Date Received: 2023-10-12
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I have contacted my loan servicer, XXXX, four times regarding a billing error and they have refused to correct it or offer any assistance. I am new to Mohela. I was transferred from XXXX last month. For years, I was on the XXXX plan with XXXX and never had any problems. My monthly payment was {$58.00}. I received my final statement from XXXX confirming this amount on XX/XX/XXXX with a due date of XX/XX/XXXX. My account with them was on autopay and had been for many years. Prior to my due date, I also verified that I was not due for recertification until XX/XX/XXXX per both XXXX and XXXX. On XX/XX/XXXX I received an email from Mohela saying my loans had been transferred to Mohela. That email stated the following " This change in servicer will not impact the existing terms, conditions, interest rate or available repayment plans of your federal student loans. Your full account details should be available no later than 10 business days after the loan transfer date included in the transfer notification sent from your other loan servicer. '' I never received any statement or mailed correspondence from Mohela notifying me of the amount due prior to my due date. On XX/XX/XXXX I was notified by my bank that my checking account was overdrawn. My autopay information had been transferred from XXXX to Mohela, but instead of deducting the {$58.00} owed, Mohela deducted {$1100.00}. I incurred two overdraft fees due to their error. On XX/XX/XXXX, I called Mohela several times and waited on hold for hours. When I finally reached someone that evening, the representative told me she would look into it. She placed me on hold multiple times and eventually came back saying she could " see no reason '' that my payment amount was changed. She also couldn't figure out how to reinstate my old XXXX plan without a new application and certification. She said she would refund the {$1100.00} to my checking account and that I would need to apply for a new repayment plan. I finally received my first statement from Mohela on XX/XX/XXXX, showing a payment due of {$1100.00}, due on XXXX. I still have not received an XXXX statement explaining the change in loan terms. As of XX/XX/XXXX, it has been an entire week since I was told my payment would be refunded and I still have not received my refund. I called again this morning to look into it and the new representative stated she could not see any refund pending for me and kept placing me on hold. She also could not tell me why my payment amount changed. I was at work and had to end the call. I called back during my lunch break and waited XXXX minutes to speak to someone. That person informed me refunds take 60 days. She would do nothing to put me back on the payment plan I was already on and told me I owe {$1100.00} on XXXX. She told me she could put my account in deferment, but that no months during that time would count toward XXXX. When I asked what my alternative was she placed me on hold and she then disconnected the call.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: TN
Zip: 371XX
Submitted Via: Web
Date Sent: 2023-10-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-12
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Mohela, my loan servicer, has given conflicting information about when my loan forgiveness form will be processed and when my loans will be XXXX. The site says 30 days and one representative told me two weeks. Another told me 6 months. This is very time sensitive as the well being of my family depends on my loans being XXXX timely. I am also pregnant and this is causing me stress and affecting my ability to take my maternity leave. Although it is fully documented that i have XXXX payments, i dont fully trust that Mohela will live up to their promises given their numerous miscommunications and failure to respond to emails which they say they will respond to within 3 days. Therefore, i am hopeful and would appreciate the CFPBs assistance in resolving this issue in a timely manner.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NY
Zip: 11803
Submitted Via: Web
Date Sent: 2023-10-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-12
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: When I began XXXX XXXX in XXXX, I took out a {$20000.00} Direct Unsubsidized loan at XXXX percent interest rate and a {$2000.00} Graduate PLUS loan at a XXXX percent interest rate. I have attached the original loan documentation for this as Exhibit A. On XX/XX/XXXX, I paid the entire {$2000.00} balance remaining on my Grad PLUS loan, as demonstrated by the loan financial activity summary attached as Exhibit B. Before the end of the payment pause, I made further payments to my XXXX XXXX loan for a remaining balance of {$8100.00}. On XX/XX/XXXX, MOHELA sent a payoff letter confirming payment of my Grad PLUS loan, attached as Exhibit XXXX Yet on XX/XX/XXXX, I received correspondence from MOHELA XXXX that I had a {$2000.00} balance on my Grad PLUS loan, which was past due ( Exhibit D ). My account now reflects a {$2000.00} decrease in the balance of my Direct Unsubsidized loan ( down now to {$6100.00} ) and a sudden resurrection of the paid-off Grad PLUS loan with interest tacked on so that my total balance increased to {$8200.00}, attached as Exhibit XXXX XXXX never made any request to reprocess payments or authorized any action that would take my Grad PLUS loan ( with a higher interest rate ) out of payoff. When I called in to ask what happened, following an XXXX minute hold, a MOHELA representative acknowledged that the servicer had committed a serious error and taken it upon itself, without my request or authorization, to reprocess the XXXX XXXX payment of {$2000.00} to the Direct Unsubsidized loan, not the Grad PLUS loan ( with a higher interest rate ). However, in order to get this fixed, MOHELA required that I make a request to have the XXXX XXXX payment reprocessed for the Grad Plus loan -- as if I had not directed the payment to that loan in the first place. This is an attempt to cover up their serious error and prevent regulators from finding out about this, at best, severe lapse in compliance.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: FL
Zip: 328XX
Submitted Via: Web
Date Sent: 2023-10-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-12
Issue: Struggling to repay your loan
Subissue: Problem with your payment plan
Consumer Complaint: I believe Mohela has mishandled my student loans and my eligibility for the SAVE PLAN. They have erroneously denied and/or processed my PSLF application incorrectly. I selected SAVE when I submitted my consolidation request on XX/XX/XXXX. It is showing on your site as cancelled, so I resubmitted another IDR request in XXXX, which was closed out as a duplicate. Please process my request for SAVE.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: FL
Zip: 33612
Submitted Via: Web
Date Sent: 2023-10-12
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: We have applied for an income driven repayment plan several times through the student aid federal website and Mohela 's website and it has given us a monthly payment of less than {$300.00} a month considering our dependents and my husband 's student loan amount. However, Mohela is continuing to make me pay over {$1000.00} a month and will not verify the information that we have provided. Mohela is not considering the large amount of my husband 's student loans and the multiple times we have reapplied with proof of our situation. We have spoken to representatives and they also agree that my payments should be much lower but it has not been updated nor changed at all. We think it is only fair to pay the amount according to the income driven repayment plan calculations that comes out when inputting our information manually on the studentaid.gov website and Mohela 's website.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 90033
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: I shouldve qualifier for public student loan forgiveness in XXXX of this year. However, on the MOHELA website, my payments are missing from XX/XX/XXXX to XX/XX/XXXX. I was not in forbearance. They show on the US student aid site. I made payments all throughout that time.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: OK
Zip: 73012
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: 2023-10-11
Issue: Dealing with your lender or servicer
Subissue: Need information about your loan balance or loan terms
Consumer Complaint: For MOHELA- I was proactive and applied for IDR before the start of repayment in XXXX ( XXXX XXXX? ), and also resubmitted when I was told that they couldn't accept the new IDR because I was not due, when I was, and the old plan expired in XXXX of XXXX. I reapplied for IDR in XXXX and told that it would be processed by the late-middle of XXXX, XXXX, but then received notification ( on XXXX ) that it would be up to 90 days for the IDR to be processed. I am also in the PSLF repayment, and was told twice ( once in XXXX and once in XXXX ) that they were going to count the days in the future, but then when I called to find out why I was put on a LEVEL plan, they said that the PSLF certification form was put in denied status. At that point, the service rep put in back as active, and helped me to resubmit an IDR request at that time. I got a bunch of notifications that I was still in the LEVEL plan and when I called back, they said yes, I was in the LEVEL plan, and that I needed to make a payment in XXXX, to a new date that I didn't request. I had requested back in XXXX for a payment date change to the XXXX of the month, but that was never looked at by the company. When I called XX/XX/XXXX, they reprocessed the date to the XXXX of each month, but didn't notify me at all that it had already been done ( why wasn't it processed automatically in XXXX? ). They also had told me that while they were processing my IDR, they would put me an administrative forbearance, but that didn't happen. Nothing is processing, NONE OF ANYTHING is being counted to my PSLF, which I need XXXX more payments to complete, and today ( XXXX ) they said that they'd put me in a processing forbearance, but that hasn't happened, either. I asked multiple times for a detailed summary of what we discussed during my calls but they refuse to do so. So now I don't even know where anything is, what I am supposed to do, other than watch for the next email to say what ever it is that they are doing with my account. Each time I call, it gets worse, not only the information, but the customer service.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: AZ
Zip: 85042
Submitted Via: Web
Date Sent: 2023-10-11
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-11
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: - had existing loans at XXXX - graduated from school and applied for income based repayment plan, loans at XXXX were placed into REPAYE program - applied for PSLF, was approved by employer and submitted documentation to DOE - was told i needed to transfer loans to mohela to do PSLF - consolidated loans and requested transfer to mohela. in application said that i wanted loans to start repayment immediately and remain on income based repayment plan - loans were sent to mohela and i was placed back on the standard plan ( high payments, accuring interest without subsidy, ineligible for PSLF ) and was put into forbearance ( NOT active repayment ) for unknown reasons, rendering me ineligible for PSLF during this time period. I should be on the SAVE plan where interest is subsidized- have attempted to call mohela every day for last week and have sent multiple secure messages to try to correct this, have not gotten ANY information - their wait times are regularly 3 hours ( not an exaggeration ) and then they say they are transferring you to a supervisor and then you're on hold for another hour - mohela is making multiple mistakes and is impossible to get ahold of
Company Response: Company believes it acted appropriately as authorized by contract or law
State: PA
Zip: 19146
Submitted Via: Web
Date Sent: 2023-10-12
Company Response to Consumer: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-12
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Mohela required me to recertify my income in XX/XX/XXXX during the payment pause for student loans. Shortly after requiring recertification, all federal student loans were placed back into a pause in XX/XX/XXXX. I called in XX/XX/XXXX and they refused to revert the recertification that was not needed and that they never should have requested in the first place. They threatened me with a payment 4x my amount if I didnt do the recertification. When loans were paused again, this recertification should have been cancelled. I request the same rights as all other borrowers. They also still have not corrected my recertification date since it falls within 6 months of payments starting. It should be XX/XX/XXXX, not XX/XX/XXXX.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 958XX
Submitted Via: Web
Date Sent: 2023-10-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-12
Issue: Incorrect information on your report
Subissue: Information belongs to someone else
Consumer Complaint: I have tried several times to have fraudulent student loan removed from my name. It is removed from my credit report, but yet MOHELA still will not take action on this student loan. I have sent in all documents, along with police report and signed ID theft affidavit that I signed in front of a notary.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MI
Zip: 48911
Submitted Via: Web
Date Sent: 2023-10-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A