Date Received: 2017-12-19
Issue: Struggling to repay your loan
Subissue: Can't get other flexible options for repaying your loan
Consumer Complaint: Good evening, Please see below responses to the Student aid foundation, they are not being cooperative. I do also have the bankruptcy I can attached, should you request it. XXXX I understand that you believe the student loan was not forgiven because you are unable to find evidence of an Adversary Proceeding. I want to make it clear, the courts have allowed a student loan/education loan to be discharged without an Adversary Proceeding and the bankruptcy court does have the power to approve a discharge without an Adversary Proceeding. Though the bankruptcy court does choose to use the process of an Adversary Proceeding to determine discharge on MOST of its cases, it doesn't ALWAYS use this process. It is up to the courts to determine discharge, how the determination is done still rest in the courts "Bankruptcy Judge" hands. With my particular case, the bankruptcy judge did approve the discharge of all listed debts under my chapter 7 bankruptcy . The trustee specifically listed my debt total INCLUDING the student loans as approved to be discharged in bankruptcy and His Honor approved. I have offered up the information, both with the schedule of debt listed, the trustees comments, and the Judges order stating relief ordered. I have also offered a court case showing, that in rare cases and advisory proceeding is not required, should the bankruptcy court make that determination, specifically siting that the lack of undue hardship (advisary proceeding) doe's NOT limit the bankruptcy court's jurisdiction over student loan debts. XXXX XXXX XXXX XXXX, Inc. v. XXXX under the opinion of the court it was stated "We are not persuaded that a failure to find undue hardship in accordance with 523 (a)(8) is on par with the jurisdictional and notice failings that define void judgments that qualify for relief under Rule 60 (b)(4). As noted, 523 (a)(8) does not limit the bankruptcy court's jurisdiction over student loan debts. " The student loan, for which you on behalf of Department of Education are refusing to adhere to court orders, was consolidated from a XXXX XXXX XXXX, from a school which was not accredited at the time of loan origination. Further more, you have been unable to provide me with original form of indebtedness from loan origination in XX/XX/XXXX - XX/XX/XXXX. This loan was clearly discharged in bankruptcy, and your refusal to listen to court orders can and will find you in contempt. The fines for contempt of court do vary, however, my letters explaining to you exactly what and why my loans were approved to be discharged by the court will do nicely to help His Honor see I have exhausted all avenues before requesting further help from the courts. At this point, I will await one more further response from your department. My next step will be to reopen my bankruptcy case and file a motion requesting to find Federal Student Aid an Office of the Department of Education, and Mohela in contempt of court, for which the court will decide the level of severity and distress you, acting on behalf of Department of Education, and Mohela have caused since XX/XX/XXXX. I will also provide the credit report showing that my credit was affected by your refusal to respect His Honors original order for relief. Further more your misuse of power & authority for a loan that was consolidated from XXXX College a college that lost its accreditation from XX/XX/XXXX - XX/XX/XXXX has proven that Department of Education needs more checks and balances outside of themselves to provide an unbiased opinion and to follow courts orders. This particular loan started at $XXXX now with interest and refusal to follow the courts orders the Department of Educations has listed this loan over $11,000.00, damaging my ability for a fresh start, for witch the bankruptcy court have already approved. I have hoped to resolve this without requesting the courts help, and I will wait 2 more weeks before filing the motion, with a series of documentation requesting the courts help with overseeing their order. The date I will file will be XX/XX/XXXX allowing you enough time to follow the courts decision on your own accord. Sincerely, XX/XX/XXXX From: Student Aid Feedback To: "XX/XX/XXXX" Sent: Tuesday, XX/XX/XXXX XXXX XXXX Subject: Resolved, Complaint Case Number: XXXX [ ref:XXXX ] XX/XX/XXXX Dear XXXX XXXX: Thank you for contacting the U.S. Department of Education's office of Federal Student Aid. We have reviewed your complaint XXXX regarding Federal Aid Repayment-Loan Discharge, Cancellation, or Forgiveness. The following actions were taken on your behalf: We researched your account again based on the documentation that you submitted for review on XX/XX/XXXX. Proper documentation would show that you filed an Adversary Proceeding in the Bankruptcy Court and that the Court, as part of the Adversary Proceeding, entered an order discharging the student loans. We looked in PACER and you never filed an Adversary Proceeding. This is why your federal student loans were never discharged. Thank you for providing feedback to the U.S. Department of Education's office of Federal Student Aid. However after taking these actions, we have closed your case. Sincerely, ref:XXXX CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, is for the sole use of the intended recipient and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 936XX
Submitted Via: Web
Date Sent: 2017-12-19
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2017-12-14
Issue: Incorrect information on your report
Subissue: Old information reappears or never goes away
Consumer Complaint: I have disputed Mohela on my report several times. The account are old, closed, and have been transferred to another lender. They are reporting the old late payments on the account as well as reporting current and {$0.00} owed. I have requested and disputed the be removed as the new servicer shows the exact same information and the refuse to remove it. It is causing undue hardship as I am trying to build my credit and eventually purchase my first home. I feel it is unfair for XXXX companies to be reporting the same account XXXX as closed the other as an open account.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: AR
Zip: 721XX
Submitted Via: Web
Date Sent: 2017-12-14
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2017-12-08
Issue: Dealing with your lender or servicer
Subissue: Problem with customer service
Consumer Complaint: This is report, yet again, another a problem with MOEHLA student loan servicing. This time, the web site 's secure message center seems to be XXXX XXXX or worse, the company has completely removed the ability to e-mail the company with a question. Tonight, I tried to send a message to the company in order get more information about its claim to offer a " CASHLoan 3 % Interest Rate. '' According to the website, " Interest rates may be reduced to 3 % during XXXX XXXX XXXX ... .Eligibility is based on XXXX XXXX status reflecting on the SCRA Website. '' Yet that is it. There is no further information. When I attempted to go to the MOHELA secure message center in order to submit a question, the process totally and repeatedly failed. It appears to no longer be possible to send a message. Rather, unsuspecting customers are first lured into a secure message center that looks real. But upon choosing a subject from a drop down menu ( of which are severely restricted ), the site only allows you to choose from a preset subject. Upon clicking the preset subject, the site simply displays a small narrative -- much like a FAQ section. In my case, I selected " other. '' MOHELA displayed " Sorry, messaging is not available for this topic. " In sum, tonight MOHELA is blocking customers from submitting questions to the company via e-mail. My hope is this is just a temporary IT error. However, knowing the company for as long and as well as I do, this is likely the beginning of yet another way to reduce service to customers by a company with little or no oversight of there employees that promotes an anything goes/no controls environment. Thank XXXX for the CFPB to investigate and pursue an enforcement action.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: VA
Zip: XXXXX
Submitted Via: Web
Date Sent: 2017-12-08
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2017-12-04
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Good afternoon, My name is XXXX XXXX, I opened a case with Ombudsman about two years ago ( in XX/XX/XXXX ) in regards to inquiries on my XXXX XXXX and XXXX/Department of Education Loans. During this time, I was provided some incomplete payment details that included an account number that was literally blacked out with a permanent marker, inquiries about payments that were not applied to my accounts ( with my bank statement printed out for proof ), the fact that my Stafford Loan Disbursed balance was showing as a XXXX balance but I was continued to get charged the same amount or more than what I was initially paying on a monthly basis. The last email that was sent which was never returned, was on XX/XX/XXXX @ XXXX XXXX. I 've seen correspondence in regards to XXXX 's negligence for over charging the consumers and I wanted to make sure that my case was documented as an example. For the XXXX/Department of Education payments, my initial balance after my graduation in XX/XX/XXXX was around {$420000.00}, in which I was set up on a payment plan of around $ XXXX monthly being drafted out of my account and Ive never had a late payment since this draft was created. As of today, my loan balance is over {$53000.00} and every time I ask for an itemized statement of events historically ( i.e. how much was paid towards principal, interest, capitalized interest, etc. ) that explains how my disbursements occurred, Im never provided this information in its entirety. I have bank statements to support my claim, but I can never get the holistic balance history for my records. I 've tried contacting the Department of Education locally in the XXXX area for insight, I 've reached out to my Senator via snail mail, and I 've contacted my Lendors multiple times all to no avail. I have all of the documentation that was requested from Ombudsman printed out and saved as a PDF document for reference. Also, I have bank statements that shows remittance for each my student loans.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MS
Zip: 39046
Submitted Via: Web
Date Sent: 2017-12-13
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2017-11-30
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: Mohela applied payments I made to the principal of my loans to " future payments. '' Basically, they took money I specifically directed that they make towards the principal of my higher interest loans, and then applied that money to my scheduled payments. It was not applied to the principal on any loans. It reduced my payments for a limited amount of time. For example, if my regular loan payment was {$600.00}, they took the {$2000.00} lump sum extra I paid and spread that over a couple years of payments, so I was paying {$500.00} a month for 20 months. They spread it over enough time that when I was just looking at my monthly payments, it looked like I had paid down the principle, so the monthly payment had come down. Before making the lump sum payments, I specifically called their customer service representatives and made sure I was following the proper procedures. I indicated the particular loan I was paying towards in the memo field of the check. Further, I can pay them monthly through their auto debit system, but to make payments on the principal, I have to mail a check. I have to rely on them looking at the memo section and applying my payment correctly. When I discovered this error and got on the customer service line to correct it, they said there was nothing they could do. I even talked to a manager.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: WA
Zip: 99203
Submitted Via: Web
Date Sent: 2017-11-30
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2017-11-20
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: On XX/XX/XXXX, we submitted an ACH payment to MOHELA for the remaining accrued interest balance on my loans, which they service. It was processed by our bank on that date. However, due to the payment address on MOHELA 's site not being clear, they cashed the payment but sent it to the wrong address. This delay allowed additional interest to accrue on the account after the date upon which the total interest balance was to have been paid off. Both my wife and I spent extensive time on the phone with MOHELA, and were assured that the problem would be rectified. Upon our last phone conversation, a manager told us that it had been fixed, and that the payment would be applied to the interest balance, as we 'd specified. Today, XX/XX/XXXX, I received a call from MOHELA for an unrelated issue ( they ca n't get our mailing address correct ). Out of curiosity, I asked the representative to confirm that the interest payment had been applied to my account as it was supposed to have been. It turns out it had n't. They applied part of the payment to the interest balance, and part to principle, allowing additional interest to accrue on the unpaid interest balance. This is clearly intentional profiteering. Both my wife and I had repeatedly told and been assured by MOHELA representatives that our payment would be properly applied, which would have paid off any accrued interest balance. By improperly applying our payment ( and lying to us about it ), MOHELA is attempting to profit by charging us interest on a balance that was to have been paid in full nearly a month ago. Yes, I could have caught this earlier by checking their website, but frankly, that should n't be my problem. They made an accounting error, and we spent a great deal of time getting it worked out with them. My wife and I should n't be expected to babysit the company further, checking their website constantly to insure that they simply do what they were supposed to have done with our money. Supposedly this is to be resolved " sometime this week '' according to the representative I spoke to today. I was not given any kind of date, and was told that I have to just keep checking the website to see if the problem has been fixed. At this point, I have no faith whatsoever it will be corrected. Unconscionable, and sadly, seemingly unpunishable.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 91106
Submitted Via: Web
Date Sent: 2017-11-20
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2017-10-30
Issue: Dealing with your lender or servicer
Subissue: Don't agree with the fees charged
Consumer Complaint: In XXXX, my federal Student loan amount was XXXX Capitalization occurred with brought my balance to {$49000.00} an increase of {$5900.00}. My other loan had a balance of $ XXXX after Capitalization, the amount went to $ XXXX increasing by {$2300.00}. Both of my loans in XXXX had a combined amount of {$54000.00}. I was on a payment program at this time with my previous loan servicer. In XXXX my student loans were transferred without my permission or knowledge to Mohela and Mohela immediately added almost {$10000.00} to my balance. From XXXX XXXX, Mohela put me in 5 forbearance which I did not request or sign for, in fact, the last forbearance in XXXX I specifically told them that I did not want a forbearance to switch to a different payment plan, and I was told that if made an extra payment that I would not have to have a forbearance. I made the extra payment, but they put a forbearance on my account anyway and added {$28000.00} to my balance. I have been in a payment plan and making payments since I was forcibly switched to Mohelia. I called them to discuss it and they told me I shouldnt worry about it because in 20 years, it would be forgiven. The reason I switched payment plans in XXXX was because they told me I would have a lower payment and I would have loan forgiveness in 20 years instead of 25 years. They now tell me I dont qualify for that 20 year program. I think they just enticed me to switch so they could add over {$28000.00} to my balance. They did not tell me that they would be doing this or that switching payment plans would result in me owning almost {$30000.00} more. According to Mohela, I now owe them XXXX XXXX XXXX which I dont feel Ill ever be able to pay off. They have effectively ruined my credit with all of their forced forbearances and added capitalization. Nobody will lend me money now I cant buy a car or a home, even though my credit was nearly perfect before this. I thought the whole idea behind payment plans was to help people with their student loans who couldnt afford regular payments. My college education ( I graduated in XXXX ) which originally started at less than {$50000.00} has now almost doubled because of this. I need help!
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CO
Zip: 80923
Submitted Via: Web
Date Sent: 2017-10-30
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2017-10-27
Issue: Struggling to repay your loan
Subissue: Problem lowering your monthly payments
Consumer Complaint: Hi I am BOMBARDED by calls from XXXX XXXX XXXX XXXX - I finally called back and only said I had a loan and my first name. They immediately confirmed they were working with the XXXX XXXX XXXX and they could help. I asked for their online website where I could verify them. The guy said have a good day and HUNG up on me. So this IS phishing as I suspected and theyre relentlessly dialing. I have numerous phone numbers I can associate to this scam.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: WA
Zip: 98122
Submitted Via: Web
Date Sent: 2017-10-27
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2017-10-25
Issue: Dealing with your lender or servicer
Subissue: Need information about your loan balance or loan terms
Consumer Complaint: Greetings, I have frequent and distressing problems with my loan company, MOHELA. My current problem is that they revoked my deferment ; while confusing ( I was under the impression from them that my XXXX enrollment was sufficient through XX/XX/XXXX! ), they also did so after a barrage of bizarre messages that appeared to change my loan terms from when they was instituted ( e.g., XX/XX/XXXX -- these were consolidated loans ), then notified me that a standard payment was due with less than 10 days warning. Further, they have ( and still do ) present me with conflicting information. I managed to get that first payment in by XX/XX/XXXX ( {$260.00} ), in fear of getting a 'late payment ' tag, but they were also telling me at the same time that a payment of a different amount ( {$270.00} ) was *first* due on XX/XX/XXXX. There is still conflicting information on their website -- it both tells me that a payment is due on XX/XX/XXXX ( {$270.00} ) and that no payment is due. Interest is accruing, however. Finally, I received no official explanation for the change in terms, nor why they instantaneously increased my Current Principal to {$21000.00} from {$20000.00} ( an increase, without explanation or warning, of {$400.00} ). I have asked them repeatedly for an itemized accounting of every aspect here, and they have stopped responding and refused to provide one, even after I indicated last week that I would contact you for help. At least once a year, I have some event like this occur with this company ; things only ever get sorted when I contact the CFPB or the Federal Loans Ombudsman. I am attaching a screenshot of my account after my recent payment ( as of today, XX/XX/XXXX ). Thank you for your assistance in getting MOHELA to account to me the circumstances of my Federal Loan. Best, XXXX XXXX MOHELA Account : XXXX
Company Response: Company believes it acted appropriately as authorized by contract or law
State: IL
Zip: XXXXX
Submitted Via: Web
Date Sent: 2017-10-25
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2017-10-06
Issue: Problem with a credit reporting company's investigation into an existing problem
Subissue: Their investigation did not fix an error on your report
Consumer Complaint: I have filed several disputes about my student loans. I recently did another dispute because I have n't received information from the last dispute back from XX/XX/XXXX. I have contacted the student loan companies about removing and not active old loans. I also inquired about why are they still updating as well. Some of the loans were discharged in bankruptcy and the others transferred to XXXX. I spoke with someone XX/X/2017 about the loans, and she stated that she could n't removed the loans because they are no longer affecting my credit despite they are outdated. She also told me not to dispute the loans anymore because each time it will mess up my credit.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: AL
Zip: 352XX
Submitted Via: Web
Date Sent: 2017-10-06
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A