Date Received: 2023-12-12
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 MOHELA, a service provider for student loans, for their persistent negligence and incompetence in managing my Public Service Loan Forgiveness ( PSLF ) employment verification and qualifying payment count. Since XX/XX/2023, I have submitted several PSLF employment verification forms to MOHELA. Despite this, they have consistently failed to process these submissions and apply the qualifying payment count to my account. This ongoing issue has not only caused significant stress and inconvenience but also stands as a barrier to my financial well-being and progress in loan forgiveness under the PSLF program. Such a level of service is unacceptable and unbecoming of a company tasked with managing a matter as crucial as student loans. It is imperative that MOHELA be held accountable for their actions, or lack thereof, to ensure that borrowers like myself are not unduly harmed by their incompetence. I urge the Consumer Financial Protection Bureau to take this complaint seriously and conduct a thorough investigation into MOHELA 's practices regarding the handling of PSLF forms and payment counts. It is vital that measures are taken to rectify this situation promptly and prevent similar occurrences in the future. Thank you for your attention to this matter. I am hopeful that with your intervention, a resolution can be reached that upholds the rights and interests of student loan borrowers.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MD
Zip: 21227
Submitted Via: Web
Date Sent: 2023-12-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-12
Issue: Struggling to repay your loan
Subissue: Can't temporarily delay making payments
Consumer Complaint: Mohela loan repayment was set to begin in XX/XX/2023. I used the app feature to message on XX/XX/2023 of writing in to change my due date from the beginning of the month to the end of the month. I received no response so I decided to call. When speaking to the representative, they reported that they would change my due date and that I wouldnt have to worry about making a payment until XXXX. I was relieved and appreciative. I followed up in the app to ensure it was also updated, at which time I received notification that my loans went into forbearance until XXXX. I was grateful for how things had worked out because I am struggling with debt. I checked in XXXX and their status was still in forbearance until XX/XX/2023, only to find out yesterday that they have reported non-payment on my credit!!!! This is unacceptable! I would have found a way to pay my loans to not affect my credit score if they had not lied about changes to my due date and forbearance status. I am being crushed by this debt and now my credit score has to suffer. I need help navigating where to go from here, I will not recover from this as it continues to accumulate.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CT
Zip: 06457
Submitted Via: Web
Date Sent: 2023-12-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-12
Issue: Incorrect information on your report
Subissue: Account status incorrect
Consumer Complaint: This letter is a formal complaint that you are reporting inaccurate and incomplete credit information. According to the Fair Credit Reporting Act, Section 609 ( a ) ( 1 ) ( A ), you are required by federal law to verify, through the physical verification of the original signed consumer contract, any and all accounts that you post on a credit report. Otherwise anyone paying for your reporting services could fax, mail or email in a fraudulent account. I demand to see verifiable proof ( i.e. : an original consumer contract with my signature on it ) that you have on file for the account listed in the document attached. Your failure to positively verify these accounts has hurt my ability to obtain credit. Under the FCRA, unverifiable accounts must be removed and if you are unable to provide me a copy of verifiable proof, you must remove the account listed below.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MO
Zip: 65803
Submitted Via: Web
Date Sent: 2023-12-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-12
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: My personal banking services emailed me a notice of overdraft due to insufficient funds. I checked my account and saw that Mohela my student loan servicer processed an auto debit amount of {$1500.00} on XX/XX/2023 but my monthly payment is suppose to only be {$190.00} per month as stated on my monthly bill. I called Mohela to discuss the matter and their representative informed me it would be refunded to my account within 24 hours, unfortunately this was not true. I called Mohela again on XX/XX/2023 informing them the funds have not been refunded. My biggest concern is how this is impacting the millions of borrowers as many people can not afford the time or resources to constantly call their servicer and be on hold for hours and many do not have the means to be depleted of their personal finances due to loan servicer 's mistakes. This is an issue of administrative mistakes that serverely impacts those who are even more underprivileged. In no other business/organization would be able to wrongfully charge consumers thousands of dollars and still be operating without putting a halt to their payment processing until issues have been resolved. Another customer representative informed me they had wrongfully charged another borrower their full loan balance! There has been no accountability for their mistakes and the level of wrongdoing is appalling. Loan servicers mistakes are severely jeopardize consumer 's financial resources and put consumers at risk of their housing/rent/mortgage timely payments. I truly hope CFPB takes this matter with utmost importance to ensure this is not another system perpetuating inequality for undeserved populations.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MA
Zip: 02472
Submitted Via: Web
Date Sent: 2023-12-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-12
Issue: Dealing with your lender or servicer
Subissue: Problem with customer service
Consumer Complaint: I am requesting confirmation that my repayment plan, listed as " level '' is PSLF eligible. I was placed on this repayment plan 2 months ago after MOHELA recommended it to me and told me on a phone call is is PSLF eligible qualifying payment. I have now read in some places online that this payment plan is not eligible for PSLF. I have sent several messages to MOHELA over several months and have never received a response despite their own website saying a response will happen within 3-10 days. I am just trying to confirm that my current repayment plan with MOHELA listed as " level '' for an amount of {$500.00} will be a qualifying payment and eligible for PSLF loan forgiveness? Thank you, XXXX XXXX XXXX
Company Response: Company believes it acted appropriately as authorized by contract or law
State: UT
Zip: 84121
Submitted Via: Web
Date Sent: 2023-12-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-12
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: On XX/XX/XXXX, in anticipation of repayment restarting, I submitted an application for IDR to change my repayment plan from IBR to the new SAVE plan through the Studentaid.gov portal. I consented to having my information transmitted from the IRS to certify my income. On XX/XX/XXXX, I was advised that my account was placed on administrative forbearance to process the application. On XX/XX/XXXX, MOHELA advised that my application was denied because " To return to the SAVE Repayment Plan... [ I needed ] to provide income documentation and family size information for the period since [ I was ] last on the SAVE ( or REPAYE ) plan. ( Letter from MOHELA attached ). On XX/XX/XXXX, I advised via the MOHELA website that my income documentation should have come from studentaid.com and the IRS, and that my IDR request should not have been denied. On XX/XX/XXXX, MOHELA provided a repayment schedule change which reverted my previously IBR repayment plan loans to LEVEL repayment plan, which should have not occurred under any circumstances. ( Letter Attached ). On XX/XX/XXXX, I uploaded my XXXX tax return as supporting documentation of my income through MOHELA 's portal. On XX/XX/XXXX, having heard no response to my message to MOHELA, I again submitted an IDR request through Studentaid.gov. On XX/XX/XXXX, MOHELA advised that there would be a correspondence processing delay. On XX/XX/XXXX, MOHELA responded to my XX/XX/XXXX message, stating that a response would be provided within 15 business days. On XX/XX/XXXX, MOHELA provided the following response : " Thank you for contacting MOHELA, We apologize for any confusion. If you leave the IBR plan, your payment amount will be the standard payment amount calculated based on the outstanding balance of your eligible loans at the time you leave the IBR plan and the repayment period remaining for your loans. If you wish to repay your loans under a different repayment plan, you must first make one payment under the standard repayment plan or make a reduced payment under a forbearance agreement while on the standard repayment plan with your loan holder ( s ). If you have any additional questions, please contact us toll free at XXXX. Our hours are Monday XXXX XXXX. to XXXX XXXX, Tuesday and Wednesday XXXX XXXX. to XXXX XXXX, Thursday and Friday XXXX XXXX. to XXXX XXXX. CT. Thank you, '' This statement neither addressed the issue I raised, provided a clear resolution to the errors made by MOHELA in denying my application for IDR plan change and reverting the repayment plan to LEVEL, nor make any changes to my account, except to erroneously demand payment on the LEVEL repayment plan. On XX/XX/XXXX, I made a payment in an attempt to satisfy the payment requirement indicated by the XX/XX/XXXX message from MOHELA. I looked at my account, and then noticed that my second IDR application had been canceled by MOHELA, without my authorization or request. I was able to get into contact with a MOHELA representative/agent by telephone today, XX/XX/XXXX, who indicated that he could re-submit an IDR application and that MOHELA still had the prior tax information as received and processing, so that it could be appropriately calculated. However, MOHELA indicated that it would again put my account on an administrative forbearance to process the application. Because of MOHELA 's errors, I have sought and been unable to obtain pre-qualification for a home loan, have been on administrative forbearance for longer than is necessary to process my application ( s ), increasing the amount of time I need to work in public service to earn PSLF ( by placing me on forbearance for which I will not be able to make PSLF eligible payments ), and I have been given no justifiable reason as to why my initial application was denied.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NV
Zip: 894XX
Submitted Via: Web
Date Sent: 2023-12-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-12
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I submitted a SAVE application on XX/XX/23. As of today, XX/XX/23, it still has not been processed. In this time, they have placed me on two different types of forbearance, but did not do so for about seven weeks, although they were supposed to place me on an administrative forbearance as soon as they received my SAVE application. My current forbearance is set to end in XX/XX/23, and my payment amount has not been lowered as they have not processed my SAVE application. I have sent them three secure messages through their messaging portal. The first was sent on XX/XX/23 and asked why I had not yet been placed on an administrative forbearance. I received a " we'll be responding to your message as quickly as possible '' message on XX/XX/23. On XX/XX/23, I received a message telling me that I had been placed on a forbearance, which I was already aware of. In fact, by this time I had been placed on both an ecological disaster forbearance AND an administrative forbearance. My second message was sent on XX/XX/23. This was after I had been placed on an ecological disaster forbearance, which was set to expire in mid-November. I asked why I had not been placed on an administrative forbearance. I still have not received an answer to this question, though I have since been placed on an administrative forbearance ( though that is set to expire on XX/XX/23, which as of this complaint is in 19 days ). My last message was sent on XX/XX/23, and asked why my SAVE application had not been processed. I have not received a response. Throughout this time, my due date and interest amount kept changing. Until the last week, my loan was still accruing interest, even though it should not been. ( They did wipe the accrued interest. ) I have attempted to call MOHELA, but unsurprisingly, I have been unable to get to a representative. I work full time, and I can not just sit on hold for the eight hours it would likely take to get someone on the line. I just want my SAVE application to be processed so that I can start planning for my student loan repayment. The federal student loan website says that it typically takes 30 days to process a SAVE application, and as of today it's been about 72 days.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: IL
Zip: 60657
Submitted Via: Web
Date Sent: 2023-12-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-12
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: My account is currently in administrative forbearance, which Mohela placed me in for unknown reasons. I regularly log in to my online account to check that the forbearance is still active prior to my usual payment date to ensure I don't miss a payment. I am pursuing PSLF, so this is very important. When I logged in on XX/XX/XXXX, my account showed a smiley face icon next to a message that informed me that my account was in good standing. My loan balance was listed as {$0.00} ( rather than the approximately XXXX XXXXXXXX it should have been ). When I tried to access information about my loan details, I was shown a message that due to the status of my account, this information could not be displayed. When I tried to view my PSLF payment tracker, this option had been removed from my account. I was shown a message that informed me that Mohela did not have any PSLF information in their system for me at this time. At this point, I was confused and called Mohela to try to figure out what had happened. Due to long wait times, I was given the option to have a representative call me back. When the representative called me back, I shared all of this information with him, and he informed me that my loans had been XXXX on XX/XX/XXXX. I asked if this meant they had been forgiven, and he said they had. I asked for documentation to confirm this, and he said no letter had been generated yet, but that it would be mailed to me within 30 days. This was exciting news for me, and I returned to my account several times to see the smiley face and message. The next day ( XX/XX/XXXX ), I logged in to my account to again view the message. Instead, the smiley face icon and message of good standing was gone. I found that the full amount of my loans ( just under $ XXXX ) had been reinstated. I was again able to view my loan details, but the PSLF tracker counts were still missing. I called Mohela to find out what happened. The trainee who took my call was kind, but ultimately over the course of our hour long conversation she was unable to determine what had happened. She did not see the discharge information that the representative from the previous day had seen, and she also could not see any records of my PSLF counts. She and a supervisor suggested it might be the result of a consolidation I requested in XXXX of XXXX, but that has been completely resolved since XXXX of XXXX, and everything in my account has been correct and up to date since then- until XX/XX/XXXX. Additionally, the representative I spoke with on XX/XX/XXXX said that the administrative forbearance Mohela placed me in made it difficult for her to see information about my account.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: WI
Zip: 53211
Submitted Via: Web
Date Sent: 2023-12-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-12
Issue: Dealing with your lender or servicer
Subissue: Problem with customer service
Consumer Complaint: On XX/XX/XXXX, I have been on hold or unsuccessfully transferred for over XXXX hours. Ive attempted to reach the correct party on XXXX separate phone calls and have been disconnected once even after authorizing them to call back in case it gets disconnected. Whats the purpose of this feature if you wont call back??? This customer service is DEPLORABLE considering the amount of money involved. I need a refund of the interest Mohela has been collecting despite being under an administrative forbearance since XXXX.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: TX
Zip: 77833
Submitted Via: Web
Date Sent: 2023-12-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-12
Issue: Dealing with your lender or servicer
Subissue: Need information about your loan balance or loan terms
Consumer Complaint: Hello : How do I get my loans discharged since they are over 20 years old and I have worked for XXXX, XXXX, and XXXX XXXX as a XXXX XXXX for XXXX years? I have contacted my loan servicer, Mohela, on several occasions, via phone and email, requesting information on how I get my loans discharged. Today, Mohela contacted me and could not advise me how to request my students loans get discharged. Additionally, I contacted StudentAid.gov for the same reason and was told to contact Mohela. I am exhausted with going in circles on this issue. I need definitive information on how to get my loans discharged in their entirety. Thanks in advance for your assistance. XXXX XXXX XXXX
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NC
Zip: 27410
Submitted Via: Web
Date Sent: 2023-12-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A