Date Received: 2023-12-31
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I applied for the XXXX repayment plan when it was released by the XXXX administration. I have 3 XXXX applications still in pending status and my loans have moved back into repayment. I contacted Mohela on XX/XX/XXXX and spoke with XXXX who indicated she could see my XXXX application was submitted but has not yet been processed. She offered a one month forbearance on the payment through XX/XX/XXXX to allow Mohela time to process the XXXX application. She indicated I will accrue interest in the forbearance and that I am not eligible for any benefits of the repayment plan during the forbearance. I received another notification yesterday indicating there are significant delays and my request was received and will be addressed in the next 90 days. My forbearance was only offered for XXXX month. They have not processed my initial SAVE application that was submitted in efforts to reduce my monthly payment prior to this forbearance.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: WA
Zip: 98042
Submitted Via: Web
Date Sent: 2023-12-31
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-31
Issue: Struggling to repay your loan
Subissue: Problem with your payment plan
Consumer Complaint: When student loan payments were going back into effect, I went to StudenAid.gov to view my options. They estimated consolidating my loans and participating in the SAVE program would be the cheapest and most effective repayment plan for me. Therefore, I opted to consolidate my loans and go with the SAVE program. After this step was completed, all of my loans where transferred to Mohela. They are now indicating I am to pay approximately $ XXXX, which is not affordable. They are also expecting me to make payments for the next 30 years even though I have been making payments for 6 years already. This is putting my total payments at {$130000.00}, my current balance is only {$70000.00}! I understand how interest works, but this is practically doubling what I currently owe. This is extremely frustrating, especially considering I have already paid off almost half of my initial loan borrowing. I called Mohela in attempt to resolve this problem. To my calculation, even with interest, it would be a lower monthly payment and a lower overall repayment to switch to a standard 10 year repayment plan ( even if that means I sacrifice PSLF ). I was told since I consolidated my loans, I am no longer eligible for a standard 10 year repayment plan, and my only options were to participate in a 30 year repayment plan, which significantly increases my monthly and my total overall payments. According to information about the SAVE plan on StudentAid.gov, " The maximum repayment period is capped at 20 years for those with only XXXX loans and 25 years for those with any XXXX school loans. '' 30 years is beyond the maximum repayment period. They are requiring me to make payments beyond the maximum repayment period. I am now stuck with an unreasonable monthly ( and total ) repayment plan that is as lengthy as a mortgage. During the transitional time of having my loans bought out by Mohela, there was a significant period of time where previous loan servicers and StudentAid.gov reported I had a balance of {$0.00}. It was also reported to all major credit bureaus that my loans had been paid off and the accounts were closed. It wasn't until a significant period of time later that I was finally contacted by Mohela about repayment. I feel extremely mislead about the status of my student loans, especially since the credit reporting is a major change.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NC
Zip: 279XX
Submitted Via: Web
Date Sent: 2023-12-31
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-31
Issue: Struggling to repay your loan
Subissue: Problem with forgiveness, cancellation, or discharge
Consumer Complaint: My student loans were transferred to Mohela several months ago. On XX/XX/XXXX, I submitted a consolidation application and an income driven repayment application ; both of which are still " in review '' per studentaid.gov. For years, I have qualified for income driven repayment and my income has not changed so I do not anticipate it will change this time. However, Mohela has me schedule to start paying over {$700.00} a month beginning XX/XX/XXXX. This is half of my monthly income, if not more. I can not reach a representative at Mohela due to extended wait times that I can not accommodate. I have submitted complaints with Mohela and XXXX, but the due date is fast approaching and I can not afford the payment they are seeking. Sending a bill for a loan that has an incomplete application is unacceptable and feels fraudulent.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: KY
Zip: 41051
Submitted Via: Web
Date Sent: 2023-12-31
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-31
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: On XX/XX/XXXX, I received a letter from MOHELA stating that my monthly payment amount for SAVE is scheduled to expire after my XX/XX/XXXX, payment date. Today, on their website, my IDR renewal date is listed as XX/XX/XXXX, which is before my XX/XX/XXXX payment will be made. I do not understand the contradictory information. I would like an explanation from MOHELA and them to correct any records, their website, and correspondence to reflect the correct IDR expiration date. Additionally, given the severe issues with customer service, I would like to know by what date I will need to apply for my IDR to guarantee no lapse in my reduced SAVE payment. The original letter as well as what I currently see on the website are both attached as documents.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: GA
Zip: 30341
Submitted Via: Web
Date Sent: 2023-12-31
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-31
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: The company will not connect with fasfa to process my save repayment program and lower my payment to what I can afford/what the fasfa website said I could get it to.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: SC
Zip: 29650
Submitted Via: Web
Date Sent: 2023-12-31
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-31
Issue: Struggling to repay your loan
Subissue: Problem with your payment plan
Consumer Complaint: Upon applying for the IDR ( SAVE ) plan, I was informed that my estimated payment will be somewhere around {$250.00} a month give or take. Some time towards the end of XXXX almost XXXX I logged into my Mohela account t and saw my total due amount jump to $ XXXX. I decided to submit a new IDR application just incase there was an issue. I then contacted Mohela to find out why my amount increased almost by 100 % and they were unable to explain why. They did however place my account into forbearance while they reviewed my recently submitted application to adjust the amount. This took place in XX/XX/2023. Somehow after resubmitting the application my new balance due post forbearance has gone up to $ XXXX. I have included my application submitted XX/XX/2023 for reference along with a screenshot of my current balance as of XX/XX/2023.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: IL
Zip: 60473
Submitted Via: Web
Date Sent: 2023-12-31
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-31
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: This is a follow-up complaint from the initial complaint I filed on XX/XX/XXXX # XXXX. Please refer to this initial complaint for additional history on my account. This follow-up is warranted because the correction made to my account in XX/XX/XXXX still does not comply with the CARES Act for student loan income driven repayment income recertification. My account was updated in XX/XX/XXXX following my initial complaint with an IDR Recertification date adjustment from XX/XX/XXXX to XX/XX/XXXX. Due to the CARES Act, and according to information provided by the U.S. Department of Education on the fsa.gov website, income recertification for income-based repayment is not required and can not be required by loan servicers any date before 6 months after the end of the student loan payment pause. The earliest recertification for any direct federal loans based on this information would be on or after XX/XX/XXXX. Since my initial IBR income recertification date was scheduled for XX/XX/XXXX, this date should have been pushed by 12 months automatically and then based on the current scheduled end of the student loan pause, by another 12 months to reflect a date of XX/XX/XXXX. This would entail the same monthly payment requirement as was determined by my IDR application in the amount of {$170.00} starting with payments on XX/XX/XXXX to be certified through XX/XX/XXXX. I have called MOHELA customer service an additional two times to get the IDR income recertification date updated to be in compliance with the CARES Act twice since the last correction was made to my account with calls on XX/XX/XXXX and XX/XX/XXXX. The first call on XX/XX/XXXX, the customer service representative assured me that my account would be corrected and an additional call would not be warranted. Without any change occurring on my account in the subsequent 30 days, and the date in question coming up rapidly, I called again on XX/XX/XXXX to check the status and notify MOHELA that I would pursue an additional consumer protection complaint if the issue was not fixed within 30 days. I am requesting that MOHELA adjust my income driven repayment plan income recertification date to be in compliance with the CARES Act and therefore, the date currently reflected on my account of XX/XX/XXXX be updated to XX/XX/XXXX.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CO
Zip: 80526
Submitted Via: Web
Date Sent: 2023-12-31
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-31
Issue: Struggling to repay your loan
Subissue: Problem with forgiveness, cancellation, or discharge
Consumer Complaint: My student loans have been in repayment for more than 20 years which should qualify for immediate forgiveness according to the one-time adjustment to fix IDR loan forgiveness.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: TN
Zip: 37115
Submitted Via: Web
Date Sent: 2023-12-31
Company Response to Consumer: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2024-01-01
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: My student loan has met the terms for forgiveness. MOHELA first said I needed to complete a new employment certification. I submitted it and was told it would take 30 days to review. It has now been over 90 days and they are now claiming my employment certification is unacceptable.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NY
Zip: 11226
Submitted Via: Web
Date Sent: 2024-01-01
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-31
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I submitted an application for the income-driven repayment plan ( SAVE ) back in XX/XX/2023 with Mohela, who is my loan service provider. Since then, I have called at least once a month to check on the status of the application, because it was not getting processed. I was repeatedly told that it would take around 10-15 business days. On late XXXX, the customer service specialist I spoke with said that for some unknown reason, my application did not get processed, and she sent it to a higher priority list. She said there was nothing missing from my end ; it was a delay from Mohela itself. Again, I was told that this time it would certainly take 10-15 business days. It is now XX/XX/2023, and the application is still under processing. Because of the delay, interest is being accrued on my loan. I have repeatedly asked if there was something missing from my end, and the answer I always received was no. I have done my part since XXXX, and I'm still waiting three months later for Mohela to take care of their end.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: TX
Zip: 76107
Submitted Via: Web
Date Sent: 2023-12-31
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A