Date Received: 2023-07-12
Issue: Dealing with your lender or servicer
Subissue: Problem with customer service
Consumer Complaint: I submitted a consolidation request in XX/XX/XXXX to consolidate a total of {$280000.00}, which was processed but was disbursed for the incorrect balance of {$9300.00}. All loans except for my XXXX loans ( which were also included in the request ) have been paid in full through the consolidation, but the balance is not reflecting that. On XX/XX/XXXX, I contacted Mohela and spoke with a supervisor named XXXX, who said she would be submitting a request to have the missing balance added to the consolidation. She said she has been seeing it happen too and to allow apprx. XXXX business days for processing. I called back on XX/XX/XXXX because the balance has not been updated on my account. Spoke with an agent, who then told us it wasn't possible for them to fix it, so the call was escalated. I was on hold for almost an hour, so I called back and spoke with XXXX who said the request was still pending to have the balance adjusted. Mercy then offered to escalate the call again, and I was placed on hold again. I was unable to get through to a supervisor due to the long hold times, and the issue has yet to be resolved.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 94110
Submitted Via: Web
Date Sent: 2023-07-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-10
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: On Mohelas homepage near the bottom they have separate sections for links related to : Federal Direct Loans Repayment Options : https : //www.mohela.com/DL/resourceCenter/RepaymentPlans.aspx Deferment & Forbearance : https : //www.mohela.com/DL/resourceCenter/RepaymentOptions.aspx XXXX XXXXXXXX XXXX XXXX ( FFELP ) Repayment Options : https : //www.mohela.com/DL/resourceCenter/RepaymentPlans.aspx Deferment & Forbearance : https : //www.mohela.com/DL/resourceCenter/RepaymentOptions.aspx XXXX ( Owned by MOHELA ) Loan Modification : https : //www.mohela.com/DL/resourceCenter/CashLoans/CashLoanModification.aspx Deferment & Forbearance : https : //www.mohela.com/DL/resourceCenter/CashLoans/OptionsToPostponeRepayment.aspx Notice : XXXX have their own resource links, but the links for XXXX and Direct Loans route you to the same page ( as if there is no difference ). However, this is VERY misleading to end users who have XXXX XXXX XXXX XXXX where the federal government set the terms of these federal loans, yet they are completely owned and managed by the private lender ( in this case MOHELA ). Direct loans had a pandemic payment and interest pause that was never offered to MOHELAs XXXX borrowers, though MOHELA has notices all over their site while Im logged in informing me of the pause as an option, because again their website doesnt acknowledge the difference until you try to get the advertised relief. MOHELAs own employees didnt fully understand the differences in my loan product when I contacted them for help in the spring of XXXX. Their website failing to distinguish between these loan products over all these years is a key reason why neither employees nor customers understand. Now back to the forbearance options for both loan types ( Direct and XXXX ) that take you to https : //www.mohela.com/DL/resourceCenter/RepaymentOptions.aspx I happen to have a joint spousal consolidation XXXX loan XXXX XXXX passed the Joint Consolidation Separation Act last year, and President Biden signed it into public law 117-200 on XX/XX/XXXX. To date the Department of Education ( and the Federal Student Aid office ) have failed to implement this law. There is no process available to separate my loan and enter the XXXX XXXX program and I have not been offered parity with the XXXX XXXX borrowers ( who are still enjoying their pandemic payment and interest pause to this day ). Federal Student Aid did add updates on the studentaid.gov website XX/XX/XXXX ( https : //studentaid.gov/announcements-events/joint-consolidation-loans # notification-of-intent-to-apply-for-separation-of-a-joint-consolidation-loan ) explaining that they wont implement this law until late XXXX at the earliest however that borrowers should be placed in administrative forbearance while waiting for the implementation. I followed studentaid.govs instructions opening complaints as directed ( XXXX/XXXX/XXXX & again XX/XX/XXXX ) requesting they intercede with MOHELA to request administrative forbearance on my behalf. The first XXXX complaints were closed without any resolution. In XXXX, XXXX updated their announcement/instructions for joint consolidation loans clarifying that there were differences in forbearance offered to XXXX vs XXXX joint XXXX loans while we wait for them to implement this law. XXXX borrowers should contact their lender to request discretionary forbearance and the Federal Student Aid office encourages the private lenders to XXXX such forbearance. I opened another complaint with FSAid on XX/XX/XXXX, and this complaint too has been closed, but at least this time there was an email reply stating the following : -- -- -- -- -- -- -- -- -- -- We have received your request to separate your joint consolidation ( spousal ) loans into individual Direct Loans. The Department of Education is still developing the separation and consolidation process authorized by the Joint Consolidation Loan Separation Act. We will hold your request until the new process is available, and then notify you once you are able to apply. Forbearance You may be eligible to temporarily pause payments due on your joint consolidation loan until we can separate the loan by opting into forbearance. To opt into forbearance, please contact your servicer and request to be enrolled in forbearance. XXXX servicers are encouraged to XXXX forbearances until the new process is ready. In general, interest will still be added to your loans during forbearance. However, if your joint consolidation loan is owned by the Department of Education, interest wont accrue until the COVID-19 payment pause ends. -- -- -- -- -- -- -- -- -- -- Here the FSA office communicates directly with me explaining that they wont implement the law yet, and Im still stuck in a private loan for as long as they want to keep me there ( regardless of the law ) and while we wait, since the loan is private, Im still going to owe interest because of the private nature of my federal loan. Please contact my servicer to request forbearance. Translation : FSA wont help because its a privatized federal loan, and its up to me to deal with my private lender : MOHELA. As shown in my attached PDFs printed from MOHELAs website, the do not provide any acknowledgement that these loans exist or qualify for forbearance. No results are found when you search the MOHELA website for joint consolidation or spousal consolidation. The MOHELA forbearance webpage has no mention of our law being passed or offering forbearance while we wait for implementation. Instructions from the federal student aid office ( on the studentaid.gov website ) have been in place since XX/XX/XXXX recommending forbearance for joint consolidation loans, and the law has been in place for 9 months. There is no escape from these joint XXXX ( privatized federal ) loans that were removed from legal definition in XXXX by striking subparagraph ( C ) '' from subsection ( a ) ( 3 ) of Section 428C ( 20 U.S.C. 1078-3 ) as part of the Deficit Reduction Act of 2005 ( public law 109-171 ). Congress passed a law in XXXX to fix their previous mistake and allow us to finally exit and rejoin the rights and protections offered by truly XXXX XXXX XXXX, but the student aid office refuses to implement the law for at LEAST 2 years, maybe more. Meanwhile private lenders like MOHELA continue do as they please. They have not trained their employees, and their website shows they refuse to acknowledge us, the new law ( Joint Consolidation Separation Act : now public law 117-200 ), or recommendations from the federal student aid website.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MO
Zip: 63385
Submitted Via: Web
Date Sent: 2023-07-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-10
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: In XX/XX/XXXX, a complaint was made with Federal Student Aid concerning the principal amounts that Mohela stated that was owed by me. A call was made after speaking with Student Aid to Mohela requesting that they send to me what was used to determine the amount that was owed by me because they amounts that they are saying was owed is not correct. At the time of my filing the complaint with your Agency, no documents were provided by me. This time there are documents to show that before XXXX, my total debt with XXXX XXXX and the Department of EducationXXXX totaled {$46.00}, XXXX with the dates of XX/XX/XXXX in question as these two debt amounts, total the same. When XXXX XXXX transferred the debt to XXXX, they correctly XXXX the debt out with them. When the Department of EducationXXXX transferred the debt to XXXX XXXX , they did not, XXXX the amounts in their system once XXXX XXXX accepted the loan debt. A dispute was filed with the credit bureaus and XXXX was the only one to have the Department of Education/XXXX to correct was showing. After filing a complaint with the Federal Student Aid Ombudsman because Mohela states that was is owed is over {$57000.00} and this is not correct because as an undergraduate, {$46000.00} was to the total loan amount that was received by an undergraduate before XXXX. Mohela finally sent and was received by me on XX/XX/XXXX, what information they used. They appear to have increased the original principal amounts to show $ XXXX and they used XXXX and FedLoan Servicing and possibly the debt from XXXX from XXXX XXXX that was forgiven as they lost accreditation and the school closed its doors and no grades were given. The total principal amount changed with Mohela and it is my understanding that this should not be. Attached are my documents.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: OH
Zip: 445XX
Submitted Via: Web
Date Sent: 2023-07-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-10
Issue: Struggling to repay your loan
Subissue: Can't get other flexible options for repaying your loan
Consumer Complaint: While trying to enter the XXXX XXXX XXXX XXXX program, I was denied because of loans taken out, as I later discovered on my record, from XXXX. I was able to figure out these were from XXXX University. My year of XXXX is XXXX, so I know I didn't take these out. They are in default, and the agencies that held them last on record are no longer in business, and I can not contact them. While I eventually went to college myself, it was hard in XXXX to obtain a loan, and I believe this may be the reason. Despite keeping track of or credit, my credit has always been low, and I have not been able to purchase a house either, but the main thing for me is to get this cleared up ASAP. I have contacted the Department of Education on the matter, but after talking with XXXX about it, they suggested contacting you because there may be years of abuse of my personal information.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MA
Zip: 015XX
Submitted Via: Web
Date Sent: 2023-07-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-10
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Called deparyment of education they refuse to discuss or discharge loans to XXXX to refund remainder they said would from vlass action suit agaonst college that was settled XX/XX/XXXX i paid off loans XXXX XXXX XXXX college witheld information that impacted hundreds of students school contacted me in XX/XX/XXXX to inform of refund XXXX sent me partial refund and a letter that they were processing remainder of loans but still have no srnt Dept of Education wnt discuss just keep saying they are processing
Company Response: Company believes it acted appropriately as authorized by contract or law
State: FL
Zip: 33542
Submitted Via: Web
Date Sent: 2023-08-23
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-10
Issue: Incorrect information on your report
Subissue: Account information incorrect
Consumer Complaint: on XXXX XXXX XXXX i received a letter from XXXX stating that based on a XXXX XXXX XXXX case my loan discharge was approved in the amount of {$49000.00} a total of XXXX loans from XXXX XXXX XXXX. I called and spoke to XXXX because my credit report had new loan information for the loans listed on my credit report with amounts owed. I was told that in order for XXXX to discharge properly they had to add the balance of each load and then submit to XXXX balance each loan. After speaking to XXXX i called Mohela who my loan is with and since i had already entered into an income driven loan and consolidated i explained the letter and what XXXX had told me. I was instructed by Mohela to wait for XXXX to reach out and that the balance of $ XXXX would be adjusted correctly once the information was received. I have talked to Mohela today and they are instructing me to go back to XXXX XXXX XXXX and restart the process to get the information that i already have in order to investigate on their end. I know that my credit reporting should not be impacted by this information and i want to file a complaint. I have been told that i have to wait for this to be done because of the covid forbearance that my loan is currently under.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 95361
Submitted Via: Web
Date Sent: 2023-07-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-10
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Mohela Improperly Changed the Renewal Date of my Income Based Repayment Plan Despite previous complaints to my Senator, the CFPB, FSAID, and correspondence from Mohela acknowledging the correct renewal date of my Income Based Repayment plan, Mohela is still incorrectly and illegally changing my Income Based Repayment plan renewal date to XX/XX/XXXX See figure 1. The correct recertification date is XX/XX/, as acknowledged by Mohela in Mohelas response to my first CFPB complaint against Mohela ( CFPB Complaint XXXX XXXX ). See the attached file titled Mohela - CFPB Response XXXX XXXX which contains correspondence from Mohela indicating the correct date of XXXX I have also attached the Memo referenced in my original complaint CFPB Complaint XXXX XXXXXXXX. The memo provides proof of the correct renewal deadlines in the form of official correspondence from the prior servicer ; information that Mohela should have and should be in their systems.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: TX
Zip: 78731
Submitted Via: Web
Date Sent: 2023-07-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-11
Issue: Dealing with your lender or servicer
Subissue: Problem with customer service
Consumer Complaint: I submitted a PSLF form to update my monthly tracked payments in XX/XX/XXXX. The payments were never processed or updated. I tried to follow up by phone and there is no option to speak directly with an agent. I resubmitted a new form ( and asked my employer to re-do their portion ) and submitted in XX/XX/XXXX. I received a PDF form through my MOHELA account that the form was missing employer information in section 4 that is NOT missing. I attempted to send a message through the form and the site redirected me to call them ( it did not allow me the option to send a message about PSLF through their site ). Again, there is no way to speak to an agent : just pre-recorded messages.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CT
Zip: 06511
Submitted Via: Web
Date Sent: 2023-07-11
Company Response to Consumer: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-11
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I have been contacting student loan servicer MOHELA for months ( XXXX through XXXX ). I have also contacted Federal Student Aid numerous times. I have been on hold for hours with MOHELA as well and was transferred to an elevated department several times to have questions answered, but could not remain on hold ( after 1 hour+ waits ). I was a public school teacher for 26 years. I am eligible for the PSLF. I had been denied PSLF in XXXX, under the previous administration and was not provided with any detail about why I was not eligible or what I could do to meet the PSLF guidelines. During the summer of XXXX when outreach was being made to PSLF employees and the PSLF program was re-structured, I was initially told to download the Direct Loan consolidation form and the PSLF form from MOHELA 'S website. I worked with " XXXX '', a student loan support non-profit recommended by the AFT to assist teachers in obtaining PSLF. XXXX faxed my PSLF form and the loan consolidation form ( found on MOHELA 's website ) to MOHELA after I completed both. I had a current loan with XXXX, which was not an eligible servicer for the PSLF. XXXX has proof of FAX and has shared it with me. I also submitted an additional PSLF form as my employer asked to submit it directly. I waited from XX/XX/XXXX to XX/XX/XXXX, for my forms to be processed. I was told I needed to wait 30, then 60, then 90 days. In XX/XX/XXXX, I was informed that my Direct Loan Consolidation form was never received or processed by MOHELA. I was informed that the only way to consolidate an existing loan into a Direct Student loan was through the Fed. Student Aid website, despite a loan consolidation form being on MOHELA 's website with instructions to fax it in. In XX/XX/XXXX, I resubmitted a Loan Consolidation form to FED Stu AId. It has been processed and is now viewable on my MOHELA account site. I have now been advised that I am waiting for prior payment counts from my prior servicer ( XXXX ) to be updated in the National Student Loan Data system. I have been informed that this is done manually and may take until XXXX. The false promises of 30, 60 or 90 day processing for the PSLF is not relevant if my prior payment counts can not be calculated until XXXX Who performs this count manually? How many people are employed in this function? With so many pending PSLF forms, how is this critical function expedited? Where can I complain? I have filed complaints with Fed. Stu Aid, MOHELA and will now escalate to legislators. My PSLF form was submitted in XX/XX/XXXX and it is XX/XX/XXXX and I am now waiting for manual counts of payments to be made to prove my PSLF eligibility. I made on-time payments monthly since XXXX, and have far exceeded the 10 year PSLF requirement XXXX Additionally, my StudentAID.gov account shows two loans on my account ( the old loan and the newly consolidated loan ) in essence doubling my debt. I have been told this will be corrected in 90 days. Please advise on my recourse for expediting payment counts in the NSL Data System.I do not understand why so many public service workers are waiting for discharge and why each step of the process is not clearly outlined so it can be tracked. We have a loan forgiveness program riddled with delays and lengthy processes that are not fully explained.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 94122
Submitted Via: Web
Date Sent: 2023-07-11
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-09
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Mohela agreed to refund loan that was paid sent letter that would do in 2 parts refunded partial amount said waiting on discharge by dept of education who refuses to assist loan was part of class action suit settled in florida XX/XX/XXXX loan paid off XXXX XXXX XXXX school notified of suit and refund inXXXX partial credit recieved XX/XX/XXXXXXXX XXXX XXXX XXXX with Mohela now avoiding me have attorney but trying to resolve without filing suit
Company Response: Company believes it acted appropriately as authorized by contract or law
State: FL
Zip: 33542
Submitted Via: Web
Date Sent: 2023-07-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A