Date Received: 2023-10-25
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: Note : I previously made a complaint with the reference number : XXXX. While I have finally been placed into the XXXXXXXX XXXX, the information provided by MOHELA to the CFPB was inaccurate when it was sent as I had provided the information MOHELA claimed to have previously denied me on. This complaint is regarding three issues : 1. I have repeatedly requested the documentation related to my account from my previous servicer, XXXX. MOHELA has repeatedly given me information that I believe is inaccurate but without that documentation it is impossible to verify either way. I made this request on XX/XX/2023 and have received no response. 2. I have requested clarification on the interest that has been accruing to my account. I believe MOHELA has decided to apply interest during the mandatory period during XXXX where interest was waived. They have not responded to repeated inquires on this topic. I initially made this request on XX/XX/2023 and have received no response. 3. MOHELA does not allow you to payoff loans on its website. Its telephone system is impossible to navigate as many menus do not provide you with options necessary to get the help you need. I do not have time to sit through 5 minute menus every time MOHELA 's inadequate system fails to connect me with anyone and instead gives me a robot to talk to. After attempting 5 times to connect with a MOHELA representative with no success today XX/XX/2023 I used MOHELA 's message system to request my documents. 4. Most of my loans are not reflecting the autopay discount, this needs to be adjusted and back dated to ensure that I am not being overcharged.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: GA
Zip: 306XX
Submitted Via: Web
Date Sent: 2023-10-25
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-25
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I received a letter from MOHELA via the internal messaging system on XX/XX/2023 XXXXXXXX XXXX CST, Subject : Administrative Forbearance. I received notification of this letter via email on XXXX XXXX, 2023 at XXXXXXXX XXXX CST. The attached letter stated : MOHELA has placed an Administrative Forbearance on your account. Carefully read the back of this page and the enclosed Loan Details regarding the forbearance period for your approved loans. If your monthly payment is {$0.00} or more on an income-driven repayment ( IDR ) plan prior to being approved for this forbearance, you may not be using the full benefits you are entitled to under the IDR plan. If you are applying for an IDR plan or another option, please provide the necessary documentation to complete your request. You may decline or request to end the forbearance by calling us at XXXX. If the forbearance was not approved for some of your loans and you would like more details, please contact us. If you are unable to make payments, login to mohela.com to determine what other repayment options may be available to you. I did not request the administrative forbearance and as interest had resumed due to the end of the governmental loan pause as of XXXX, 2023, I wanted to resume payments. The letter above stated that I could decline the administrative forbearance. As such, I contacted MOHELA via telephone on XXXX XXXX, 2023 via the number provided above. I waited to be connected with a representative for several hours and then spent additional time with a representative requesting to decline the forbearance and begin payments. There were two calls total time was 2 hours and 41 minutes. During this call, I was informed that the administrative forbearance had been decline, that my account would be updated to payment status and that my first payment would be due XXXX XXXX, 2023. I was also told that this payment would be considered a qualifying payment for programs such as Public Service Student Loan Forgiveness ( PSLF ), which I am in the process of applying. I also submitted an internal message on XXXX XXXX, 2023 requesting the following : Subject : Deferment and Forbearance Attachments ( click to open ) : Sent Date : XX/XX/2023 XXXXXXXX XXXX Body : Your Question : Hello, I received a letter stating that an administrative forbearance was placed on my account starting XXXX XXXX, 2023 and ending XXXX XXXX, 2023. The status of my loan is " repayment '', however, there is no payment due date and the minimum reflects {$0.00}. I have several questions about the administrative forbearance. 1. Will I continue to accrue interest while in administrative forbearance? 2. Will the month of administrative forbearance count as a qualifying payment for programs such as PSLF? 3. Can I still make a payment during administrative forbearance? If so, will that payment count as a qualifying payment toward programs such as PSLF? 4. Can I apply for PSLF during administrative forbearance? 5. If I desire, can I decline the administrative forbearance and begin to make payments toward my student loans? Thank you for your timely response to these questions, XXXX This message was never responded to. I sent a follow-up internal message on XXXX, XXXX, 2023 requesting the following : Subject : Deferment and Forbearance Attachments ( click to open ) : Sent Date : XX/XX/2023 XXXXXXXX XXXX Body : Your Question : Good morning, I have not received a response to my inquires below. I did, however, reach a representative on the phone XX/XX/2023. The representative work with me to decline the administrative forbearance and set payments to begin this month. This is not reflected on my account, though. Please advise, had the administrative forbearance been decline and will my payment be due in XXXX, XXXX? This message was never responded to. I continued to monitor my account for the next several weeks waiting for the request above to be processed and my payment to be reflected as due. I contacted MOHELA again on XXXX XXXX, 2023 as my account was still reflecting administrative forbearance and my payments were not due. Again, I waited on the phone for several hours to speak with a representative and several more discussing the issue. The call in total was 4 hours and 29 minutes. During this second call, I was told that my request to decline the administrative forbearance had not been processed. There was a ticket for my account but the request had not been processed or closed on MOHELAs part. Again, I requested to decline the administrative forbearance and begin payments. I was told that the request would be processed and closed but that it would take 5-7 business days to be reflected on my account. However, that if I wanted to make the payment for XXXX, it would be due on XXXX XXXX, 2023 prior to the processing of my request. Also, I was told that MOHELA could not guarantee that this payment would count as a qualifying payment for programs such as PSLF because payments made to an account in forbearance do not count as qualifying payments. I was told to make the payment anyway, despite the fact that my account still reflected administrative forbearance and that my payment was not considered due and that they could not guarantee it would be considered a qualifying payment as Federal Student Aid ( FSA ) provides the final determination regarding qualifying payments. I asked MOHELA to provide documentation of my original request to decline administrative forbearance on XXXX XXXX, 2023 and was denied any form of documentation that I made this request or that MOHELA was negligent on their part to process the request in a timely manner for the XXXX payment. I was denied an email regarding the statement of my account and request. I was denied an internal message regarding the statement of my account and I was denied copies of the internal communications and tickets regarding this request and MOHELAs failure to process it. On XXXX, XXXX, 2023, I made a payment in good faith via MOHELA payment system despite the fact that my account still did not reflect payment status and was in administrative forbearance. Because my account was in administrative forbearance, I was unable to submit the monthly payment based on certain loan criteria ( e.g., highest interest rate, proportion of debt to interest, highest loan ). Rather, I was prompted to split the total payment between XXXX loans, making XXXX individual installments totaling at least the minimum that should have been due. Additionally, it is unclear if this payment was applied to my account for the month of XXXX, per MOHELA policy, Payments received during an in-school ( more than 120 days after a disbursement ), grace, deferment, and/or forbearance period are applied to future installments only if your new monthly payment has been disclosed, as my account was still in forbearance status at the time of the payment.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MO
Zip: 640XX
Submitted Via: Web
Date Sent: 2023-10-25
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-25
Issue: Struggling to repay your loan
Subissue: Can't temporarily delay making payments
Consumer Complaint: My husband and I have a FFELP Joint Spousal Student Loan with MOHELA. A law was passed that was specific for us to separate our joint spousal student loan, XXXX. The Department of Education has stated that they do not have a plan or process yet to separate out our loans and are encouraging loan servicers to give us an administrative forbearance for one year until they develop a process to separate us out. I have called MOHELA on the following dates : XXXX XXXX XXXX XXXX XXXX, and finally today XXXX The first 5 times that I called, they told me that I was going to placed on an administrative forbearance. Then I received two pieces of mail stating it was a " processing forbearance '' and that those would end in a month and a half. Today when I called I was told that they were not going to put us in an administrative forbearance without having an ombudsman from FSA telling them to put us in one. I had reached out 2 times prior to today to the ombudsman group. Once on XX/XX/ and again on XX/XX/, telling them that I was having trouble getting an administrative forbearance. I had not heard back from them. I was instructed today from the FSA to open a new complaint with instructions to send MOHELA a letter instructing them to give us an administrative forbearance. I was also told it would take 2 weeks. I did that today. We now owe almost {$1200.00} on a payment as we can not get into any type of program to help us ease that burden. We have been paying for 20 years and both qualify for the temporary PSLF waiver which we got our paperwork in per instructions of the FSA. We are just asking for the administrative forbearance without capitalizing interest per the ED 's guidance for joint spousal student loans like other servicers are allowing and following. Thank you. XXXX XXXX
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MO
Zip: 652XX
Submitted Via: Web
Date Sent: 2023-10-25
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-25
Issue: Dealing with your lender or servicer
Subissue: Problem with customer service
Consumer Complaint: After being on hold for XXXX hours and XXXX minutes today, from approximately XXXX to XXXX XXXX I was finally transferred to a supervisor. Unfortunately, I did not get that supervisor 's name ; however, she was incredibly rude and condescending. After explaining the situation to her, she would not let me clarify further, kept interrupting me, and then interrupted me by putting me on hold. The call was then disconnected without her ever having done anything to help.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: VA
Zip: XXXXX
Submitted Via: Web
Date Sent: 2023-10-25
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-25
Issue: Dealing with your lender or servicer
Subissue: Don't agree with the fees charged
Consumer Complaint: I submitted forms to count new payments toward my pslf under the new rules in XXXX. I was also receiving a stipend of about XXXX a month from XXXX to pay down my loans for working in rural primary health care over the course of 2 years ( which was shortened due to below ) I was notified in XX/XX/XXXX Via mail from mohela that I have made enough payments for PSLF and loans were forgiven. I had an overage credit of XXXX. I contacted XXXX and let them know to stop payments and they told me that the refund had to be sent to them upon receipt. I emailed Mohela x 2 and and phone call x 1 in order to let them know that XXXX wanted the refund back and received an email stating that yes there was going to be a refund that would be processed in 60 business days. On XX/XX/XXXX, to my dismay they deposited the overage into parent loans I had for my XXXX sons. I called and emailed several times and several hour waits to keep being told either there was nothing that could be done or that they do not see a refund. Mid XXXX I spoke with XXXX who offered her help form could be expedited to get this refund form case # XXXX and would take 4-5 days and I would be notified .I tried calling several times and emails after that and hours waiting and finally reached someone on XX/XX/XXXX who told me initially she has no note of me ever calling the service since XXXX, but then miraculously found it written in the " notes '' section of what I was referring to and said it was processed the day prior ( XX/XX/XXXX ) / refund in the next 60 days. Since I have been calling and emailing them and not getting responses, only automated emails stating that I have called the call center so they assume my problem has been addressed. on the other end XXXX has since turned my balance over to Program Support Center, Financial Management Portfolio U.S. Department of Health and Human Services XXXX XXXX XXXX acct XXXX who is charging interest/action against me for the stated sum.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NY
Zip: 128XX
Submitted Via: Web
Date Sent: 2023-10-25
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-25
Issue: Struggling to repay your loan
Subissue: Problem with forgiveness, cancellation, or discharge
Consumer Complaint: I switched from another student loan plan to MOHELA to qualify for PSLF forgiveness, as I am a XXXX by profession and worked for qualifying employers. In doing so, I took on even more debt, because it extended my payments/ interest out. However, it was the only way to have my loans qualify for PSLF, so I thought that the benefit would be worth it. Forms for each employer were due by the end of XXXX, XXXX. I submitted them XX/XX/XXXX. I had three qualifying employers under which I made payments, but only one was accepted for PSLF. The reason given on the MOHELA website was that they had received " duplicate forms. '' I called to question this, and was told that they received my forms twice, and therefore, those employers would not longer be accepted / eligible. I told the operator that this did not make sense. I had no idea how the form got there twice ( did the fax re-send? ). In addition, what difference would it make if they receive two copies of the exact same form? If the employer counted for eligibility, they counted, and it should make no difference if they received one copy of the form or ten... the form was submitted in time. I was told that my issue would be escalated, but I never heard from anyone to resolve this. Within the past month, I have tried to contact MOHELA again to discuss the issue further. The website says that if there are questions, I should contact them. However, when I call, I receive a message saying that due to high call volume, they are not accepting calls at this time.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: PA
Zip: 16602
Submitted Via: Web
Date Sent: 2023-10-25
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-25
Issue: Incorrect information on your report
Subissue: Account information incorrect
Consumer Complaint: See attached CFPB MOHELA full Complaint in PDF format for details. Summary : My account balances on the MOHELA and US Dept of Educations websites reflect a XXXX balance after I was granted PSLF forgiveness, but MOHELA has failed to report such to the credit bureaus as stated in its own forgiveness notice. I have filed three rounds of disputes with the credit bureaus to have this information updated to no avail. I am reporting this to the CFPB for MOHELAs failure to appropriately report correct information.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: OK
Zip: 731XX
Submitted Via: Web
Date Sent: 2023-10-25
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-25
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I was placed into involuntary administrative forbearance for no apparent reason on XX/XX/23 I called that same day and they said they would process a request to take me out of forbearance in 3-5 business days. I waited this time and no action was taken. I called back and they said they couldnt give me a time frame for process to take effect. Called many more times all with XXXX min wait times, with no action being taken. I want to make my monthly payment on the SAVE plan to Take advantage of the interest subsidy but now I am just accruing XXXX XXXX XXXX of interest instead. MOHELA is fraudulent, inept, and should not be allowed to handle our loans. They are costing borrowers hard earned money because of their incompetence
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NC
Zip: 27127
Submitted Via: Web
Date Sent: 2023-10-25
Company Response to Consumer: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-25
Issue: Struggling to repay your loan
Subissue: Problem with your payment plan
Consumer Complaint: I am qualified and approved for the SAVE plan, which sets my monthly payment at ~ {$180.00} a month. I have registered this with FederalStudentAid.gov. Recently, my loan provider was switched to Mohela. Even though I am approved for the SAVE plan, Mohela reverted to outdated information, which almost doubles my monthly payment. I went through and I reapplied to the SAVE plan through Mohela 's website ( even though they should already know that I'm on that repayment plan ), and the website verified that I should be paying the ~ {$180.00}. Despite that, Mohela charged me the higher amount based on the outdated repayment plan on XX/XX/23. In order to talk to any customer support from Mohela, there is a 120+ minute wait on the phone -- I live on the west coast , and their hours are only east coast working hours, meaning it is next to impossible to reach them by phone. This is ridiculous and I can not believe that this company is being allowed to operate and charge student borrowers more than they should be able to, especially considering how hard this debt crisis is hitting the average person.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 92104
Submitted Via: Web
Date Sent: 2023-10-25
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-25
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: My bank sent an electronic payment to Mohela on XX/XX/XXXX for the amount of {$140.00} to be credited to my student loan payment which was due on the XXXX of XXXX. I logged onto my account on XX/XX/XXXX and noticed it was showing that I had not paid it. I messaged them and sat on hold for almost 4 hours waiting to speak to someone. When the person answered they said I sent it to the wrong address. Then they also said they had no record of a payment so I would need to call my bank to cancel the first one and send a new payment. My bank said they did receive it and attempted to call Mohela but could not get through. When I got home I had 2 letters from Mohela, one dated XX/XX/XXXX, stating they had received my payment but at the wrong address ( again it was electronic not paper ) and it would be credited and the other was a bill stating I had not paid anything. I went ahead and submitted another payment on the XXXX just to ensure it would be within the 15 day window. Neither payment has been credited and it is now the XXXX. I have also emailed 4 more times to no response at all. Now, it is almost time for another payment and I am not sure what to do.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: GA
Zip: 30019
Submitted Via: Web
Date Sent: 2023-10-25
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A