Date Received: 2023-10-15
Issue: Incorrect information on your report
Subissue: Old information reappears or never goes away
Consumer Complaint: Mohela reported account with balance which is incorrect-it should read as a XXXX balance.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: VA
Zip: 22406
Submitted Via: Web
Date Sent: 2023-10-15
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-15
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: The US Federal Student loan program has restarted loan collection. The program has been postponed on two fronts. 1 ) COVID Pandemic and 2 ) President XXXX XXXX 's effort to seek loan forgiveness through the legal channels. The COVID Pandemic has end and the Presidents efforts were not successful. The US Department of Education outsourced the collect of the loans to a dot com company Mohela. This is where the issue begins. XXXX of 2023 is the month for the billing restart, however Mohela has not mailed any billing notices to the loanees. Normal business practice for almost all businesses is to send a bill showing the account information, payment amount and date due. Mohela has intentionally avoided normal billing process. They have have not mailed any billing information. This permits Mohela to force loanees into default status. If you are unaware of the bill, due date, and penalty, then there is a very high percentage chance that you will be leveraged into default for non payment. Leveraging loanees into default is a strategy used by the dot com Mohela. It is unethical, and not legal. In a word, it is wrong. Mohela has been aware, for most of 2023, that the loan collection restart for the month of XXXX. Mohela stands to make perhaps millions by forcing default. Students on a payment plan which goes into default, loses reduced payment status immediately, and transitions to the highest possible payment scenario. A loan repayment with monthly installments at {$250.00} could instantly become a {$1000.00} or more while in default. The remedy to default is very laborious and should be avoided. Mohela is manipulating the default by bypassing the standard procedure of sending out monthly bills at the restart of loan collection. No notice was sent by Mohela, who tries diligently to force you to go online to open an account at their dot com web site. Many loanees do not have access to the web or choose not to use their website. This should not prevent Mohela from sending bills in advance of due dates. Mohela 's bypassing of the billing process is highly suspect and most likely illegal. # In addition to the complaint category selected there are other categories which also apply including : *Trouble with how payments are being handled *Received bad information about your loan ( no information, incorrect, incomplete, or inaccurate information ) *Need information about your loan balance or loan terms
Company Response: Company believes it acted appropriately as authorized by contract or law
State: GA
Zip: 30052
Submitted Via: Web
Date Sent: 2023-10-15
Company Response to Consumer: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-15
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: On XX/XX/2023 I submitted an application and request to Mohela for move from the PAYE income driven repayment plan to the SAVE income driven repayment plan after using the student fed loan simulator and it indicating my monthly payments would lower. Once Mohela received my request ( before processing and approving it ), their projected payment was {$40.00} more a month and nearly {$100.00} more a month than the initial estimate. I called Mohela on XX/XX/XXXX to inquire as to why my payment would be hire and asked for them to cancel my application to move to the SAVE plan and remain on the PAYE plan with my original payment. The customer service representative told me they could do that and Id be placed back on my PAYE plan. On XX/XX/XXXX I logged on to Mohela and saw I had been moved out of the PAYE plan and to SAVE even though I had requested not to be and told by Mohela representative I would remain in PAYE. I called Mohela again and spoke to someone new. They told me the request to cancel my SAVE application had been submitted but not in time and that they could not move me back to PAYE without a new application. I asked them to submit the new application and was told it would take 7-14 days. I called again on after I received multiple back dated messages through the Mohela website that I was placed on administrative forbearance. The first person I spoke to told me I was on administrative forbearance because of the delayed processing time with IDR applications and that it could take up to 90 days to process. When I asked if months on administrative forbearance, that did not require a monthly payment, counted towards Public Service Loan Forgiveness, I was told that no, they would not count towards my Public Service Loan Forgiveness and that I needed to request to be removed from forbearance and make monthly payments to qualify. I called again later that day and asked a second representative if months of non-payment while on administrative forbearance counted towards public service loan forgiveness and this representative told me that yes, it would and I should remain on forbearance. I then emailed Mohela requesting for written confirmation as to whether administrative forbearance counted towards PSLF. I received a generic response that did not answer my question or provide the requested information. I responded to that email and never heard back.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: OR
Zip: 97220
Submitted Via: Web
Date Sent: 2023-10-15
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-14
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I submitted my PSLF form on XX/XX/2023. When I submitted it there was language on the website that all forms would be processed within 30 days. 30 days have lapsed, so I called Mohela and they stated that it is taking 45 days now. If you commit to 30 days to process a simple form then they need to honor that and not change it mid-way after submission. I have also spent two plus hours waiting for someone to answer my calls. They are making a lot of money servicing loans and should adequately staff and resource to fulfill their contract obligations. They should process simple forms within 30 days. And not change their policies after they have committed to this when you upload a form.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: VA
Zip: 201XX
Submitted Via: Web
Date Sent: 2023-10-14
Company Response to Consumer: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-14
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: On XX/XX/23 my loan servicer was changed from XXXX to MOHELA. In the transfer notice email from MOHELA it stated all of my loan information would be transferred. I had submitted PSLF paperwork on XX/XX/23 and paperwork for enrollment in income driven repayment on XX/XX/23, both via the federal student aid website. On XX/XX/23 I received a bill in the mail from MOHELA stating I owed over {$2000.00} XX/XX/23. This is half of my monthly salary. I logged into the MOHELA website and while my PSLF paperwork was transferred there was no record of my repayment plan paperwork. I tried calling multiple times but was unable to get ahold of anyone on the phone ( I work ~80 hours/week as a XXXX XXXX ). I sent multiple messages through their website inquiring about why the paperwork was not sent to MOHELA and why only part of my paperwork was sent. I sent messages on XX/XX/23, XX/XX/23 and today XX/XX/23. Their website states they will reply in 3 business days. I have not received any reply even from my message on XX/XX/23. I tried to re-submit paperwork for the repayment plan on XX/XX/23 through the federal student aid website which also shows my prior application. The second application is the only one appearing on my MOHELA account and I continue to get bills stating I owe over {$2000.00} even though I submitted appropriate paperwork over 90 days ago ( which is how long they state is required for processing of repayment plans ). I can not make these payments and can not get any resolution through MOHELA.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: HI
Zip: 96816
Submitted Via: Web
Date Sent: 2023-10-14
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-14
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: Mohela student loans, SAVE program. I am approved for the SAVE program and set up my autopay account with Mohela successfully. My date to start repayment on the student loans is XX/XX/XXXX and it appeared everything was all set to begin payments. On XXXX XXXX XXXX XXXX XXXX Mohela sent me an email/message that I did not see until the morning of Saturday XX/XX/XXXX. It stated that my account had been placed on administrative forbearance. I did not request or consent to this forbearance. I have no idea why this happened. Mohela offices are closed and will not be open until regular business hours while I am at work Monday XX/XX/XXXX, the same day my payment is due. This is very confusing, distressing and inconvenient. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX I have tried to do everything right to prepare for loan payments resuming but was given almost no notice of this forbearance. Only one business day between notification of forbearance and when payment was due. This will likely result in additional interest accruing, for which I have not consented and seemingly have no way to rectify or get clarification from Mohela.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MI
Zip: 48382
Submitted Via: Web
Date Sent: 2023-10-14
Company Response to Consumer: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-13
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I applied for Public Service Loan Forgiveness ( PSLF ) in XX/XX/XXXX. At that time, I applied for consolidation with a direct loan lender, Mohela. My prior loan servicer was XXXX. I have worked for a qualifying PSLF employer since XXXX and have made over XXXX qualifying on-time, income based payments from XXXX to present. On the Mohela website, there is a gap of unaccounted monthly payments from XX/XX/XXXX to XX/XX/XXXX and only XXXX of the XXXX payments I have made toward my student loans have been verified. I provided proof of payments through my prior servicer XXXX. Mohela continues to state that they are waiting for updated payment counts from federal student aid ( FSA ). I submitted a PSLF reconsideration request with FSA on XX/XX/XXXX and never received a response. XXXX representatives state that they have updated the loan servicer and the complaint is closed. I'm incredibly frustrated because I have made more than XXXX qualifying payments and now that we are entering repayment, I do not know what to do regarding my student loans, which should have been forgiven. It seems like the XXXX entities, Mohela and XXXX are not communicating with each other. I have called Mohela at least XXXX times since XX/XX/XXXX to try to get this resolved and have been told to be patient. There is a clear error somewhere and the XXXX entities need to clear it up.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: TX
Zip: 787XX
Submitted Via: Web
Date Sent: 2023-10-13
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-13
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Formal Complaint Against MOHELA for Failure to Implement Public Service Loan Forgiveness ( PSLF ) To Whom It May Concern, I am writing to formally file a complaint against MOHELA for their failure to implement the Public Service Loan Forgiveness ( PSLF ) as mandated by federal law after my completion of 120 qualifying payments. Despite fulfilling all the requisite criteria set forth by the Department of Education and the PSLF program, I have been met with administrative hurdles, lack of clarity, and ultimately a failure to forgive my loans as promised. Chronological Overview of Events Initiated loan repayment plan on XX/XX/XXXX. Completed 120 qualifying payments as of XX/XX/XXXX. Submitted PSLF application on XX/XX/XXXX. ( Several prior attempts as well. ) Application on hold pending processing as of XX/XX/XXXX. Attempts to Resolve the Issue I have reached out to MOHELA 's customer service multiple times to resolve this issue. Each time, I have been given vague or contradictory information, complicating the process further. Despite supplying all necessary documentation to prove my eligibility, my application for forgiveness continues to be denied. Violation of Federal Law I believe that MOHELA 's actions are not just an administrative error but a violation of federal law concerning the Public Service Loan Forgiveness program. They have failed to honor the commitment made to borrowers who dedicate their careers to public service. I kindly request that the CFPB investigate MOHELA 's business practices related to the PSLF program. I also request that actions be taken to ensure MOHELA complies with federal regulations and proceeds with loan forgiveness as stipulated in the PSLF program. I am prepared to provide further documentation or testimony if required. I look forward to a prompt resolution to this serious issue.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MN
Zip: 559XX
Submitted Via: Web
Date Sent: 2023-10-13
Company Response to Consumer: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-13
Issue: Incorrect information on your report
Subissue: Account information incorrect
Consumer Complaint: My XXXX credit report states that MOHELA is reporting Completed investigation of FCRA dispute - consumer disagrees in the " comment '' section of my student loan account. I am unfamiliar with the dispute which MOHELA is referencing. I do not dispute the account information listed on my credit report. It should be noted that this is a recurring issue. I have gone to great lengths attempting to resolve this problem directly with MOHELA and XXXX. MOHELA stated in an email to me that it submitted a request to XXXX to remove the comment on XXXX XXXX XXXX and that I should expect an update within five business days. That email is attached. I have attempted to resolve this issue with XXXX directly to no avail. I previously filed a complaint against MOHELA and XXXX with the Consumer Financial Protection Bureau on XXXX XXXX XXXX concerning this issue. The complaint number was XXXX. I also previously filed a complaint against MOHELA with the XXXX XXXX XXXX MOHELA responded to my complaint with the XXXX XXXX XXXX on XX/XX/XXXX. That response indicated that a request was submitted to XXXX on XX/XX/XXXX, to remove the comment. This response is attached. I withdrew my complaint against MOHELA and XXXX with the Consumer Financial Protection Bureau because the comment was removed from my XXXX credit report ( for a time ). However, I accessed my XXXX credit report today, XX/XX/XXXX, and discovered that the comment has reappeared. I obtained my XXXX credit report directly from XXXX itself, rather than a third-party app such as XXXX XXXX XXXX I would like this comment removed from my XXXX credit report.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: WV
Zip: 25801
Submitted Via: Web
Date Sent: 2023-10-13
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-13
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: Mohela is the servicer of my federal student loans. I was set to begin loan repayment on XX/XX/XXXX. The payment did not post, so I checked the Mohela website. I did not receive any email notifications about my payment. On the website, I had a letter stating that my account was put into XXXX XXXX, ending XX/XX/23. I did not request this forbearance and was not contacted about it. Mohela 's website says that wait times are very long, and I see other reviews online that calls are taking about 2 hours to try to deal with this, and that Mohela is offering conflicting information. I work all day and do not have time to chase my federal student loan servicer for hours. They are failing to do the bare minimum.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CT
Zip: 061XX
Submitted Via: Web
Date Sent: 2023-10-13
Company Response to Consumer: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A