Date Received: 2024-01-18
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: My complaint and request for help is related to my MOHELA education public service loan forgiveness ( PSLF ) application with MOHELA, operated by the Department of Education. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. I made my 120th qualifying payment in XXXX XXXX and 1 ) submitted my digital employer certification form and 2 ) called to be placed on administrative forbearance while MOHELA reviewed the employer recertification form and updated my qualifying payment count to XXXX. I was placed on administrative forbearance through XXXX XXXX XXXX MOHELA marked my recertification form as a duplicate form. I called in XXXX XXXX asking for them to look at it again and asked if I needed to continue the forbearance period - the response was that I could call back after XX/XX/XXXX to request another forbearance period. My employer recertification form was ( supposedly ) submitted for re-review. My administrative forbearance period ended and I was issued a bill for XXXX XXXX I just called today and explained the history and requested that I be placed on administrative forbearance again while they review my digital employer certification ( from XX/XX/XXXX ) and update the count to XXXX. The woman I spoke to said that I was only placed on administrative forbearance because MOHELA messed up billing so everyone was placed into administrative forbearance. While I've seen posts online, taken with a grain of salt, about this happening, I was never told that this happened to my account nor was I told about that when I was issued a bill in XXXX XXXX. She said the only way that I could be placed into administrative forbearance now ( XXXX XXXX ) was to provide tax information to be placed into a forbearance repayment plan and that I don't qualify for administrative forbearance because I haven't hit XXXX payments yet. She also told me that the last representative didn't properly submit my request for review on my XXXX XXXX employer recertification form so they haven't even looked at that yet. I asked to speak with a supervisor and after waiting on hold for 45 additional minutes, I was transferred to an automated line that said a supervisor will call me back by the end of the next business day. So what I took away was that if you believe you hit XXXX and submit an employer recertification ( which you have to do annually, or at every new payment since you're only certified through the date you submit the form ) you have to continue to pay until MOHELA processes the paperwork and updates your account. If you take me as an example, I would have to make 3 to 4 months of extra payments while I wait for MOHLA to work through its incompetence and process my form. So not only do I have to make additional payments but I then get to fight with them for additional months to seek a reimbursement for payments over XXXX payments, and eventually get that money back without any interest or penalty on MOHELA 's side for their lengthy processing times? That's ridiculous. Not directly relevant to this issue, but last year when I recertified my employer history, other forms were marked as duplicates. They all were properly dated and had different employers and lengths of employment- when I called the representative asked whether two similar sounding employers were the same. I stated they were not and referenced the different tax IDs, addresses, and signatures. The form was processed correctly within 3 days. Regarding my options for my XXXX XXXX bill, I see my options as 1. Not paying my XXXX bill and hoping that MOHELA processes the recertification form and updates my count to XXXX before it goes to collections OR 2. Pay the bill and then fight with them for reimbursement after the XXXX count is updated. My XXXX payment wouldn't be qualifying unless I submit another employer recert form which, based on this experience, will take another 4 months to process. Either way I am out additional money and time for a problem that was not created by me. I see in the 34 CFR 685.205 subd. ( b ) ( 9 ), and other nearby provisions, that there seems to be authority for forbearance while there's administrative processing time. I would like to request any help your office may be able to provide. Or, at least help with voicing frustrations with MOHELA 's incompetence that is affecting my finances, my credit, and my emotional well-being. I appreciate your time and attention with this matter.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 95762
Submitted Via: Web
Date Sent: 2024-01-18
Company Response to Consumer: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-18
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I had trouble understanding how my FSA.gov account showed that I had paid over {$15000.00} towards the original amount borrowed which is approximately {$30000.00}, and mohelas website shows that I still owe more than my original amount borrowed. They do not have a record of my loan documents to show how they have calculated the amounts that I owe. When I called and asked for a payment history of my loan I was told they could provide that information but it would have to be approved by a supervisor and take a few days. When the information was uploaded to my account it was just a report of each loan amount, the date it was taken out, how much interest is/was charged and what is still owed. I still have no record from my loan servicer of where the $ XXXX I have paid has gone towards. Additionally I was sent an email on XX/XX/XXXX stating Your account has been placed into an administrative forbearance ( meaning no payment is required ) for payments due between XX/XX/XXXX, through XX/XX/XXXX. You are not required to make a payment until XX/XX/XXXX and your account will not be considered delinquent. Be on the lookout for your next billing statement and on XX/XX/XXXX I received an email stating Information is current as of XX/XX/XXXX Your Student Loan Payment is Due XX/XX/XXXX Current Due : {$440.00} Past Due : {$440.00} Total Due : {$890.00} So I received no paperless notification regarding my bill due which stated on XX/XX/XXXX I was not delinquent and XXXX days later I was a whole payment delinquent? Ive tried to call countless times and request information that no one seems to be able to provide and I have no idea where my {$15000.00} went if I have no payment history record to show other than the brief information on FSA.gov. I havent asked my original loan servicer to sell my loans from one company to the next and now I am the one having to put the puzzle pieces together.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: VA
Zip: 23324
Submitted Via: Web
Date Sent: 2024-01-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-18
Issue: Dealing with your lender or servicer
Subissue: Problem with customer service
Consumer Complaint: Good afternoon. My name is XXXX XXXX. MOHELA services my student loan. I have been in repayment for a bit now, but their communication is basically non-existent. I have messaged them multiple times regarding a couple of different issues and they will not get back to me. I understand they are likely overwhelmed, however my wife and I have had loan servicing ( before moving to MOHELA ) through XXXX and it was such a pleasant experience there before being moved. If this is how they handle customer service, I believe something should be done about it. Thank you.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: AR
Zip: 72401
Submitted Via: Web
Date Sent: 2024-01-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-18
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Between the months of XX/XX/XXXX and XX/XX/XXXX, I have tried to contact Mohela about my student loan repayments and have never been able to get through to an individual after spending hours on the line each time. Mohela has provided false information to me about my account and in their correspondence with me, and has taken direct payments out of my account at erratic times in different amounts to amount stated in the letters they have sent me as correspondence or in the amounts they have listed under my account on their site. And now new letters are saying I have a much higher monthly payment than what I had worked out through the federal student aid save plan.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MD
Zip: 21230
Submitted Via: Web
Date Sent: 2024-01-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-18
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I received confirmation that my application to be put on the SAVE plan was accepted in XXXX XXXX My first payment under the plan was made successfully in XXXX XXXX. In XXXX I receive a letter stating that I was being placed in administrative forbearance and that no payments would be due until XXXX XXXX On XX/XX/XXXX I log into my account to find that I had been removed from the SAVE plan without my consent or knowledge and placed back on the level plan and that I had a pending application for the SAVE plan. In addition it showed that a payment on the level plan was due in XX/XX/XXXX which I had missed because I was not informed of any of these changes. I promptly made the missed payment on that day XX/XX/XXXX in order to alleviate any negative affects it may have my account. I I proceeded to call Mohela on XXXX XXXX XXXX and requested information as to why I was removed from the SAVE plan and had a pending application for same without my consent. The representative could not provide any information as to why this occurred. I was told to wait for the current application to be processed. It is XX/XX/XXXX as of this writing and the application has not been approved and my account still shows a payment being owed at the end of XXXX under the level payment plan. I have since resubmitted the SAVE application yet again in an attempt to return to the plan
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NJ
Zip: 078XX
Submitted Via: Web
Date Sent: 2024-01-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-18
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I'm trying to certify my last 5 payments with MOHELA, for public student loan forgiveness with my employer, XXXX XXXX XXXX XXXX XXXX. I submitted my PSLF form on XX/XX/XXXXXXXX to MOHELA. MOHELA said it can take up to 60 business days to review, I called to check on the status today XX/XX/XXXX, they said can't accept my PSLF form as it stands right now because of digital signatures and they needed " Wet signatures '' the HR Specialist did not sign it correctly apparently? I re-sent the same form with wet signatures from myself, and the US Dept of state 's HR specialist 's wet signature as well, on XX/XX/XXXX. MOHELA said on the phone my XX/XX/XXXXXXXX PSLF form is still processing, and may have to wait another 60 days to process, even though I uploaded the corrected one promptly, and corrected the form on XX/XX/XXXXXXXX It's really frustrating when they can't just use the corrected form since its not completed yet. I asked to speak to a supervisor, and the phone operator said they can't transfer me, I asked again and she put me on hold. The operator came back and said the supervisor refused to take the call. Ever since my loans transferred from my XXXX XXXXXXXX to MOHELA, its been a disaster!! I would have never know my PSLF form had deficiencies if I wouldn't have called on XX/XX/XXXXXXXX MOHELA is not helpful when you call, they still have yet to place me on forbearance when I requested this over a week ago. Thank you, XXXX XXXX XXXX
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MN
Zip: 55379
Submitted Via: Web
Date Sent: 2024-01-18
Company Response to Consumer: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-19
Issue: Dealing with your lender or servicer
Subissue: Don't agree with the fees charged
Consumer Complaint: In the fall of XXXX my loan interest rate had been paid off through XXXX. When it switched to MOHELA I asked for an updated info from XXXX regarding my account as well as the payments processed through PSLF. At this point, I did not receive such items as my account was closed. When MOHELA received my old loans, I started gaining interest again. No one responded to my inquiries. As of this week I paid my monthly student loan on XX/XX/XXXX but on XX/XX/XXXX they said I was overdue which affects my loan forgiveness payment options and also incorrect. I feel that this company is untrustworthy and I am out of options.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: KY
Zip: 410XX
Submitted Via: Web
Date Sent: 2024-01-19
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-19
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I am enrolled in the PSLF program and MOHELA has incorrectly placed me on a Level repayment plan which does not count towards PSLF. I have called numerous times to check on the status of my pending IDR plan. I applied for the XXXX repayment plan in XX/XX/XXXX. MOHELA/Student Aid has been processing my application since XX/XX/XXXX, and it is still " processing '' as of today, XX/XX/XXXX. Since XX/XX/XXXX, MOHELA has placed me on the wrong repayment plan. MOHELA has placed me on the Level plan, but previous to my re-application in XX/XX/XXXX I have always been on an IDR ( income-driven ) repayment plan in order to count my eligible employment toward the PSLF program. I spoke to customer service representatives at MOHELA back in XXXX and XX/XX/XXXX, who verbally verified the correct payment under the XXXX plan that would be applied to my account once payments restart, yet I never received written communication about this. For the last 2 months, MOHELA has disabled the message button on my account, so I am unable to directly send messages in order to have written communication on file. When I asked a MOHELA customer service representative for written verification of my conversations, they said no. Since then, I have reached out to MOHELA again to fix this issue and to place me on the correct IDR plan. They have me due for a payment today, XX/XX/XXXX, on the Level plan which is incorrect and will NOT count toward PSLF payments, as well as the payment amount being incorrect and much higher than what I would pay on my typical IDR plan. I have reached out 3 separate times during the month of XXXX alone to have this issue resolved and still no change to my account. As of XX/XX/XXXX, MOHELA has placed only half of my loans in Administrative Forbearance, with a XXXX plan payment still being reflected on my account. When I last spoke with a representative at MOHELA previous to XX/XX/XXXX, they misinformed me. I was explicitly told that my full account would be placed into forbearance until I was on the right repayment plan, since I have taken all necessary steps on my end to apply to an IDR plan to have my payments reflected for PSLF. As of today, there is no change on my MOHELA account. For the record, I have a 100 % on-time payment history for my loans and now due to MOHELA 's processing errors, misinformation, and lack of proper guidance, I may have a past-due payment reflected on my account and a full month of eligible employment not counting toward my PSLF. How is that fair, when I have taken all the correct steps necessary on my end to make sure I am on an IDR plan for my PSLF payment counts? I need further assistance with this matter as my calls to MOHELA have not remedied my requests and have created significant stress on my end over the last couple of months.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: IN
Zip: 463XX
Submitted Via: Web
Date Sent: 2024-01-19
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-19
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Dear CFPB, Thank you for your assistance! In brief : I am requesting that MOHELA comply with federal government law. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX who has public loans through the department of education that are serviced by MOHELA. As part of my loan repayment, I am required to re-certify my loans on a given date. This is known as an IDR ( Income-Driven-Repayment recertification ) date. The Department of Education ( DOE ) lists my IDR recertification ( AKA IDR anniversary data ) date as XXXX i've attached proof from the DOE 's XXXX website account. The DOE recently made a legal pronouncement, as seen on their website, that because this recertification date falls before XX/XX/XXXX, it should be pushed out by one year. Specifically, my IDR anniversary date is in XX/XX/XXXX. As per the DOE 's pronouncement, this recertification date should be pushed back to XX/XX/XXXX. I am emailing you because MOHELA refuses to comply with this law. I contacted MOHELA via phone on XX/XX/XXXX to bring this to their attention. During a 2 hour phone call where I spoke with multiple agents, they assured me that my date would be pushed back by one year to XXXX. I asked for confirmation in writing, but the agents said they would not provide confirmation. Then, my call was dropped, while I waited on hold to speak with a supervisor. So, I then sent a message to MOHELA on XX/XX/XXXX via their secure message portal formally requesting that my date be pushed out XXXX year. I received no response. I then contacted XXXX XXXX at MOHELA, via email. He is a complaint analyst, who spoke with me on the phone on XX/XX/XXXX. He assured me that my issue would be rectified immediately, and he would contact me within 24 hours to rectify the issue. He also indicated on the phone call that the issue appeared very clear cut, and therefore was confused why it had taken so long to rectify. Despite his assurance I would be contacted within 24 hours, I was not. I emailed him after 48 hours, and have still not heard back. I attached proof of my emails, proof of my secure messages. I have attached proof of my IDR recertification date from the DOE website. In brief : I am requesting that MOHELA comply with the federal government DOE pronouncement to push by my IDR recertification date by one year to XXXX. This all that I am requesting, that they comply with the law. I am humbly requesting your assistance. Thank you so much. Sincerely, XXXX XXXX
Company Response: Company believes it acted appropriately as authorized by contract or law
State: IL
Zip: 60622
Submitted Via: Web
Date Sent: 2024-01-19
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-18
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: Dear Consumer Financial Protection Bureau, I am writing to lodge a formal complaint against my student loan servicer, MOHELA, for their failure to properly manage my Public Service Loan Forgiveness ( PSLF ) payment count. This complaint specifically addresses MOHELA 's erroneous categorization of the payment period of XX/XX/XXXX, which was under administrative forbearance, as ineligible for PSLF credit, a clear violation of the regulations outlined in 34 CFR 685.205. Despite the clear guidance on the treatment of administrative forbearance periods in the context of PSLF, and the obligations of servicers as underlined in the Consumer Financial Protection Bureau 's report, MOHELA has failed to adhere to these standards, leading to a significant misrepresentation of my eligibility and progress towards loan forgiveness ( Consumer Financial Protection Bureau, XXXX ). Prior to contacting your office, I initiated communication with MOHELA through a formal letter sent on XX/XX/XXXX, demanding an immediate review and rectification of my PSLF payment count. The gravity of MOHELA 's error and its potential to inflict long-term financial damage necessitates the intervention of the Consumer Financial Protection Bureau XXXX Enclosed, please find copies of all pertinent documents, including my initial letter to MOHELA, any responses they have provided, and detailed records of my payment history and the administrative forbearance for XX/XX/XXXX. I am confident in the Consumer Financial Protection Bureau 's commitment to ensuring fair treatment of borrowers and anticipate your prompt action in addressing this complaint. Thank you for your attention to this urgent matter.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MD
Zip: 21227
Submitted Via: Web
Date Sent: 2024-01-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A