Date Received: 2019-02-26
Issue: Struggling to repay your loan
Subissue: Can't temporarily delay making payments
Consumer Complaint: Mohela offers a .25 % interest rate reduction if you schedule auto deductions. The problem is that they withdraw the monthly even if it is not due. By way of example, if your monthly payment is {$590.00} and due on XX/XX/XXXX, but if you make the payment in full on XX/XX/XXXX, Mohela will still automatically withdraw {$590.00} on XX/XX/XXXX despite the fact it is not currently due. This double dipping is unfair to student loan borrowers.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MA
Zip: 024XX
Submitted Via: Web
Date Sent: 2019-02-26
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2019-02-23
Issue: Attempts to collect debt not owed
Subissue: Debt was result of identity theft
Consumer Complaint: XXXX XXXX, XXXX XXXX and XXXX XXXX from MOHELA continue to send " bills '' even after an Identity Theft Report was filed against them. They continue alleging that I owe a debt. They continue with their Illegal Debt Collection Practices Under 15 USC 1692 ( E ) ( 1 ). I am the creditor as per 15 USC 1692 ( A ) ( 4 ). They have no license to do business in Maryland. They keep harassing me by phone and mail. Who are they to override the above U.S. codes under the Fair Debt Collection Practices Act ( FDCPA )?
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MD
Zip: 20876
Submitted Via: Web
Date Sent: 2019-02-23
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2019-02-18
Issue: Communication tactics
Subissue: You told them to stop contacting you, but they keep trying
Consumer Complaint: I recently filed an identity theft report on MOHELA for stealing my SS # and other information to create an account. I requested multiple times in writing and by phone to STOP calling me. I consider their phone calls harassment. They call every Monday.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MD
Zip: 20876
Submitted Via: Web
Date Sent: 2019-02-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2019-02-05
Issue: False statements or representation
Subissue: Impersonated attorney, law enforcement, or government official
Consumer Complaint: MOHELA 's director XXXX XXXX and Assistant General Counsel XXXX XXXX ( most probably an Unregistered Foreign Agent ) have repeatedly contacting me demanding payment for an alleged loan they say I owe. I have already sent them USPS Certified letters stating that I am the creditor as per 15 USC 1692 ( A ) ( 4 ) and that I do not have a signed contract with MOHELA. I have never given them my personal information, much less my social security number. Furthermore, MOHELA does not have a business license and Debt Collector Bond required to do business in Maryland. They are engaging in fraud, exhortation, harassment, mail fraud and I demand them to STOP. I filed an Identity Theft Report. I am going to file mail fraud for using the U.S. mail for their illegal debt collection practices under 15 USC 1692 ( E ) ( 1 ).
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MD
Zip: 20876
Submitted Via: Web
Date Sent: 2019-02-05
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2019-01-22
Issue: Struggling to repay your loan
Subissue: Can't temporarily delay making payments
Consumer Complaint: I started at University of XXXX in XX/XX/XXXX for a XXXX in XXXX XXXX and successfully put my loan into deferment for three months ( the maximum amount allowed ). Around the time that the three months were up, I submitted another deferment request, because I was still in school. On XX/XX/XXXX the deferment request was denied because it was not within 30 days of the end date of the original deferment. I received the notification on XX/XX/XXXX. I then submitted another request 1 day before the 30 days started because I figured processing with my school would take at least a day. It was denied on XX/XX/XXXX because there were missing dates of enrollment, however, the national student clearinghouse sent the correct forms with the application. I received this notification XX/XX/XXXX. I submitted another deferment request again after the 30 days began and it was denied on XX/XX/XXXX because it was not within the 30 days of the end date of the other deferment. I had submitted it after the 30 days but since it was signed and dated for the day before the 30 days, they denied the request. I received this notice on XX/XX/XXXX. I then submitted the deferment request for the FOURTH TIME. It was denied on XX/XX/XXXX again due to it not providing a program of study. I received this notification on XX/XX/XXXX. By this point it was so close to XXXX so I was unable to get anything done with my school since everyone was gone on break so I had to wait until after office personnel came back at University of XXXX. By this time it was XX/XX/XXXX. At this point, I was in direct contact with one person from the registrars office and she sent the deferment request 4-5 times to XXXX/Mohela by fax and by e-mail. The only record that XXXX/Mohela has of this is XX/XX/XXXX which they took no action and XX/XX/XXXX which they also took no action. I finally got frustrated and asked the registrar lady to just send me the forms directly so I could up load them onto my account homepage. This was against their protocol but she agreed because, I assume, she understood how much trouble this had been for me. I submitted the deferment request again for the FIFTH TIME on XX/XX/XXXX through the XXXX/Mohela website and I made sure to contact XXXX/Mohela when I submitted it to make sure everything was filled out correctly. They assured me that it would and that I would not be penalized for this since my account has been past due since I have been waiting for this deferment to go through. On XX/XX/XXXX they contacted me because my account was past due and that was when they informed me that the dates were not filled out correctly AGAIN. I was forced to pay a month of my loan which I really cant afford right now and now I have to submit this deferment request again. Also, apparently I was given the incorrect information by the previous two XXXX/Mohela personnel who told me that if my deferment request was approved it would retroactively be applied through the month of XXXX. That was not true, thus the reason I had to pay for a month of student loans that I truly can not afford. I am submitting this complaint because XXXX/Mohela have failed to acknowledge my in-school deferment requests. They have created such a burden on me and my school by denying my requests over and over again knowing full well that I am currently in school. I have been prompt with every one of my filings and deferment requests but because of their incompetence, my account is now 37 days past due. I have done everything in my power to get them to accept my deferment requests, but they have utterly failed to perform even the most basic of tasks.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MI
Zip: 480XX
Submitted Via: Web
Date Sent: 2019-01-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2019-01-02
Issue: Struggling to repay your loan
Subissue: Can't get other flexible options for repaying your loan
Consumer Complaint: I am currently serving in the XXXX XXXX XXXX, and was prior XXXX and XXXX XXXX XXXX totaling 15 year of service since XXXX. I enrolled in XXXX university for a XXXX XXXX in XXXX XXXX for three years XX/XX/XXXX-XX/XX/XXXX. During My attendance I was summoned to XX/XX/XXXX XXXX XXXX on temporary status which delayed my four year degre completion. I applied for student loan thru MOHELA after depleting my XX/XX/XXXX g.i. Bill, and I had one more class to finish. The school did not notify any of their students that they were shutting down as a result of accreditation loss and low student attendance. In fact, I found out thru the news in in the morning during my daily routine on XX/XX/XXXX. I informed the student loan lender. They wont be flexible to accepting very low payments despite my income hardship, and in the mean time Im waiting for student relief assistance program to help me discharge this loan which is a long term wait. The anomaly of this event that I never thought would happened to me as im Learning as I go in this process is that the student lender practices is unethical. The student remains unaware of the lenders security process to assure that the school is not going bankrupt, or if they are abiding by law and education standards state and nationwide. Thus endangering the students/customers economic well being as well as their credit. Hence, the customer has right to be informed of such potential risk if the school chooses not to inform the student.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 92139
Submitted Via: Web
Date Sent: 2019-01-02
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-12-20
Issue: Incorrect information on your report
Subissue: Account status incorrect
Consumer Complaint: A credit repair firm sent multiple dispute letters addressing a MOHELA account on my XXXX report. This account is listed with a {$0.00} balance but is still being reported as an active late payment account.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MO
Zip: 657XX
Submitted Via: Web
Date Sent: 2018-12-20
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-12-10
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I refinanced my Federal Loans with Mohela XXXX XXXX to obtain a better interest rate than what I was receiving with my Federal Loans. I came across 2 issues that I found to be quite problematic. The initial issue I had was that while I was making my minimum autopay installments, I was also making additional payments on a monthly basis. I had been doing so for several months/years, when I had contacted the company in regards to some accounting issues I was seeing. At that time, they then told me that all of those additional payments could have been going to the principal rather than the interest. I had been making substantial monthly payments ( XXXX XXXX ) that ultimately was not benefiting me as the consumer in any way whatsoever. They never contacted me to let me know this was even an option. I went back through their contract and I could not find any location that explicitly told consumers if you made extra payments, they could go to the principle. They intentionally kept this from me and other consumers. As a XXXX XXXX, my loans are substantial ( XXXX ) which having made those initial payments to the principal would have helped me and my family immensely. In addition, as I had now been alerted to the fact I could make payments to my principal rather than just the interest, I was seeing some benefit in that my overall principle was decreasing. As my loan was leaving forebearance and I was going to have to make full monthly payments, I again looked at my balance, and to my utter dismay, my principle balance had returned almost to its initial level ( XXXX ) even though I had been making large additional payments. I called Mohela XXXX XXXX to discuss this with me, where they told me at the end of forebearnace, there was an additional XXXX fee that was incurred when the loan left forebearance. Needless to say I was enraged. I begged for some reprieve, only to be told this was in the contract and you are unfortunately " out of luck. '' I have since left that company and refinanced with XXXX at this point, because I was so appalled at these tactics. I have already spent thousands of dollars attempting to be a responsible consumer and pay for my education. All of this money could have gone to my overall principle which would allow for me to have paid my loan back in full, in a shorter amount of time, and done responsibly. I am now continuing to pay an absurd amount on a monthly basis, to make up for what I thought I was mitigating over the past 2-3 years. This is unbelievably deceitful and provides absolutely no benefit to the consumer whatsoever. They are keeping you indebted to continue to reap interest benefits for themselves while leaving you struggling on a monthly basis.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: OH
Zip: 447XX
Submitted Via: Web
Date Sent: 2018-12-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-12-05
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I have a large amount of student loan debt, $ XXXX+. I have always been on an income driven repayment plan ( IDR ), specifically the income based repayment plan ( IBR ). I recently inquired of my loan servicer Mohela about lowering my interest rate or what other options I had available to me, and this was on or about XX/XX/2018. The representative told me about REPAYE, a revised pay as you earn plan that provides interest incentives. The deal was the following, changing plans would require any outstanding interest I had to capitalize, and the interest that my monthly payment did not cover ( because these plans assist people whose monthly payments do not cover the full interest that accrues per month ) would be paid by the government at 100 % for the first 3 consecutive years for my subsidized loans, and at 50 % for my unsubsidized loans. While I wasn't thrilled about capitalizing the outstanding interest, which was rather substantial at $ XXXX, the interest incentives were great, especially the deal on the subsidized loans. I applied for REPAYE a few days later. I was approved around XX/XX/2018. I made another call to Mohela shortly after that to inquire how much of the interest will be paid by the government. The representative provided me a detailed explanation, including the 100 % covered subsidized loan interest. Following my first payment made on REPAYE ( XX/XX/2018 ), I called Mohela on XX/XX/2018 to check when I would see the government payment/credit for the interest paid. I was unable to get any answers, so I sent a secured message on my Mohela account to ask the same question. It was only then that I was told that the 3 year 100 % government paid interest incentive on subsidized loans is a ONE TIME deal covered under any IDR plan. And because I was on IBR for more than 3 years, I already used up that 3 year incentive. What?? No one explained this. More importantly, the REPAYE application specifically says the 3 year incentive of 100 % government paid interest applies to the first 3 consecutive years on the plan. NO where on the application does it say that this incentive is a one time deal. I have been misled and as a result, I am now accruing interest at a higher amount due to my principal balance increasing ( as a result of capitalizing the unpaid interest ). Mohela refuses to do anything. On XX/XX/2018, I called Mohela regarding their mistake.I was told the Department of Education is the only place to help me. I have submitted a complaint to the Office of Inspector General. Mohela acknowledges their representative gave me incorrect information on XX/XX/2018. Mohela misunderstood my concern and stated that I was told and acknowledged that my unpaid interest would capitalize. I never misunderstood this. I always understood that the interest would capitalize once I changed payment plans. I was told a lie when their representative said I would get the 3 year interest incentive. Mohela 's solution? To give their employees better training. This is unacceptable. I changed payment plans to help with overwhelming interest amounts. Now I'm paying more in interest because of their mistake.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CO
Zip: 80033
Submitted Via: Web
Date Sent: 2018-12-05
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-12-02
Issue: Incorrect information on your report
Subissue: Account information incorrect
Consumer Complaint: My Credit Shows that I have 6 missed payments on all 4 Student Loans. I was in deferment the whole time. Mohela Has had me on it since they bout out the original debt. Please help update that amount.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: AZ
Zip: 85282
Submitted Via: Web
Date Sent: 2018-12-02
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A