Date Received: 2023-09-22
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I was on REPAYE and applied for SAVE because MOHELA wasnt updating it. I did it through StudentAid.gov with my tax information coming from the IRS. My payment was XXXX under SAVE. Mohela processed my IDR info and changed my payment back from the SAVE payment to the REPAYE payment. They are billing me incorrectly and I want it fixed.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: PA
Zip: 17011
Submitted Via: Web
Date Sent: 2023-09-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-22
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Have been in contact with Mohela for months on updating correct payments on XXXX. They continue to tell me it will be updated in XXXX business days each time. I have been calling on this since XX/XX/2022, its has been 10 months now with incorrect information.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: TX
Zip: 77380
Submitted Via: Web
Date Sent: 2023-09-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-22
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: My student loans have been on an IDR plan for almost 10 years. On XX/XX/XXXX, MOHELA changed the payment plan type of my loans from my IDR payment plan to the standard repayment plan. I contacted MOHELA and they told me I would have to resubmit a new IDR application, as they could not automatically revert my loans back the the ICR plan I have been on for years. It is now going on a month and they have yet to process the application to put my loans back on the original ICR plan. This delay is causing me to have to repay an amount larger than anticipated. It also affects my PSLF count, for I am a federal government employee ( USPS ). Can you please assist in getting my IDR application process so the error MOHELA made can be corrected.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MI
Zip: 48203
Submitted Via: Web
Date Sent: 2023-09-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-22
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: On XX/XX/XXXX I recieved a message from Mohela stating that there was a change in repayment terms. I recieved this message on XX/XX/XXXX, but it is dated XX/XX/XXXX. I was previously on REPAYE plan ( IDR approved XX/XX/XXXX ), which was changed to automatically to the SAVE plan. All three of my loans, previous to XX/XX/XXXX were on the SAVE plan and entered into the PSLF tracker. XXXX XX/XX/XXXX, my largest loan was moved from the SAVE plan into the LEVEL or standard repayment plan, with no information why this happened. I have been approved on the the PSLF plan since XX/XX/XXXX. I applied for PSLF in XXXX, XXXX. I had to resubmit my PSLF application three times, because I was told that Mohela was having trouble with faxed submissions. I would fax my application. Wait 90 days. Then, after the 90 days, I would have to call them, regarding the status of my application. I would then be told I had to resubmit it. This cycle only ended in XXXX, XXXX, when my application was processed and accepted. I called Mohela on XX/XX/XXXX. I was on the phone for two hours. The representative could not tell me why or how my loan was moved from the SAVE plan and to the Standard Plan. This is resulting in an untenable monthly payment. I was told I had to self-recertify and apply for SAVE again. This was puzzling because they should have this information from the approved IDR application from XX/XX/XXXX. I was told I then needed to wait up to ten business days for the self-recertification to be processed. As of XX/XX/XXXX, it is not processed. Nor do I have information on when my payment is set to resume. The representative couldn't tell me that. Moreover, on the Mohela website, there is no due date or amount entered, as of XX/XX/XXXX. In summary, I was taken off the SAVE plan and entered into the LEVEL ( standard ) repayment plan with no communication, resulting in a very substatial increase in my monthly payment. Representatives could not tell me why or how this happend. I had to self-recertify over the phone, when my IDR application was accepted almost a year ago. Payments are to resume in 9 days, I have no information regarding the amount I will owe, nor do I have a due date.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: WY
Zip: 82009
Submitted Via: Web
Date Sent: 2023-09-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-22
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I have 8 direct Federal loans serviced by Mohela. I made a payment on XX/XX/23 before repayments restarted so I could target my highest interest loan. I paid enough so that the interest and principle on that loan would be completely covered by the payment. I specifically requested to Mohela to direct the entire payment to that one loan. Initially it appeared that this was done, my principle for that loan dropped down to {$0.00}. However on XX/XX/23, this payment was retroactively changed so that it paid off all the interest for all my outstanding loans before it went to the loan I requested. As a result I now have a large outstanding principle on the loan I directed the payment towards. Not only is this sneaky since this was done retroactively ( and I have documented evidence that the listed principle for that loan was {$0.00} earlier this month ) it is a way of trapping people with student loans with their highest interest loans.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: TX
Zip: 75206
Submitted Via: Web
Date Sent: 2023-09-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-22
Issue: Struggling to repay your loan
Subissue: Problem with your payment plan
Consumer Complaint: On XX/XX/23 I received notification from MOHELA that I was on the SAVE plan. This is great because I was on IDR before and on PSLF track since I work for the state. For the consolidated loan my bill was {$0.00}. However, there was only one loan listed on there. I asked them what about the others because I have more than one loan on the account but the total due said something around {$210.00}. I received a notification back to give them a call to discuss this after asking this. I tried. I am unable to get through on the phone. On XX/XX/23 I emailed again because I am unable to get through on the phone. I was on the SAVE plan and then suddenly without warning I am on the LEVEL plan and my bill triples! I have now tried contacting them multiple times via phone and email. Both go unanswered. I have sent additional emails on XX/XX/XXXX and XX/XX/XXXX and still have yet to receive a response. I recently resubmitted my IDR documents on the XXXX website since they took me out of SAVE and still my payment is showing double what it was and I can't seem to get anyone on the phone or to answer the emails to find out what's going on. I am not going to be able to make the payment they are requesting and I can't even get in touch with anyone about that. They have no problem sending me a bill and changing things on me without warning but they are not able to answer? I am so frustrated with this whole process. It's bad enough they won't count half my time as a public service worker for the state towards my PSLF progress, to have these troubles on top of it is just absolutely ridiculous! I need help please.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 91913
Submitted Via: Web
Date Sent: 2023-09-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-22
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: XX/XX/XXXX - Contacted MOHELA customer support to inquire line item detailed as Accrued Interest as of XX/XX/XXXX ( date of call ). Was informed that this was the amount of interest accrued on the summation of loans from date of issuance of loans. I inquired and questioned this reasoning as the original balance of loans was {$230000.00} with current principal balance of {$300000.00} and a total payoff balance of {$310000.00}. The difference of {$7900.00}, which they were claiming was the accrued interest ; the inquiry for the call. Upon questioning I was placed on hold for them to confer with a supervisor. Was told this was " capitalization ''. I responded with explanation that capitalization would already include accrued interest in balance. After multiple holds was told that I would be given detailed information on loan via mail and confirmed mailing address. To date I have received no information from MOHELA in regards to my concerns, however have since received letter from where I paid off one of the loans. This totaled {$33000.00} ; {$32000.00} ( listed as current principal ) + {$880.00} ( accrued interest as of XX/XX/ ) on an original loan amount of {$24000.00}, which already would have interest on the balance of {$8000.00}, ie capitalization. I was not satisfied with explanation as I would have anticipated that balances would have been in total, current principal, going into the COVID interest freeze period.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: KY
Zip: 40205
Submitted Via: Web
Date Sent: 2023-09-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-22
Issue: Dealing with your lender or servicer
Subissue: Problem with customer service
Consumer Complaint: I sent a message to MOHELA requesting correction of the number of qualfying loan payments for PSLF on XX/XX/2023. MOHELA ask me to submit a new PSLF application with my employer which I have done so promptly. On XX/XX/2023, I requested follow-up on the processing of my application, as my qualifying payments are still not showing correctly. They said to allow 5 business days to process. On XX/XX/2023, the changes are still not corrected, and I followed-up again, they said to allow another 5 business days to process. On XX/XX/2023, the changes are still not corrected 111 days later ( giving them +106 days to correct my payments ), and they have not done so and did not reply back. On XX/XX/2023, I notified MOHELA that I am filing a complaint with CFPB.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: PA
Zip: 19446
Submitted Via: Web
Date Sent: 2023-09-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-22
Issue: Struggling to repay your loan
Subissue: Problem lowering your monthly payments
Consumer Complaint: The new XXXX plan was announced. Both my and my husband were on XXXX and have now been placed on XXXX. Now our payments are double what they were - {$1300.00} a month. We can not afford this and the dept or education website indicates our payments should be {$400.00} using their calculator with our IRS data. I have tried calling Mohela five times. Each time spending XXXX minutes on hold. Cant get someone on the line. I emailed and got a message back saying to call. They want to charge us {$950.00} more for our loans than what the department of education says. I cant not pay the loan or it will damage my credit. This entire process has been ridiculous. I have wasted XXXX hours of paid time off trying to deal with the mistake of Mohela and dont know what else to do.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MN
Zip: 55423
Submitted Via: Web
Date Sent: 2023-09-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-22
Issue: Struggling to repay your loan
Subissue: Problem with forgiveness, cancellation, or discharge
Consumer Complaint: I have been paying on my student loans for over 20 years now. Last year, in XX/XX/XXXX, I consolidated my previous student loan into a XXXX XXXX XXXX and Mohela became my loan servicer. I applied and recieved XXXX before the deadline that the limited waiver was over. I am a teacher, and I have been working for the same employer/school for 24 years. My employer has completed the XXXX help tool and is a qualifying employer for XXXX. I was able to qualify for XXXX XXXX payments, but it should have been all XXXX payments. Mohela stated that those were from payments made from XXXX XXXX. I knew that I should have more payments made, but Mohela had stated that no payments were made from XXXX. I DID make payments from XXXX through a loan company called XXXX XXXX XXXX XXXX and have the bank statements to prove it. Several years ago, XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX, and XXXX XXXX XXXX XXXX XXXX ( XXXX ), who was a contractor that serviced student loans for lenders under the XXXX XXXX XXXX XXXX XXXX ( XXXX ) was involved in a lawsuit with the Department of Education involving allegations that it violated the False Claims Act by submitting or causing the submission of false claims to the Department of Education. Prior to the lawsuit settlement, XXXX ( XXXX ) paid {$1.00} XXXX to the Department of Education under a remediation plan to partially resolve the allegations and received a credit for that payment under the settlement agreement. The settlement announced allegations that between XXXX and XXXX, XXXX ( XXXX ) knowingly failed to make required financial adjustments to borrower accounts and improperly treated some borrowers as eligible for military deferments when they were not, resulting in incorrect reporting to the Department of Education and losses to the United States. XXXX XXXX XXXX XXXX stopped servicing commercially held federal student loans in XX/XX/XXXX. XXXX knowingly failed to make the required finacial adjustments to my account and report those payments made to the Department of Education. Therefore, it looks as though I never made a payment from XXXX. I called my bank, and my bank was able to verify at least 15 Payments made to XXXX from XX/XX/XXXX through XX/XX/XXXX. My bank statements were unable to go back any further, but I know more payments were made. I have attached the my bank statements verifying payments made, a letter from my bank verifying payments made, and the invoice from XXXX to Mohela and to XXXX. Please note that my account has not been updated since XX/XX/XXXX, so I should have four more qualifying payments added. This new total should be over XXXX XXXX qualifying payments made. Therefore my student loan should be forgiven through the XXXX waiver. Any help would be appreciated in trying to get this resolved. It has been over a year now. I have been trying to get this resolved since I applied for the new loan in XX/XX/XXXX. I have sent MULTIPLE emails, I have talked to MULTIPLE people from Mohela AND XXXX, and I can not get any help from anyone. Mohela said they would do a review, but no one has contacted me, and I recieved a letter today stating that I have only made XXXX payments. I'm not sure what else to do. It is as if no one will actually take the time to review the issues that I have, or will take the time to actually understand what happened and help me. All I receive are it will be at least 90 days before we know anything, or Case Closed through XXXX.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MO
Zip: 634XX
Submitted Via: Web
Date Sent: 2023-09-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A