Date Received: 2023-10-12
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I was told by Dept of Ed on XX/XX/XXXX to apply for the new XXXX XXXX. I applied on XX/XX/XXXX, and then logged in to Mohela to see I already had a payment plan in the system ( which was not the case before ). I called Mohela on XX/XX/XXXX to cancel the new IDR payment plan request. I was told by the rep that I wouldn't need to pick a new plan until XXXX. I called back on XX/XX/XXXX to confirm the new payment plan would be cancelled, and I was told yes. XXXX XXXX I got an email from Mohela that some of my loans were in administrative forbearance - I did not ask for this. I called several times to find out why, as I would like to repay ALL of my loans not just some, and was not able to reach anyone. When I logged into my Mohela account on XXXX I see that my payment amount is now double the cost of what it was last month. A surprise increase by XXXX XXXX dollars. I called Mohela several times this week and did not get through until yesterday, XX/XX/XXXX. I was on the phone with the rep who said she was going to have a supervisor review my account. I was told to continue holding. After XXXX minutes, the rep hung up on me. I know for a fact she hung up because the phone was on speaker and resting on my desk, I did not touch it at all. The rep said during our call that she would call me back if we got disconnected, but she never did, so she 100 % purposefully disconnected. I did some research and I am far from the only one that Mohela has hung up on.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: FL
Zip: XXXXX
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: When the COVID payment pause ended in XXXX, I noticed that my student loan payment had jumped, and that I was no longer on the XXXX plan ( REPAYE ) that I was on when the pause started. As confirmed by the government, borrowers did not have to recertify during the pandemic and should be simply restarted when the pause ended. I called Mohela and they lied to me at first and told me that I was supposed to recertify. After asking to speak to a manager, they told me that they would submit an application to get me back on the XXXX plan I was on prior to the pause, which is what is supposed to happen. Now, on XX/XX/XXXX, I received an email from Mohela telling me that my request for an XXXX plan could not be approved because I did not recertify. The rule is that I am not required to recertify and that I should be placed back on the XXXX plan I was on prior to the pause, and then given a new date for certification. I was given this XXXX ( which is like a case number ) : Qkey : XXXX
Company Response: Company believes it acted appropriately as authorized by contract or law
State: PA
Zip: 19147
Submitted Via: Web
Date Sent: 2023-10-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-10-11
Issue: Dealing with your lender or servicer
Subissue: Problem with customer service
Consumer Complaint: I called MOHELA yesterday ( XX/XX/23 ) and I was put on hold for over two hours before I could speak to anyone. The reason I called is that MOHELA put my account into forbearance that I had never requested, nor did they notify me that they had done so. If I hadn't happened to log into my account, I never would have known. Once I finally got someone on the phone, I asked them why they put my account into forbearance. The person I spoke to didn't know, put me on hold to find out, and never figured out an answer. I messaged MOHELA through their website to ask about why the forbearance had been applied and to confirm that the months on forbearance would count towards Public Service Loan Forgiveness, but they have not yet responded.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MN
Zip: 55119
Submitted Via: Web
Date Sent: 2023-10-11
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: Trouble with how payments are being handled
Consumer Complaint: Mohela is adding interest to my balance that should be waived every month per the SAVE repayment plan AND they are reporting a incorrect balance to my credit report. I am on the SAVE repayment plan. I paid my XXXX payment on time. Prior to the end of the COVID forbearance my total balance was {$250000.00} after I paid my payment due for XX/XX/XXXX, interest was added to my balance and my balance increased to {$250000.00}. Per the SAVE plan interest should NOT be added to my balance. I requested that Mohela remove the interest that was added to my balance in XXXX and reply to me explaining why this mistake happened and when they will correct it and they did not correct it. Per the Studentaid.gov website the SAVE Plan eliminates 100 % of remaining monthly interest for both subsidized and unsubsidized loans after you make a scheduled payment. This means that if you make your monthly payment, your loan balance wont grow due to unpaid interest that accrued since your last payment. Mohela is not complying with the repayment plan requirements. I have attached proof of my balance prior to the end of the Covid payment pause, proof that I paid the XX/XX/XXXX payment in full on XX/XX/XXXX on the SAVE repayment plan and proof that Mohela reports a increased balance of {$250000.00} after the payment was made.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: IL
Zip: 60466
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: Received bad information about your loan
Consumer Complaint: Description of Problem I have outstanding student loans totaling {$200000.00}. Prior to the student loan pause, I was on the XXXX plan and my monthly payment was {$360.00}. My servicer changed from XXXX XXXX to Mohela in XXXX. Mohela recently notified me that I had been automatically converted to the SAVE and my monthly payment increased from {$360.00} to {$670.00}, even though I had previously been told that my payment would remain the same under the SAVE plan. My husband 's monthly payment similarly increased by several hundred dollars. This was very surprising and concerning to both of us because we have not re-certified our income since XXXX ( when we used our XXXX AGI as married joint filers ). We called Mohela twice and both times the representatives advised they did not know XXXX ) what income amount was used to calculate our new payments ( e.g., our XXXX AGI? Something else? ) and XXXX ) how the payment calculation was made. This is basic information that should be easily available to all borrowers. Instead, the agents pressured us to re-certify, which I understand we are not obligated to do until XXXX
Company Response: Company believes it acted appropriately as authorized by contract or law
State: DC
Zip: 20010
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: Received bad information about your loan
Consumer Complaint: Aidvantage said I had to recertify my income before it was necessary. They said I needed to recertify by XX/XX/XXXX but according to information from the Federal Student Aid Website the earliest that I would need to recertify is XX/XX/XXXX. This in turn will cost me about {$2500.00} in payment that I did not need to pay. Additionally, information on their website should be factually correct instead of deceptive in nature. Please see the attached documents for the conflicting information.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: WI
Zip: 532XX
Submitted Via: Web
Date Sent: 2023-11-06
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: Problem : My account is showing I owe {$1600.00} due today ( XX/XX/XXXX ), however, MOHELA sent me a letter on XX/XX/XXXX stating my account is in administrative forbearance while they process my SAVE plan application. They have not applied the forbearance to my account, as required by federal policy. Background : My loans were on the REPAYE plan prior to the start of the COVID-19 0 % interest period. ( See documentation provided ). When interest resumed, 3 of my loans were placed on the Level plan while the other 6 loans were transferred over to the SAVE plan. On XX/XX/XXXX, I recertified my loans via Studentaid.gov, with information downloaded directly from my most recent tax filing, to ensure all 9 loans were captured under the SAVE plan. I called MOHELA on XX/XX/XXXX to inquire about the status of my SAVE application. I was told they had no record of me applying for SAVE. The representative suggested I reapply, verbally, over the phone with her. Therefore, on XX/XX/XXXX I filed a second recertification for the SAVE plan per MOHELA 's recommendation. ( See documentation provided. ) On XX/XX/XXXX, I called MOHELA to follow up on the status of my application ( s ). The representative stated she could see both applications in the system and they were both processing. She indicated current wait times for processing of applications were about 15 days and I should expect an approval around XX/XX/XXXX. On XX/XX/XXXX, I received a letter ( dated XX/XX/XXXX ), stating my account had been placed in administrative forbearance. ( See documentation provided ). However, my account dashboard still indicated a payment was due on XX/XX/XXXX. On XX/XX/XXXX, I called MOHELA to ask for clarification. After over 2 hour on the phone, and speaking with 2 representatives, neither of them were able to determine why the forbearance had not been applied to my account. The second representative I spoke with applied for another administrative forbearance on my account. As of XXXX/XXXX/XXXX, that forbearance has not updated my account either. On XX/XX/XXXX, I received a letter ( dated XX/XX/XXXX ) stating my repayment terms had changed for only 6 of my 9 loans. ( See documentation provided ). The letter listed a new payment due date of XX/XX/XXXX for 6 of my loans, and converted those loans ( previously on SAVE ) to the Level plan. Additionally, my account dashboard is still stating I have a payment due today ( XX/XX/XXXX ). ( See documentation provided ). I also received an email on XX/XX/XXXX, reminding me I had a payment due. ( See documentation provided ). MOHELA is providing mixed messages to borrowers regarding payment due dates and the status of their accounts. They are also incorrectly assigning accounts under the REPAY plan to the Level plan, instead of honoring the conversion of REPAYE to SAVE. Calls to discuss the issue with the company directly are not helpful as representatives lack the knowledge and access to be able to troubleshoot problems. I am now forced to make a payment of {$1600.00}, which is over XXXX the amount I should be paying on the SAVE plan ( {$520.00} ) to ensure my payment is not delinquent. My MOHELA dashboard is also reporting my monthly payment on the Level plan is {$2000.00} per month ( see documentation provided ), so next month my payment could increase to nearly 4x what it should be while MOHELA continues to sort through these preventable delays. Attachments : 1 ) Documentation of loans on REPAYE prior to loan payments restarting. 2 ) Screenshot of SAVE recertification status. 3 ) Administrative forbearance letter. 4 ) Change in repayment terms letter. 5 ) Screenshot of borrower dashboard indicating payment is due XX/XX/XXXX. XXXX ) Email reminder for payment due XX/XX/XXXX. 7 ) Screenshot of monthly payment with loans ( incorrectly ) assigned to the Level plan. 8 ) Screenshot of account approved for REPAYE as of XX/XX/XXXX.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: KS
Zip: 662XX
Submitted Via: Web
Date Sent: 2023-10-11
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: Trouble with how payments are being handled
Consumer Complaint: I was assigned to MOHELA loan services, and honestly I wish I wasn't. I applied for the SAVE plan in XX/XX/2023, which would bring my monthly student loan payment from {$550.00}, down to {$77.00}. I got a letter in the mail from MOHELA on XX/XX/XXXX ( a day after my first payment was due ) that my application was denied because I did not upload documentation of me or my spouse 's income. I do not have a spouse and indicated that on my application, and I did upload my employment letter showing my income, so I called MOHELA to clear up this misunderstanding on Tuesday, XX/XX/XXXX ( I couldn't call earlier due to the weekend and a holiday on Monday ). The first agent I spoke to was receptive and told me what the process was going to be like to solve the issue. She said the payment that I wasn't able to make ( due to my application being denied and not being able to afford it ) was going to be put into forbearance and then my application would be resubmitted as she did see that I uploaded my income documents, and clarified that I stated that I do not have a spouse. She told me she was going to transfer me to another agent so I could clarify some information and get the process going. Things started going downhill after that. The next agent I spoke to, XXXX, had a very don't care attitude. Her tone was lazy and dismissive and when I explained to her what was going on, she proceeded to tell me that my application for the SAVE plan could not be resubmitted and I would have to apply for a completely different plan, saying the total opposite of what I was told by the previous agent. The more I tried to clarify or reason, she just nonchalantly kept giving me the same generic answer, so I decided to hang up because it was clear that she did not care about helping me at all. I called again the following day and spoke to an agent who gave me different information from the first two. She said she did not see my document showing my income and that my loan payment would not be able to go into forbearance. She said that I needed to pay the amount owed even though I told her my application was denied due to error on the company 's end, and even though I told her an agent told me my payment could be put into forbearance because I can not afford it. Overall, she lacked empathy. So you can understand my confusion and frustration after speaking to XXXX different agents and getting XXXX different types of information/answers/solutions. The third agent proceeded to say that she would need to guide me through the process of uploading my document or she could she transfer me to another agent, and I chose the latter because I know I did my part and really wanted to speak to someone who would understand that and be more helpful. The fourth and final agent I spoke with was XXXX. And I just want to say THANK YOU XXXX!! She was receptive, understanding, respectful and lead me to a fair solution. She understood where I was coming from completely and submitted a request for forbearance of my payment as well as resubmitted my application for the SAVE plan, which XXXX said I couldn't. She also clarified my document was there, which the XXXX agent said it wasn't. I understand the long wait times though frustrating, but what I don't understand is the lack of care and empathy for clients as well as the misinformation confidently being relayed. I don't understand why it took XXXX agents to get me where I need to be. This was an extremely difficult and frustrating process when it didn't have to be. The burden of debt is overwhelming enough, and to get so much resistance from the people who are supposed to be helping you is so sad, frustrating, and disappointing. I hope going forward they treat their customers better.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NY
Zip: 12203
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: Incorrect information on your report
Subissue: Account information incorrect
Consumer Complaint: My student loan with Mohela has been forgiven. It still shows up on my credit report months later. I have disputed it with XXXX but they have not cleared it. When I contact Mohela via phone or online, they can not even view my account anymore to assist with this since there is no balance.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: TX
Zip: 78132
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: Received bad information about your loan
Consumer Complaint: My name is XXXX XXXX. I am a student loan borrower. I was still making student loan payments during the XXXX student loan payment pauses from XX/XX/XXXX to XX/XX/XXXX as my employer was not qualified for the Public Loan Forgiveness . However, because of the recent waiver change and the new law in California ( U.S. Department of Educations updated Public Service Loan Forgiveness ( PSLF ) program launched on XX/XX/XXXX, and will now allow eligible California physicians to participate in the program, despite our state prohibitions on physician employment by private non-profit hospitals, clinics, foundations and other health care entities ), my employer for the past 2 years is now qualified for PSLFs. I have contacted Mohela, my loan servicer, to request refund for the payment made during this time as I was not required to make payment during this COVID-19 pause. I was informed by Mohela that the deadline has passed to ask for refund. I have never received any contact or update from Mohela regarding this. Therefore, I requests to have these payment to be refunded to me.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 92234
Submitted Via: Web
Date Sent: 2023-10-11
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A