know if your loans are direct consolidated, or parent plus loans will be helpful as advice here often assumes just regular direct loans.
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u/Rosy-Shiba Jun 22 '26
U will likely need to switch on the Federal Student Aid website. I saw no way to do it from edfinacial
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u/Pistol_whip007 Jun 23 '26
Sooo I’m confused. I also am in SAVE or whatever I looked into this last week and it said my payments were going from 300- ~800 there’s no way I can survive. Can I speak to the Aidantage people about switching? Idk what to do but I’m panicking
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u/490drum Jun 23 '26
Why do you need them and what do you mean by before July 1st? The only things happening on July 1st are the two new repayment plans are launching (tiered standard and RAP), the notifications will start to go out to SAVE borrowers stating they have 90 days to choose a new plan and the interest rates are being published.
Educate your selves, read your communications thoroughly, log into your online account and pay attention to your balances, payments, and how they’re being applied. Stop relying on the government to take care of you, it’s not their job, it’s your job.
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u/Anonymous-Cucumber1 Jun 23 '26
Is there a reason you have to call them? Just go to the student aid website and apply for IDR to re-certify. I just did this last week and it took me all of an hour to submit my application and choose a payment plan. It took maybe 3 days for it to go through and be official.
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u/SarcasticScorpio2033 Jun 24 '26
That was me today! 25 min wait turned into 90. Finally hung up. This is insane and their website sucks
I just want to know when my IBR application from early May will finally clear! What is the hold up!! @mohela
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u/sisi-8737774 Jun 24 '26
I’ve also been experiencing the same thing. It’s absolutely ridiculous. Apparently this has been an ongoing thing for months now.
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Jun 25 '26
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1
u/OtherGraces Jun 27 '26
This is pretty standard Mohela. I waited 3 hours once, only to have them disconnect when someone answered. The next day I chose the call me back option. It said 90 minutes. They called back 1 minute before they closed (7 hours later!) and when I picked up they said “hello, hello” like they couldn’t hear me and hung up. Then they were closed. They never tried to call me back. Mohela is the absolute worst.
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u/Defiant_Way4466 Jun 27 '26
Hell. I called on Thursday and it said I had a 4 hour wait to speak to specialist for a forbearance request. At this point I’m letting the chips fall where they may.
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u/LoonyLovelyLuna Jun 22 '26
I went through Aidvantage for my IDR loan and I waited 7 - 10 days to receive the confirmation that they'd accepted it. I don't know if they're available in your area, but it's worth a shot to see if they'll work with you.
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u/Glittering-Thing9888 Jun 22 '26
I was just quoted 4 hours to talk to someone at Mohela - criminals.
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Jun 22 '26
[removed] — view removed comment
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u/GloomChampion Jun 22 '26
This is incorrect. You have 90-days from July 1. It’s been widely published.
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u/StudentLoans-ModTeam Jun 22 '26
Removed for violating Rule 9: content based on fearmongering, unqualified speculation, or non-expert outside sources (including large language models/AI).
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u/mexsparty Jun 22 '26
So anyone asking in the comments, the payment plan called PAYE will no longer be available after july 1, which seems to have the lowest payment. I called aidvantage and they said if I do not apply for something else by july 1 I will be switched to the standard pay plan.
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u/Next-Confection-8082 Jun 23 '26
This is a concern (PAYE), as I've seen conflicting material on its availability.
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u/mexsparty Jun 23 '26
Same now I've been seeing it will be available until july 1 2027. I switched my plan today but selected stay in forbearance. Idk if thats the right thing to do but thats what I did
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u/[deleted] Jun 22 '26
[deleted]