Date Received: 2023-12-09
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: No payment is due while processing Sweet V Cardona. My school is listed in Exhibit C and money is owed to me by MOHELA. Violating terms of Sweet V Cardona settlement by trying to collect payment.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: WA
Zip: 98198
Submitted Via: Web
Date Sent: 2023-12-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-09
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I applied for the new XXXX plan in XXXX of XXXX. My new payment did not show up on my account for well past my first due date of XXXXXXXX. When I got the updated bill it was not sent to me with XXXX weeks notice although it was back dated to make it look like I had received it earlier. I then received correspondence saying my XXXX plan was approved and my new payment was {$290.00} due XX/XX/2023. However my account still showed my old payment of {$360.00}. I sent several secure messages during the time that went unanswered for weeks. I finally called XX/XX/2023 and waited on hold for over an hour before I spoke with a rep, XXXX. She initially said my XXXX plan payment was due on XXXX. But my old payment was still due in XXXX. I asked her to investigate this because thay made no sense when I had applied for the new payment plan in XXXX. After a few minutes she came back on the line to let me know that they will put my account in a admin forbearance at this time and my first payment will not be until XX/XX/2023. However my account now shows my new payment due but my account is overdue for my original amount. I have once again sent several secure messages without response. My account is accruing interest even though this should not happen while on the XXXX plan. I do not want my credit report effected due to the error in processing my loans.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: AZ
Zip: 85381
Submitted Via: Web
Date Sent: 2023-12-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-09
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I applied for an Income-Based Repayment Plan on XX/XX/. My student loans are serviced by Mohela. As of XX/XX/, the Income-Based Repayment Plan has not been processed and I have received no word from the company. I contacted Mohela on XX/XX/XXXX to ask for a status update, but so far I have not received a response. In the mean time, Mohela sent me a bill for {$5100.00} due on XX/XX/. This is a sum I can not afford and would otherwise not be billed if my Income-Based Repayment Plan were processed on time. I am concern this will put me into delinquency.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 92677
Submitted Via: Web
Date Sent: 2023-12-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-09
Issue: Dealing with your lender or servicer
Subissue: Need information about your loan balance or loan terms
Consumer Complaint: For years I have tried to get information from Mohela, spent countless hours on hold, and received bad information when finally reaching someone. Most recently, I have spent hours trying to reach someone, but no one ever picks up or calls me back. I can't understand how I could still owe money on my federal loans, if I've made 126 PSLF qualifying payments ( per the information in my account profile ) and you only need to make 120 qualifying payments. Meanwhile I continue to be charged each month and accrue interest. If someone would just explain this to me, I could pay what I need to pay, or resolve the issue, but the information available online in my account makes no sense and you can not reach anyone for more information. As a more general issue, this company should be investigated, they consistently give out misleading information, and make you resubmit the same thing over and over again while never looking at their own errors or improving their processes. I work in public service, I pay my taxes, and it is infuriating to be treated like this by this company which is being paid with taxpayer dollars. Dealing with them has become a second job and a misery.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: IN
Zip: 46260
Submitted Via: Web
Date Sent: 2023-12-09
Company Response to Consumer: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-10
Issue: Dealing with your lender or servicer
Subissue: Don't agree with the fees charged
Consumer Complaint: XXXX XXXX XXXX ( XXXX ) did not respond to my challenges and did not received my Diploma and i reach out to MOHELA and The Department of Education to further take actions againts the School. I asked MOHELA to freezes the loan, but no responds. I hope this does not affect my yearly income taxes or i will retaliate.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: FL
Zip: 32822
Submitted Via: Web
Date Sent: 2023-12-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-08
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: When the REPAYE plan was switched to the SAVE plan, my payment went up not down, which made no sense. Additionally, it is significantly higher than ( 1 ) I was told it would be via the estimator, ( 2 ) I was counseled it would be by Mohela reps, ( 3 ) it should be based on the outlined calculation process, ( 4 ) similarly situated peers with similar income and debt. In addition to not being able to articulate the reasoning for the payment amount continually adjusted to the higher rate, I also received a statement demanding payment for an even greater amount beyond what it states in my account is my monthly payment. Again, Mohela was unable to explain to me why the amount was upped. I have spoken to no less than five representatives over the last three weeks. I have asked for calls back and they were never returned. I have spent over 7 hours on hold. I can not get a hold of anyone and when I do no one will provide me answers or documentation for the discrepancies.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: GA
Zip: 30236
Submitted Via: Web
Date Sent: 2023-12-08
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-08
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I am writing to file a formal complaint against Missouri Higher Education Loan Authority ( MOHELA ) regarding their failure to update my student loan account status as " paid in full '' despite the full repayment of the loan. My loan account reference number is XXXX, and I am deeply concerned about the inaccurate reporting of my account status. I successfully completed the repayment of my student loan with Mohela on XX/XX/. I have attached a copy of the paid-in-full confirmation ( the 1099-C Copy B ) that I received from the IRS/Mohela, which clearly indicates the cancellation of the debt. Despite this, my account on their platform still reflects an outstanding balance and does not reflect the accurate " paid in full '' status. This discrepancy has serious consequences for me, as it affects my credit report and financial standing. I have diligently fulfilled my obligation to repay the loan, and I expect accurate and timely reporting from Mohela to the credit bureaus. The failure to update my account status has the potential to harm my credit score and financial reputation. I have attempted to resolve this matter with Mohela directly by contacting their customer service at XXXX but they act like they didn't know what I was talking about. However, my efforts have been unsuccessful, and the issue remains unresolved. I kindly request that the Consumer Financial Protection Bureau investigate this matter and take appropriate action to ensure that Mohela updates my account status to accurately reflect the paid-in-full status of my student loan. Additionally, I request that Mohela be held accountable for any potential harm caused to my credit score and financial standing due to their failure to report the accurate information. I appreciate your prompt attention to this matter and look forward to a resolution that ensures the accuracy of my credit report.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: TX
Zip: 75034
Submitted Via: Web
Date Sent: 2023-12-08
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-08
Issue: Struggling to repay your loan
Subissue: Problem with forgiveness, cancellation, or discharge
Consumer Complaint: I am writing to file a complaint concerning the Department of Education and Mohelas failure to provide me with proper notification of the requirements to consolidate loans or the deadline to consolidate before XX/XX/XXXX. I originally applied for Public Service Loan Forgiveness ( PSLF ) on XX/XX/XXXX. I did not receive notification about my loans until XX/XX/XXXX, nearly XXXX years later. The letter stated that only about half my loans were forgiven due to all of them not being consolidated. It then mentioned that I should consolidate my loans by the deadline of XX/XX/XXXX. I was never given any notification of the deadline to consolidate loans or the requirements to qualify for PSLF. I only received a welcome letter dated XX/XX/XXXX, with no mention of the deadline or requirements. When I spoke to XXXX XXXX ( employee # XXXX ), she stated that the earliest I could have received the letter was XX/XX/XXXX, due to mailing delays and distance. She did state that this was not normal business practices. It is inconceivable that I would not consolidate my loans and have them all forgiven if given proper notification to do so. The process of notification, getting help, talking to a representative, or getting up to date information has been a nightmare. I spoke with Mohela on XX/XX/XXXX. I was on the phone for one hour and eleven minutes. Trying to reach a person involved going through numerous menus that only encouraged me to hang up or go to the website for about twenty minutes. Then I was given the same deadline that I was not informed of. I asked to speak to a supervisor. After being on hold for another 25 minutes, I spoke with XXXX. She had no answers about why proper notification was not given. Numerous other attempts failed to even allow me to get to talk to a representative. Mohela just leaves you on hold and then the phone disconnects. The Washington Post reported that there have been complaints to the Consumer Financial Protection Bureau of wait times of 5-6 hours to talk to a representative ( XXXX XXXX XXXXXXXX ). The article listed XXXX active complaints of borrowers not being able to talk to representatives about such things as basic as loan amounts and payment counts. This article was written on XX/XX/XXXX, and I can testify that things havent been remedied. I know that I am not the only one who has been affected by the willful and predatory practices of the Department of Education and Mohela. I believe that the Department of Education violated the Higher Education Act of 1965 by not giving yearly notice or explaining what was necessary to qualify for forgiveness for the public service loan forgiveness programs. The Higher Education Act of 1965 requires the Department of Education and service providers to provide yearly notice to borrowers about the terms and conditions of loan forgiveness programs. The Department of Education also has a duty to explain what is necessary to qualify for forgiveness. These are the sections of the HEA of 65 that I believe were violated : 1. Loan services have a responsibility to provide proper notification to borrowers before disbursement of loans, as mandated by Section 433 ( a ) ( 1 ) ( A ) of the HEA. If borrowers did not receive adequate notification about their loan terms and conditions, including interest rates and repayment options, then they may have taken on more debt than they could afford or may not have fully understood the long-term financial consequences of their borrowing. This lack of notification may have contributed to the need for loan forgiveness in the first place. 2. The HEA requires loan services to inform borrowers of their eligibility for loan forgiveness programs, such as the Public Service Loan Forgiveness ( PSLF ) program, as outlined in Section 455 ( a ) ( 1 ) and Section 455 ( m ) ( 1 ). If loan services failed to provide this information, borrowers may not have been aware of their eligibility for loan forgiveness and may have missed out on an opportunity to reduce their debt burden. 3. The HEA also requires loan services to inform borrowers of their eligibility for income-driven repayment plans, as specified in Section 455 ( d ) ( 1 ). If loan services did not provide this information, borrowers may not have been aware of their options for managing their loan payments and reducing their debt burden, which could have contributed to their need for loan forgiveness. It seems the whole goal of Mohela is to use a campaign of delay, misinformation, and bureaucratic red tape to exhaust borrowers into giving up their rights and protections given by federal law. I thought the Department of Education was there to protect borrowers from unscrupulous business practices. In my case, the DOE just rubber stamped Moehela 's predatory, unlawful, and unfair business practices. It appears that no one even gave my claims a cursory glance. I was only ( at best ) given three days to consolidate before the deadline in a letter that never mentions the requirement for consolidation or the deadline. My PSLF application was done in XXXX of XXXX. I didnt receive notification until XXXX year later. That letter instructed me to consolidate my loans by a deadline that was XXXX months past. That seems predatory especially considering Mohela has a financial incentive to keep borrowers on their books. I found out some very disturbing facts about the PSLF program while researching for my complaint. From XXXX until XXXX, the total number of applicants granted PSLF forgiveness totaled XXXX. Thats everybody for XXXX years. XXXX!!!!! Thats seems hard to even understand. Currently, there are about 41 million borrowers, and, even with the new temporary forgiveness guidelines, only about 650,000 have received forgiveness. That works out to about 1.6 %. It seems the goal for this forgiveness program is actually to prevent forgiveness. XXXX XXXX XXXX XXXX XXXX XXXX XXXX this program sought to help for XXXX years. I am not XXXX currently due to a XXXX XXXX XXXX. I am no longer eligible for this PSLF program until I return XXXX XXXX. I was the perfect candidate for the temporary provisions in the PSLF program and I would have had all my loans forgiven. As it stands now, I owe at least {$39000.00} and my payments start on XX/XX/XXXX. The rollout of the requirements for this program appear to change arbitrarily and without notice. Please contact me if you need any more information or evidence. I would sincerely appreciate someone trying to find any communication with me regarding the issues discussed. I have challenged Mohela, XXXX XXXX, and DOE to find any communication that would serve as proper notification. I dont believe anyone is even reading my complaints. I will be faxing this complaint as well. Since I originally wrote this, things are worse. I wrote the above in May. I sent this to Moehela and DOE. No response except an automatic reply that I requested be escalated to the ombudsman. That was before XX/XX/XXXX. In XXXX of XXXX, I physically mailed, emailed, and faxed all this and my documentation that clearly proves my case. No response at all. Moehela doesn't even try to communicate with you anymore. The XXXX office has not contacted me in 7 months. I am not exaggerating that there is no communication about these issue at all. You can't get someone at Moehela even if you wait 5-6 hours on hold. They literally just disconnect you. Please, please help. Hold Moehela and DOE responsible.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: GA
Zip: 310XX
Submitted Via: Web
Date Sent: 2023-12-08
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-08
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: Applied for SAVE XX/XX/2023. Advised by Student Aid department that application would take XXXX days. Application approved XX/XX/2023. Received mail from MOHELA confirming application had processed successfully and application had entered SAVE repayment. Setup auto debit online - confirmed due date with first payment in XXXX. Reviewed website XX/XX/2023 - loans now placed in Forbearance. Call center first told me it was due to natural disaster is state for which I was not affected - XXXX minutes later, phone representative says it is a processing forbearance and they will charge me for the interest. Application had already been approved, auto debit had been approved, mail received confirming due date in XXXX in early XXXX. MOHELA is unable to confirm info due to long wait lines but I did not consent to this forbearance and it is predatory after I had been informed everything was set for my SAVE enrollment.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: IL
Zip: 60607
Submitted Via: Web
Date Sent: 2023-12-08
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-08
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: My student loans were recently transitioned to Mohela at the end of XXXX. I had tried to pay my student loan earlier in XXXX like I normally do and was told I could not pay until Mohela sent me an email with all my account Information so I could make an account as my loans were currently transitioning to a new servicer. Mohela did not send me information until XXXX XXXX by email. When I made my account it told me I was past due. I was upset because I have never been past due before and alway pay my student loans and bills on time. I called Mohela on XXXX XXXX and spoke to a representative who told me that because my loan was given to them at the end of the month my account was wrong and I was not past due. She told me that Mohela would fix my account before my next payment was due on XX/XX/XXXX and that I also did not have to pay the late fee as I was in fact not late. I logged in XX/XX/XXXX to see if Mohela had fixed my account as my loan is due the following week. Not only does my account still say I am past due but has also added another payment and now it says I have to pay {$340.00} by XX/XX/24 instead of {$170.00}. When I call it says I have been sent to a debit collector until my account is up to date. I had also sent them a complaint on the XXXX before I called by message on their account. No one ever responded. I again called XX/XX/XXXX I have was on the phone with a representative for more than XXXX hr and my problem still has not been fixed. The representative said that Mohela did not receive my account until after the student loan due date and she was attempting to verify how much my monthly payment was and if I owed any late fees or anything from XXXX. She also confirmed the system showed Mohela did not send me notifications until after XXXX Also XX/XX/XXXX or the XXXX I have received letters both those days from Mohela in the mail that states my account has been transferred to Mohela . Mohela wants me to pay in XXXX but does not send me email notifications until XX/XX/XXXX and letter notifications until XX/XX/XXXX the earliest. I have informed delivery with USPS and can see when a letter arrives with a picture. While the letter is dated XX/XX/XXXX ; I did not get it until XXXX. I have been very communicative with Mohela. I understand they are getting a lot of loans from many students but the amount of disorganization and handling of student accounts is not acceptable. This problem directly affects my credit report and is not fair to someone who always pays on time and has been in contact with Mohela multiple times. After XXXX hr and XXXX mins on the phone I was told to either day the {$170.00} from XXXX or do Forbearance for XXXX. I asked why would I do Forbearance as that penalizes me by adding interest and the whole reason my student loans were transitioned from XXXX to Mohela is because I was accepted into the public loan forgiveness program. Doing forbearance affects the program. She told me basically that interest would be added anyway to my loan whether I did forbearance or not. This is not the type of advice I want and I do not wish to do Forbearance. For the month of XXXX I will now be forced to make XXXX payments instead of XXXX. Mohela blamed my previous servicer and stated they should have let me pay despite the account saying I could not pay because my loans were being transferred to Mohela and I had to wait to get my first email from Mohela before I could make a payment. When my loans were first transferred to XXXX something similar happened but I was not forced to pay twice in 1 month or do forbearance as Mohela told me to do. XXXX treated me very well while Mohela never answers. I also was not notified my loans would be transferred to Mohela until I attempted to pay in XXXX with my past service loan provider. I would also like a new service loan provider as I find Mohela to be irresponsible. Paying almost {$400.00} in 1 month was not planned in my monthly budget. I do not want a company who also tells me forbearance does not add extra interest or penalizes me when I know for a fact it does and it adds more to my overall balance. This erroneous information is what a more innocent or inexperienced borrowers fall for and then pay the price. The fact that Mohela does not even know how forbearance works is a great concern to me. On XX/XX/XXXX I officially filed a complaint on studentaid.gov. Mohela had XXXX days to answer ; it is now the XXXX day and Mohela has yet to answer my complaint. Their unresponsiveness to any message and complaint is of great concern. I also do not wish to have a service provider who refuses to communicate at all with me and wish my loans to be transferred to a new servicer who will actually work with me and answer. I decided to officially write a complaint here as Mohela refuses to communicate to anything I have sent them.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MO
Zip: 65203
Submitted Via: Web
Date Sent: 2023-12-08
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A