Date Received: 2023-09-27
Issue: Dealing with your lender or servicer
Subissue: Problem with customer service
Consumer Complaint: I applied for SAVE plan. Of the 11 loans I have with Mohela, only 4 are on the SAVE plan, while the other 7 plans say Level. I am unable to reach anyone due to long wait times. I logged in to plan to set up my payments to restart, however, theyre not accurate with only 4 of 11 on the correct income driven repayment plan. I called on XXXX and waited for greater than 30 minutes before I needed to hang up. The issue is unresolved. I can not make the stated minimum payment of {$2800.00} by XX/XX/2023. The estimated repayment amount with the loan simulator is around {$82.00}.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: IN
Zip: 460XX
Submitted Via: Web
Date Sent: 2023-09-27
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-27
Issue: Dealing with your lender or servicer
Subissue: Don't agree with the fees charged
Consumer Complaint: It has only been one month since interest accruement restarted. I owe a Current Principal of {$48000.00}. They say the Accrued Interest as of XX/XX/23 is {$460.00}. However, my interest rate is 6.800 % and one month of interest should be around {$270.00} not {$460.00}. Please look into this.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: XXXXX
Submitted Via: Web
Date Sent: 2023-09-27
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-27
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Here is the original message I sent to Mohela : Dear XXXX XXXX, I hope this letter finds you well. I am writing to address some significant concerns I have regarding the handling of my student loans by the XXXX organization. I believe it is crucial to bring these matters to your attention, even though I understand that XXXX XXXX is no longer my servicer. My aim is to request that the federal government and/or Mohela, my current servicer, thoroughly investigate this matter regarding the removal of my loans due to what I believe to be illegal practices by student loan companies. First and foremost, I wish to highlight several instances where your organization 's actions appeared to be inconsistent and, in some cases, legally questionable. These actions have not only affected my financial stability but have also had severe emotional repercussions. XXXX and Denial of Application : I experienced a perplexing situation wherein my application for loan assistance was initially accepted, only to be subsequently denied without a clear explanation. This uncertainty caused significant anxiety and stress, impacting my overall well-being. Loan Transfer and Redirection : My loans were transferred to XXXX XXXX and then redirected back to XXXX. These abrupt changes in loan servicing created administrative chaos and made it challenging to manage my financial obligations effectively. The constant uncertainty surrounding the status of my loans has led to persistent anxiety. Misinformation About Eligibility : I was informed that I needed to make ten years of payments when, in reality, the program 's requirements were different. This misinformation led to unnecessary financial burdens, mounting stress, and sleepless nights as I struggled to comprehend the situation. Failure to Process Submitted Forms : On several occasions, I resubmitted required forms, only to receive continued denials without any follow-up or clarification on the specific issues that led to these denials. This lack of communication further exacerbated my anxiety. Increased Interest Rates : The fluctuation in loan servicing caused delays in processing, resulting in heightened interest rates. These additional costs have further strained my already fragile financial situation, intensifying my anxiety. Forbearance Without Consent : My student loans were placed into forbearance for a year without my consent or request. This adversely affected my credit score and, consequently, my ability to secure housing. At one point, I lost home ownership due to the negative impact on my debt-to-income ratio, causing immense stress and emotional distress. In addition to the significant financial hardships caused by these issues, the mental stress and anxiety have taken a considerable toll on my overall well-being. The constant turmoil and uncertainty surrounding my student loans have affected my ability to focus, maintain healthy relationships, and enjoy life without persistent worry. While I understand that XXXX XXXX is no longer my servicer, I believe it is imperative that the federal government and/or Mohela thoroughly investigate the matters I have raised regarding the removal of my loans due to what I believe to be illegal practices by student loan companies. I implore you to thoroughly investigate this matter and take corrective action as necessary. Ensuring fair and consistent loan servicing practices is essential for individuals like me who rely on these programs to pursue higher education and achieve financial stability. I appreciate your prompt attention to this matter and look forward to any assistance and support you can provide in addressing these concerns. MOHELA 's XXXX : Dear XXXX XXXX, Thank you for contacting MOHELA. Our records indicate, a response was provided to many of your concerns with a document dated for XX/XX/XXXX. A digital copy has been sent to your web account in a separate correspondence. If you would like to report concerns with a prior servicer, you will need to contact studentaid.gov and file a complaint with them. The Revised Pay as You Earn ( REPAYE ) plan has changed to the Saving on A Valuable Education ( SAVE ) plan which may significantly decrease monthly payment amounts compared to all other IDR plans. If you are already enrolled in the REPAYE Plan you will automatically be put on the SAVE Plan. More information on these upcoming changes is available at : https : //studentaid.gov/SAVE. Congress recently passed a law preventing further extensions of the payment pause. Student loan interest resumed on XX/XX/XXXX, and payments will be due starting in XXXX. We will notify borrowers well before payments restart. The earliest first payment due date after the payment pause ends will be no sooner than XX/XX/XXXX. On XX/XX/XXXX, the XXXX Department of Education ( XXXX ) announced several changes and updates that will bring borrowers closer to forgiveness under income-driven repayment ( IDR ) plans. These adjustments to accounts include conducting a one-time revision of IDR payment counters to address past inaccuracies and permanently fix IDR payment counting by reforming EDs IDR tracking procedures going forward. Based on the newly eligible months from the one-time account adjustment, borrowers who have reached 240 or 300 months ( as applicable ) worth of payments for IDR forgiveness or 120 months of PSLF will begin to see their loans forgiven in XXXX. The Department will continue to discharge loans as borrowers reach the months needed for forgiveness. All other borrowers will see their accounts update in XXXX. More information on these upcoming changes is available at : https : //studentaid.gov/announcements-events/idr-account-adjustment. If you have any other questions or concerns, please contact us at the number listed below. Sincerely, Customer Advocacy Team Phone XXXX, Fax XXXX, TDD Dial XXXX, XXXX M, XXXX XXXX XXXX XXXX XXXX Correspondence : XXXX XXXX XXXX, XXXX, MO XXXX Payment : Department of Education MOHELA XXXX XXXX XXXX XXXX XXXX XXXX, MO XXXX mohela.com fb.com/MOHELA.usa @ MOHELA This message, from a debt collector, is an attempt to collect a debt. Any information obtained will be used for that purpose. California residents : The state Rosenthal Fair Debt Collection Practices Act and the federal Fair Debt Collection Practices Act require that, except under unusual circumstances, collectors may not contact you before 8 a.m. or after 9 p.m. They may not harass you by using threats of violence or arrest or by using obscene language. Collectors may not use false or misleading statements or call you at work if they know or have reason to know that you may not receive personal calls at work. For the most part, collectors may not tell another person, other than your attorney or spouse, about your debt. Collectors may contact another person to confirm your location or enforce a judgment. For more information about debt collection activities, you may contact the Federal Trade Commission at 877.FTC.HELP or www.ftc.gov. ATTENTION MASSACHUSETTS BORROWERS : If you are struggling with your student loans, please fill out the form located at : https : //www.mass.gov/forms/submit-a-student-loan-help-request to get help from the Ombudsman 's Student Loan Assistance Unit . State of XXXX 's Student Loan Assistance Unit XXXX My follow-up response XX/XX/XXXX : Dear Mohela, I would like to thank you for your recent response to my complaint. While I appreciate your prompt attention, I would like to address a few points in your reply. First and foremost, I want to emphasize that when you acquired someone else 's debt, you also assumed the associated responsibilities, including rectifying any issues tied to those loans. My initial complaint was a direct result of concerns related to the handling of my student loans, which I believe have been mishandled. It is essential to recognize that the loans in question were previously managed by XXXX, an entity that has since been closed. This has raised significant challenges in addressing and resolving the issues I have encountered. I understand that XXXX ' closure is not under your control, but it does not absolve you of the responsibility to address these concerns. I would also like to inform you that a formal complaint has already been filed against Fedloans due to their actions in managing my student loans. In light of the transfer of these loans to Mohela, the issues persist and continue to affect my financial situation. Therefore, I intend to file a similar complaint against Mohela, as the issues remain unresolved. My primary goal in raising these concerns is to ensure that the loans currently under your administration are accurately managed and that the challenges I've faced are properly addressed. I believe it is crucial to recognize the legitimacy of the issues at hand and take proactive steps to resolve them. I appreciate your understanding of the situation and look forward to a response that acknowledges the specific concerns I have outlined. It is my hope that we can work together to reach a satisfactory resolution. Sincerely, XXXX XXXX
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MD
Zip: 21228
Submitted Via: Web
Date Sent: 2023-09-27
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-26
Issue: Struggling to repay your loan
Subissue: Problem with your payment plan
Consumer Complaint: I was originally on XXXX plan based on my last income certification of XXXX dollars off my XXXX taxes that i certified in XX/XX/XXXX. I am not required to recertify my income at this time. Also my family size is XXXX and has always been XXXX. Me and my dependent son who is XXXX. My REPAYE payment was XXXX. The XXXX plan is switched to SAVE. My payment should have dropped to XXXX dollars per month under the SAVE calculation. On XXXX MOHELA refigured my payment to XXXX per month under the new SAVE plan. This amount is incorrect. I talked to them on the phone XXXX and submited complaint emails. The payment they calculated was based on XXXX income and no dependents. The problem is they have me having no dependents. They lady on the phone confirmed this and told me it would be fixed and show on my account within three days. This was 8 days ago. With payments resuming soon they need to get my payment amount corrected.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: IL
Zip: 62959
Submitted Via: Web
Date Sent: 2023-09-26
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-26
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I was on income-driven ( IDR ) repayment for about 10 years through XXXX. When it switched to Mohela, I was taken off IDR, without my consent/ knowledge. Initially, they told me it was due to " Covid lapse- when no recertification was done everyone came off and now has to recertify ''. They had me " self-certify '' via phone, twice, both times it was denied and I was told " we need more information from you '' ( contrary to " self-certification '' branding/ messaging ). I spoke no less than six times via phone and sent more secure messages than that- finally I was told, " send in 5 years worth of tax forms, '' after they insisted I hadn't been on IDR for 5 years which is 100 % absolutely not true- I have been on IDR for XXXX yrs. During Covid-19, XXXX, they ( Fedloans ) did not allow us to re-certify since all loans were in forbearance. I sent the tax forms in- they were marked as " duplicate ''. I later called and was told this was a mistake- that it would all be fixed. 4 months later, I am still not on IDR. I have no explanation for why I am not on IDR. I have submitted 5 yrs of tax returns. If I was never on IDR, as they claim, they should have just processed me on it. If I had a 5 year lapse, as they claim, 5 yrs of tax returns and months later I shld be on it. But I have had them check the Natnl Student Loan Database and they are able to confirm that I have been on IDR for XXXX years, with no appreciable laps. I've also got XXXX years of confirmed PSLF ( loan forgiveness counts ) which is literally not possible unless I had been on an IDR plan. Still, I have to await " re-certification '' after multiple denials. I have been reassured that they are backlogged and it will get done. But I am skeptical and have uneasiness that what has been happening for almost 6 months will happen again. I think Mohela got in over their head- promised more than they could deliver- were not willing to spend money on staff, training, etc. The phone wait times are literally over an hour just to speak with someone, every day of the week. Secure messages are only answered by auto-reply " we presume the matter is settled. '' This is impacting all of us, including me, in a very negative way. I've spoken with some very helpful, lovely, representatives there, but the problems persist.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NY
Zip: 120XX
Submitted Via: Web
Date Sent: 2023-09-27
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-26
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I submitted the employment certification form ( ECF ) for the period of XX/XX/XXXX - XX/XX/XXXX on XX/XX/XXXX and my form was processed 6 weeks later. I included my W2 for XXXX, and XXXX and also my last paystub as well. However the PSLF payment count was not accurate ( only increased by 1 ) and did not reflect the number of payments for past 2 years that I submitted the form for. I called Mohela multiple times and waited 2 hours for each phone call. I finally was able to get through to speak to a representative who told me it was a mistake and she requested a manually recount. I asked how long it would take for the payment counts to be updated. She responded saying she has no idea how long it would take?? It seems to be a simple fix and I find it unacceptable with their answer.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 92234
Submitted Via: Web
Date Sent: 2023-09-26
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-26
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: In early XX/XX/XXXX, an associated told me I could submit a formal letter with instructions about how to handle payments over the minimum payment. The intent was for extra payments to apply directly to principal on my loan balances. I mailed that letter to Mohela around XXXX and it was approved on XX/XX/XXXX. I submitted a large payment to one specific loan using the app on XX/XX/XXXX. That payment was applied first to the interest on my loan, contradicting the instructions in my letter. I called around XX/XX/XXXX and an associate assured me that the letter was still in processing, and once that was complete, the adjustment would be made to move that payment to principal on the specific loan I paid. When I checked my account a few days later on XX/XX/XXXX, an adjustment had been made to move my payment from the specific loan I had paid and had been spread across every loan that I have with Mohela, covering almost entirely interest. Approximately 90 percent of this large payment is now applied to interest across six loans, rather than only principal on the one specific loan I paid. Moreover, the very small portion of my payment that went to principal was moved to a lower-interest loan. I called customer service and was told that written instructions for how to handle payments are not applicable and Mohela will always put payments toward interest first. I pointed out that their website specifically states that written instructions apply first, and the default structure of interest-first payments only applies in absence of written instructions. I also pointed out that three other associates had given me different information. Furthermore, there is nothing to suggest that payments can be moved from the loan that was specifically paid by the borrower to other loans under Mohela 's management and distributed however they please. I believe this is in violation of my rights as a borrower in repayment and that this is dangerous and corrupt practice. I am deeply concerned about my ability to manage my own account or to successfully work with this company to repay my debt.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: OH
Zip: XXXXX
Submitted Via: Web
Date Sent: 2023-09-26
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-26
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I have contacted Mohela via email messaging on Mohela Website on 9 separate occasions and at least 3 different phone calls regarding the same topic. My initial message sent was on XX/XX/XXXX and I have a string of messages until XX/XX/XXXX with useless generic responses even after waiting days for an appropriate response. I have called and spoken to XXXX different agents, all which have told me incorrect information despite rules and policies quoted directly from studentaid.gov. I have spoken to XXXX, a supervisor who reassured me that my loan will be processed correctly. She even told me " MOHELA IS A MESS AND WE HAVE TRAINEES ''. To date, my monthly payment is showing more than {$4100.00} per month on a PAYE plan. How is this even possible?? {$4100.00} is more than a standard repayment plan and here I'm listed as a low income plan. I've been advised by Mohela to start payment and recertify immediately. This goes against the recommendations of all my loan advisors, friends, forums, and most importantly IMFORMATION FROM STUDENTAID.GOV.. Lastly a trainee customer service agent actually submitted a recertification process despite me telling her TWICE that I DO NOT GRANT permission to initiate a recertification. My account details are grossly incorrect. Mohela is impossible to call into due to " high call volumes ''. I have tried numerous times without availability. Unfortunately due to long wait times, life moves on and I must return to work. Please fix my Mohela account! This is causing excessive and unnecessary financial burden. It is impossible to budget, or financially plan due to excessive delays and misinformation. This is leading to huge lost in opportunities and financial lost.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 917XX
Submitted Via: Web
Date Sent: 2023-09-26
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-26
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I and my wife have Direct federal loans for graduate school with MOHELA. Earlier this month I logged in to confirm auto payment was setup and the amount was correct, and it was the same as it was when we last paid in 2020. On XX/XX/XXXX I received an email they had " updated '' our XXXX plans. The letters in their system both show XX/XX/XXXX but if you open it, it is dated XX/XX/XXXX. They had us both set at the exact same rate which was double what it was before. Her repayment starts on XX/XX/XXXX and mine on XX/XX/XXXX. Upon looking into this, what happened to me ( and essentially EVERYONE in this situation, if you look on their XXXX or for example this XXXX XXXX : XXXX : XXXX ) is they processed every conversion from REPAYE to SAVE as if they were a single borrower with a family size of 1, yet used the married AGI for income. You can easily show this by entering the information in the studentloan.gov sites calculator as if you had that AGI but were single and getting the number they came up with. On Monday XX/XX/XXXX I spent XXXX hours and XXXX minutes on hold, only to have the guy tell me I was in the wrong department and he had to transfer me. He refused to answer more questions about which department, what option I did wrong, etc. I sat on hold another XXXX minutes before having to leave. On Tuesday XX/XX/XXXX, this morning at XXXX XXXX, I was able to get in pretty quickly, have the staff agree it was a mistake, recalculate it themselves and come up with an amount closer ( XXXX still XXXX $ higher each, when this plan is supposed to be cheaper, despite the AGI for our family essentially being the same ). Because this is so soon before our payments are due, they also were putting us into a forbearance to avoid next week/week after payments at the much higher rate. We are both on Public Service Loan Forgiveness plans, and per their site here : https : //studentaid.gov/manage-loans/forgiveness-cancellation/public-service # qualifying-payments administrative forbearance for collecting supporting documentation should count as qualifying payments, however MOHELA was saying they wouldn't. But for the actions of MOHELA in both A : not properly calculating the amounts and B : not attempting to do this until 11 days ( XXXX business days ) prior to the due date, I would have made a payment and gotten PSLF credit. I don't feel we should be penalized/negated due to their mistakes. Furthermore, after all of that hold time, there is acknowledgement on my account that an IDR recalculation was submitted, but not on my wife 's. Neither have anything about forbearance and both still show we are paying the ~double price next month. I'm hoping with time this corrects but I really don't want to have to call back. MOHELA is clearly not ready for payments to restart, as demonstrated by the dozens of people replying to my comments on reddit in the exact same situation, not to mention the hundreds of other posts I saw on their and XXXX saying the same.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: FL
Zip: 32259
Submitted Via: Web
Date Sent: 2023-09-26
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-26
Issue: Struggling to repay your loan
Subissue: Problem with forgiveness, cancellation, or discharge
Consumer Complaint: To whom it may concern : I have served in the United States ' federal government for over eleven years, submitted my PSLF form for complete loan forgiveness about a month ago, & simultaneously requested that my loans be placed in forbearance while forgiveness was considered. I also emailed the provider ( MOHELA ) to ask if this request for forbearance would be granted approximately a week ago ; however, instead of answering me, MOHELA has seen fit to issue me a bill which is due very shortly. All documentation to support my claims is enclosed & I am happy to provide more as needed. Please advise, thank you!
Company Response: Company believes it acted appropriately as authorized by contract or law
State: VA
Zip: 22401
Submitted Via: Web
Date Sent: 2023-09-26
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A