Date Received: 2023-11-22
Issue: Dealing with your lender or servicer
Subissue: Problem with customer service
Consumer Complaint: Several borrowers were granted a 3-month administrative forbearance due to Mohela 's failure to provide billing statements a full 21 days before the resumption of student loan payments. Notably, Mohela faced a historic fine for this specific issue. Affected individuals were informed of their placement on administrative forbearance and instructed to contact Mohela to request a refund for their XXXX and XXXX payments. Upon discovering that my account was not placed on administrative forbearance and that my payments for XXXX and XXXX were processed, I contacted Mohela and engaged in a conversation with XXXX, XXXX # XXXX. She explained that, as I was enrolled in auto-debit, I did not receive a traditional billing statement. Instead, I received an auto-debit reminder on XX/XX/XXXX for the payment scheduled for XX/XX/XXXX. However, the email reminder actually arrived on XX/XX/XXXX, providing only a 10-day notice before the payment draft ( see attachment ). This falls short of the required 21-day advance notice. This happened again in XXXX as I was notified on XX/XX/XXXX that my bill was due on XX/XX/XXXX ; again not providing me the full 21-day notice. XXXX clarified that the forbearance was exclusively intended for those affected by the lack of a 21-day notice through a billing statement. Nevertheless, I did not receive a billing statement at all, and if the auto-debit notification is considered the billing statement, I was not notified 21 days before the payment was drafted. Also, I never signed up for auto debit with Mohela, that information was transferred from my previous servicer. Mohela has had so many problems that I was terrified to change anything on my account. It is evident that this policy has not been consistently applied to individuals on auto-debit who faced similar issues. The same policy applied to those who did not receive billing statements 21 days prior to their payment due date should be applied to those who are on auto debit as we are similarly affected.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: AZ
Zip: 85051
Submitted Via: Web
Date Sent: 2023-11-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-11-22
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: On XX/XX/XXXXXXXX I was notified that one of my three direct loans were moved to LEVEL payment plan. The other two loans were correctly moved to SAVE plan. All loans on REPAYE were supposed to go to SAVE and it appeared correct up until XXXX. Unfortunately now the payment on Level is higher than it should be and one of my three loans will be paid off in the next year. If the SAVE repayment plan eligibility after XX/XX/XXXXXXXX goes through as planned with making payments for 10 years I will have all of my loans forgiven but less will be forgiven if the loan stays on LEVEL plan. I contacted Mohela through secure messaging on XX/XX/XXXXXXXX but have not received a response and no change was made. My auto payment went through earlier this week and was higher than it should have been due to Mohela 's error.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MI
Zip: 48371
Submitted Via: Web
Date Sent: 2023-11-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-11-23
Issue: Written notification about debt
Subissue: Didn't receive enough information to verify debt
Consumer Complaint: I am writing to request the immediate correction of inaccurate information on my credit report, specifically pertaining to late payments on my account. I have recently spoken with a representative from the bank, and they have acknowledged the error and agreed to update their records upon receipt of a goodwill letter which was sent last XX/XX/23. The bank indicated that once a XXXX letter is submitted, they will take the necessary steps to update their records and correct the inaccuracies related to late payments on my account. The representative assured me that they are committed to rectifying this error promptly. I kindly request that you cooperate with the bank in this matter and promptly update the information on my credit report to reflect the corrected status of my account. XXXX XXXX XXXX XXXX XXXXThose payments were made on time. I am requesting that the late payment markings be updated to reflect my accurate payment history. XXXX XXXX XXXX XXXX XXXXThose payments were made on time. I am requesting that the late payment markings be updated to reflect my accurate payment history. XXXX XXXX XXXX XXXX XXXXThose payments were made on time. I am requesting that the late payment markings be updated to reflect my accurate payment history.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 90008
Submitted Via: Web
Date Sent: 2023-11-23
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-11-22
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: MOHELA has not provided me with a sufficient answer as to why I did not receive a billing statement 21 days before the due date. In my secure inbox, I received a direct debit notification on XX/XX/XXXX for withdrawal on XX/XX/XXXX. MOHELA claims they sent it on XX/XX/XXXX which is completely false. This is a violation of the federally published 21 day mandate. Additionally, the direct debit statement, which is not a bill, did not include any information as to the interest amounts accrued with all fields marked as not applicable. How am I supposed to continue to make payments and plan when MOHELA obfuscates information, makes it impossible to understand interest accruals, and does not send out actual billing statements? A direct debit notice is not a bill. Additionally, only sending notices to the secure inbox is not useful. I requested to switch to paper and have not received a response.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: PA
Zip: 150XX
Submitted Via: Web
Date Sent: 2023-11-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-11-22
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: My loan servicer for loan consolidation for PSLF was XXXX. From XXXX to XXXX I applied for PSLF four times. On XXXXXX/XX/XXXX, that loan was transferred to Mohela to process PSLF. My first employer for PSLF was approved on XX/XX/XXXX, and the second on XX/XX/XXXX. Also on XX/XX/XXXX, my IDR paperwork ( which I submitted twice ) was approved, and twice I requested forbearance while they sussed out the XXXX payments count. Today Mohela raided my bank account without warning, and took over {$1100.00}. Im unemployed, and my IDR payment was {$0.00}. *I never, ever gave Mohela my bank account info, and can only assume that they imported it from XXXX XXXX XXXX I also cant remove my bank account info, since it appears nowhere on the Mohela website. I have no idea where they store my information, when I will be charged, how much I will be charged, and how frequently. I received no billing statement prior, and have no idea how they came up with this dollar amount. This is insane. I feel like I have no choice but to close this bank account so that I can pay other bills, because Mohela is literally stealing from me. How did this criminal enterprise come to be in charge of PSLF? I feel like Im being punished for public service, and they are *impossible to reach*, the website is nonfunctional its a complete disaster, and I want my money back from these thieves.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: OR
Zip: 97236
Submitted Via: Web
Date Sent: 2023-11-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-11-22
Issue: Incorrect information on your report
Subissue: Account information incorrect
Consumer Complaint: I made a very large payment against this student loan. It has been 90 days and they ( Mohela ) has not reported it to the credit report agencies. I did disputes with the 3 major credit report agencies and provided documentation from the Mohela website which clearly shows a very large payment against my balance, but Mohela will not confirm and the 3 major credit reports close out the dispute without any changes.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: IL
Zip: XXXXX
Submitted Via: Web
Date Sent: 2023-11-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-11-22
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Mohela is my current loan servicer on my federal student loans. I have been working for the XXXX of Wisconsin for over 25 years all in public service and have made more than the required XXXX payments under the XXXX program. They say I have only made payments that total XXXX and am short of the XXXX but during XXXX payments were put on hold and we were supposed to get credit for those payments. If and when those months are counted towards the XXXX I would easily be forgiven. Also I have never received although I have asked during numerous phone calls in the months of XXXX and XXXX on what is the hold up. I have also made payments to NAVIENT which was my other service provider prior to consolidation with Mohela and under the rules, I was supposed to receive credit for all these payments as well. Mohela told me they would look into it and get back to me but they just send empty messages that don't directly answer my questions. I have also started repayments again on these loans under the PLSF but I feel I have made more than the XXXX payments and should be receiving money back for overpayment. The customer service is lacking at Mohela, when I called in XXXX I was on hold for over XXXX minutes and then received a person who was getting trained as my support staff. I knew more about the program than she did. Totally unacceptable. Please help me.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: WI
Zip: 539XX
Submitted Via: Web
Date Sent: 2023-11-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-11-22
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: Consumer Finance : Please take action against Mohela. 1. They do not respond to emails for weeks. 2. In order to get a hold of anyone on the phone, student loan borrowers have to listen to approximately 10 minutes of monologue recording that often has nothing to do with the reason for calling. 3. They have repeatedly put my accounts in forbearance, despite my telling them repeatedly not to make changes to my accounts without my consent. They told me on the phone that the administrative forbearance does not stop interest accumulation and they may not be able to have lifted the forbearance until after the end of the month. Thus, significant interest will accrue and I will miss out on a qualifying payment towards loan forgiveness ( they say that if I make a payment while Im in forbearance, it would be applied to the next month, and they would refuse to make it qualify for PSLF. 4. Their representative admitted to me on the phone that there are large numbers of student loan forgiveness pursuers who have also called and asked they not force forbearances. They say because of that, there is a backlog, so they may not be able to get to my forbearance lift quickly. Hence, if they didn't force accounts into forbearance, they wouldn't have these issues. Mohela really needs to be more fully scrutinized, regulated, and monitored by overhead financial institutions that take consumer protection seriously.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: FL
Zip: 32311
Submitted Via: Web
Date Sent: 2023-11-22
Company Response to Consumer: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-11-22
Issue: Struggling to repay your loan
Subissue: Problem with your payment plan
Consumer Complaint: I went online to apply for the XXXX payment plan. I received information back that was bringing my payment higher than my original amount before the president 's forbearance on student loans. My original payment was {$420.00} I contacted Mohela by phone to apply for the XXXX plan. I was given an amount of {$110.00} monthly under the XXXX payment plan. I received correspondence in the mail from Mohela stating my payment under the IDR plan will be {$420.00}. I contacted Mohela again by phone and stated that I applied for the XXXX payment plan and not the IDR payment plan. I gave my financial information and my payment was calculated to be {$110.00}. I received correspondence again from Mohela in the mail, stating my payment would be {$410.00} I contacted Mohela again and was told by an associate in training, that I don't qualify for the XXXX payment plan and that I have to stay on the IDR payment plan, if I want to continue with the Public Service Loan Forgiveness ( PSLF ).
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MD
Zip: 20874
Submitted Via: Web
Date Sent: 2023-11-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-11-22
Issue: Dealing with your lender or servicer
Subissue: Problem with customer service
Consumer Complaint: on XX/XX/XXXX I applied for the new SAVE plan rather than continue with the PAYE plan for my student loans after utilizing the studentaid.gov website tools and deciding SAVE was the best plan for me. Using the federal website, I was able to easily apply and from what I understand attach my tax information to my application. I applied when I did to ensure my loan repayment would start ON TIME. However, Mohela has demonstrated an incredible incompetence despite the THREE YEARS they had to prep for repayment on top of what I hope is not gender based discrimination based on the fact that I am the sole income earner in our household. Mohela denied my SAVE application on XX/XX/XXXX stating they needed my husband 's income for the application thus putting my loans in Forbearance. I am now worried will cost me thousands of dollars in accruing interest and may ruin my streak of on-time auto-payments. On the list of accepted documents for my husband 's income Mohela sent me they stated the would accept a tax return which is confusing because I was under the impression they had received MY tax return which is also HIS because WE FILE JOINTLY. It also states on OUR TAX RETURN he is UNEMPLOYED and has no income. When I reached out to Mohela they took months to respond to my online messages. I sent two messages on XX/XX/XXXX and XX/XX/XXXX and did not hear back until XX/XX/XXXX. Additionally, their responses were not helpful at all. I submitted multiple documents on XX/XX/XXXX confirming that I am the sole income earner in our family and had not heard back until the XX/XX/XXXX message. I assumed after three weeks they would not contact me unless I contacted them so I attempted to call them on XX/XX/XXXX despite their repeated pleas not to do so. Their caller wait queue had put me on hold for over XXXX hours before I finally could talk to someone regarding my issue. I was told then to wait a week for my application to be processed but it is STILL NOT PROCESSED and it has been MONTHS. I attempted to call again on XX/XX/XXXX after a week had passed and they at least had a virtual queue implemented. I was told my application would be processed soon and I should wait another week. I called AGAIN on XX/XX/XXXX after waiting a MONTH with no update and I was told they had no way of letting me know how long my application would take despite my forbarence ending on XX/XX/XXXX. When I asked them if this meant " processing '' meant they could confirm my application had been received but had no way to confirm if it had been even looked at after three months I received no definitive answer. I asked if they could at least extend the forbarence and I was told that would take XXXX - XXXX business days. It is now XX/XX/XXXX and I don't even have confirmation that a forbarence extension request has even been submitted for my account. Aside from the abhorrent handling of what is usually a quick and easy process for me to reapply to an IBR plan I am also beyond frustrated with Mohelas inability to respond to issues in a timely manner.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: FL
Zip: 32703
Submitted Via: Web
Date Sent: 2023-11-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A