Date Received: 2024-01-10
Issue: Struggling to repay your loan
Subissue: Problem with your payment plan
Consumer Complaint: I have paid above the required amount for my student loan in total of {$1500.00} just over the last four months and my loan balance is {$1000.00} higher than the original amount I borrowed! At this rate, I will never satisfy the loan.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 93004
Submitted Via: Web
Date Sent: 2024-01-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-10
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I was making payments to another loan servicer ( XXXX ) when my loan was transferred to Mohela. There were 5 outstanding payments in the amount of {$60.00} each that were paid to XXXX when my account was being transferred. In XX/XX/2023, after being notified that my account was transferred to Mohela, I called Mohela immediately and inquired about the {$60.00} payments. At that point, they only had 1-2 of the payment. I made sure to explain that these payments should be applied to Loan 3. I called every month after checking on the payments to ensure that they were applied correctly. Despite my calls, Mohela misapplied 3 payments. In XX/XX/2023, I was advised that Loan 1 & 2 would be discharged due to my time working in the US military and in the public service. I realized that 2 payments were still missing, and I wanted to ensure that the payments would be applied correctly to Loan 3. I called Mohela and XXXX several times inquiring about the payments and making sure that the payments would be applied to Loan 3. Although XXXX transferred the amounts in XXXX, the payments did not post to my account until XX/XX/November2023. Additionally, the payments posted to the wrong loans : Loans 1 & 2. The payments were supposed to post to Loan 3. Mohela was able to locate 1 misapplied payment and correct the misapplication before Loan 1 & Loan 2 were discharged. In fact, I am receiving a refund for this misapplication in the amount of {$32.00} and {$22.00}. However, Mohela failed to correct a {$60.00} misapplied amount until after the discharge ( Note : I am not sure about this because I have received different guidance from different Mohela reps about this. Per the rep today, the smaller refunded amounts do not reflect the misapplied payments. When I ask what they represent, she said the overpayment on the principal, but was not able to tell me how this overpayment occurred. ) Here is the issue : The {$60.00} was removed from Loan 2, which was discharged. They are refunding me the {$60.00} since I full paid Loan 3, and that payment should have applied to Loan 3. ( Note : This is similar to the refund of the {$32.00} and {$22.00}. ) Because the {$60.00} amount was misapplied, Mohela did not submit that amount in the Loan 2 discharge. They are in turn billing me for this same amount. I have explained that if they had properly applied all payments correctly, then the full amount for Loan 2 would have been submitted with the discharge and written off in Loan 2. Currently my account is about to be in Collection status. I would like to have this resolved before this takes a negative action and affects my employment and credit.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: GA
Zip: 310XX
Submitted Via: Web
Date Sent: 2024-01-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-10
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: Upon careful review of my payment history, I have identified several time periods with missing payment counts, which has raised concerns about the accuracy of my loan records. I have reached out to various parties involved, including my college and my previous loan servicer, XXXX XXXX XXXX ( XXXX ), but have received conflicting information regarding the origin of this discrepancy. As the loan is now consolidated, I have been informed that there is currently no feasible way to rectify these missing payments and address any forbearance issues that may have occurred during these periods. I believe this issue is crucial to resolve, as it impacts my overall loan status and may have implications for my financial well-being. Enclosed with this letter, you will find a copy of my payment record, with the missing time periods clearly circled. Additionally, I am providing an example of proof of loan billing and payment for your reference. I am more than willing to supply any additional documentation required to support my case, including proof of a medical hardship. This documentation includes hospital and police records, as well as Family and Medical Leave Act ( FMLA ) paperwork. The missing time periods are as followed : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX I kindly request that MOHELA add the missing payment counts during the specified periods. I believe that a fair and accurate representation of my loan history is essential for my financial planning and peace of mind. I appreciate your attention to this matter and look forward to a prompt resolution. If necessary, I am available for any discussions or meetings to provide further clarification and documentation. Thank you for your understanding and assistance in addressing this important concern.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: GA
Zip: 30030
Submitted Via: Web
Date Sent: 2024-01-11
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-10
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Mohela was supposed to refund {$12000.00} that I have been waiting for over 5 months to receive. They added it back to my balance and it's accruing interest. I have waited hours on hold only to be disconnected. I am also qualified for PSLF and they are not updating my payment count even though I submitted the employee verification for months ago.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CO
Zip: 80219
Submitted Via: Web
Date Sent: 2024-01-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-10
Issue: Incorrect information on your report
Subissue: Account information incorrect
Consumer Complaint: Balance on Mohela and fedloan.gov both shows XXXX. My credit report still has the full amounts.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: WA
Zip: 99163
Submitted Via: Web
Date Sent: 2024-01-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-10
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: My name is XXXX XXXX. I am a XXXX XXXX in New mexico. I have severalstudent loans, XXXX XXXXXXXX Unsubsidized and others XXXX student PLUS all managed by MOHELA after they were transferred there from XXXX XXXX student loans. I am currently in repayment through the XXXX XXXX plan. Over the last few months I have had to contact MOHELA multiple times for a variety of options. They took over XXXX months to process my verificationof employment and get me on the XXXX after applying throughstudentaid.gov. Currently I am enrolled in auto debit, and they have said my auto debit is based on my " old loans '', unclear what this means. I am not able to modify my auto debit amount or cancel my auto debit setting on their website. Calling them results in at least a XXXX minute wait time, and I am often directed to change these settings throughtheir website. Every time I have attempted to do that, or modify the auto debit in any way I get an error message " Your auto debit payment has already been sent for processing. You may come back to request an additional amount change after your current due date has passed. '' Despite wheneverI try to do this. I am also enrolled in the PLSF, and getting my employmentverification through MOHELA has been a difficult task, requiring multiple phone calls and hours of my life. Currently I am trying to pay my loans, last month the lower auto debit loans were not the full payment, and I made the difference 4 days later, and promptly got a message and email that my payment was late. They are quick to demand their money, and slow to offer any assistance. I am reaching out to request any assistance with this. MOHELA is currently in an active class action lawsuit. The amount of loans they service after becomingthe official federal student loan processing company is obviouslytoo much for their capabilities. They clearly care more about their profit than helping student loan borrowers. I appreciate your time and assistance, and patiently await your response.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NM
Zip: 87112
Submitted Via: Web
Date Sent: 2024-01-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-10
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I have contacted Mohela many times for the same issue back since XX/XX/XXXX. I called and spoke to XXXX different reps again today and I was hung up by XXXX of them. My IDR date has not been corrected as I was told that it would get corrected months ago. XX/XX/XXXX again and I was told that they have XXXX different IDR dates XXXX for XX/XX/XXXX and XX/XX/XXXX and the rep was not even sure why there were XXXX different dates listed. Both these dates are incorrect. I asked to speak to a Mohela supervisor since I keep getting the run around but I was told that I could not speak to a supervisor. I have a date of XX/XX/XXXX listed on Mohela website to recertify but is is incorrect because based on XXXX XXXX, my recertification would be pushed out by XXXX year because I fall under the date listed to not be required to recertify " earlierst you could be required to recertify is XX/XX/XXXX. I need for Mohela to follow XXXX guidelines and " push out my XXXX recertification date by XXXX year to XXXX as soon as possible. The date to recertify is approaching but agian it is incorrect, and I am not required to recertify until the year XXXX. The letter I have attached shows the guidelines to follow from XXXX webstite that recertifcation are not required and recertification would " be pushed out by XXXX year '' Mohela needs to be found accountable for reporting incorrect information and not correcting information as they have promised many times over the phone. This has caused me mental health issues. I ask that cfpb assit me and resolve this by contacting Mohela to immediately update my IDR recertification year to XXXX
Company Response: Company believes it acted appropriately as authorized by contract or law
State: AZ
Zip: 85249
Submitted Via: Web
Date Sent: 2024-01-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-10
Issue: Struggling to repay your loan
Subissue: Problem with your payment plan
Consumer Complaint: On XX/XX/2023, I submitted all required documents, including my XXXX application, to MOHELA. However, my documents were rejected on XX/XX/2023 without a clear explanation. In response to the rejection, I promptly submitted updated documentation to address any concerns raised by MOHELA. Despite my efforts, I have not received any communication or acknowledgment from MOHELA regarding the status of this updated submission. The lack of communication and transparency from MOHELA has left me in a precarious situation, as I am committed to complying with the XXXX program requirements in good faith. MOHELA 's lack of care when it comes to this situation ( long phone waits ) and seek clarification have proven fruitless, exacerbating the stress and uncertainty surrounding my financial obligations.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 90638
Submitted Via: Web
Date Sent: 2024-01-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-10
Issue: Problem with a company's investigation into an existing problem
Subissue: Their investigation did not fix an error on your report
Consumer Complaint: My student loans used to be handled by a lending company called XXXX but after I started working for XXXX XXXXXXXX and qualified for student loan forgiveness they transferred my loan to a company called Mohela. I have two issues now because XXXX is continuing to report my student debt as well as Mohela so it appears I have twice as much student loan debt on my report than I actually do.. also Mohela has been violated by the Biden administration and my account is in mandatory forbearance pending my income driven repayment agreement which should be set at XXXX continuing once the issue is resolved but mohelo is reporting that my payments are deferred and they keep adding interest to the balance in my credit report but there is supposed to be no interest during the forbearance. I would like XXXX to quit reporting and have it removed from my report and I would like a Mohela to report accurately and update everything but I have had no luck and it has caused me to be denied for a mortgage.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: ID
Zip: 836XX
Submitted Via: Web
Date Sent: 2024-01-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-10
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: Mohela was given servicer responsibilities for my student loans in XX/XX/2022 A portion of those loans had been forgiven through PLSF through the prior servicer FEDLOANSERVICING. Since that time MOHELA has sent mail and answered the phone after expected long waits, but they have done nothing to help me discharge the loans and have done everything to attempt to " recoup '' their " cost '' through charging interest on previously discharged loans and failing to consolidate current loans that would fit into income driven repayment schedules. MOHELA has stated clearly that they do not do consolidation, but as servicer they have responsibilities to complete actions approved by the DEPT of ED which are being unduly delayed. Since MOHELA being named servicer, my loans have gone delinquent even though " over- payments '' have been sent. MOHELA has attempted to confuse the issue by sending bills for the same payment to my wife in an attempt to " confound '' and prolong debt service. I am in no way denying my debt. I am attempting to manage that debt with tools provided by the federal government and the servicer is attempting to profit. I simply want my loans consolidated so they can be placed in an income dependent repayment status.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: SC
Zip: 29485
Submitted Via: Web
Date Sent: 2024-01-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A