Date Received: 2023-09-11
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: My Student original loan amount without interest was less than {$46000.00} at the end of XXXX. Mohela in taking over as the servicer of the loan is now using the principal loan and the interest added to the principal prior to COVID and now is adding additional interest to their new principal amounts which include the principal amount is {$46000.00}, interest payments, does not include any payments made to XXXX or to XXXX XXXX. This letter received by your agency has not been received by me. Its interesting that Mohela only states what is correct. The totals for original loan amounts is not correct and my knowledge of loans is that principal amounts of a loan can not be changed once signatures are made unless both parties agreed to it. Mohela has taken that right from me and is being allowed to charge whatever and how much they want to. Right now it is my perception that the dispute with Mohela is not being taken seriously and that because my race is XXXX XXXX XXXX XXXX XXXX XXXX XXXX, and can not afford to challenge Mohela in a court of law, that I need to accept this erroneous information and get over it.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: OH
Zip: 445XX
Submitted Via: Web
Date Sent: 2023-09-11
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-10
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: Information sent to Mohela with no response You haven't answered the questions that were asked. You have breached your contract with the Department of Education. Title 15 Chapter 41 Issues 1 ) ~~1692g. Validation of debts You were asked to validate all debts and failed. You provided a note about a consolidation but you are required to validate those debts before attempting consolidation which was predatory as you could ONLY be approved for PSLF with a consolidation. 2 ) ~~1692e. False or misleading representations You listed an incorrect payment schedule based on a hypothetical tier system that does not exist The tier system is not in any legal context you made that number up. 3 ) ~~1681i. Procedure in case of disputed accuracy You did not fix incorrect information submitted to CRAs 41 U.S. Code ~~ 6503 issues Still incorrect on All CRAs 1 ) You breached the contract with DOE and didn't report to DOE or the contracting official as required FOIA request show XXXX didn't report information adequately and you used this inaccurate information in your reporting 2 ) You breached the contract with me concerning fair practice, communication, validation of debt, PSLF , negligence gross and and standard by providing false information that is part of a contractual agreement Fair Debt Collection Practices Act You attempted to collect debts either forgiven/ with incorrect values/ false number at multiple points in time. 1 ) XXXX XXXX 2 ) XXXX A and B This does not include state and local jurisdictional issues. I suggest you meet with the DOE and get your act together promptly As of XX/XX/ you still have Inaccurate information on your website/ written mail/ PSLF calculations/ and reported inaccurate information to CRAs this amount to negligence and is now gross after months of you doing nothing.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: GA
Zip: 31093
Submitted Via: Web
Date Sent: 2023-09-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-10
Issue: Struggling to repay your loan
Subissue: Problem with your payment plan
Consumer Complaint: I would like to cancel re certifying my income as recertifying isnt due until XX/XX/XXXX. I would like to remain on my old income driven plan of XXXX with a monthly payment of {$240.00} based on my income in XXXX. MOHELA has already updated my plan to SAVE after re certifying income but I would like to CANCEL and go back to PAYE per my old salary. I was lead to believe I had toner certify income in XX/XX/XXXX before payments re started in XX/XX/XXXX 2023
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NJ
Zip: 07302
Submitted Via: Web
Date Sent: 2023-09-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-10
Issue: Struggling to repay your loan
Subissue: Problem with forgiveness, cancellation, or discharge
Consumer Complaint: I am missing 3 years of payments to count towards my PSLF request. If I had those 3 years I would fall into forgiveness. I am missing all of XXXX, XXXX, XXXX and some of XXXX. I was employed at a non profit during that time, I was not in school, and I was paying on my loans.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: SC
Zip: 29456
Submitted Via: Web
Date Sent: 2023-09-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-10
Issue: Dealing with your lender or servicer
Subissue: Don't agree with the fees charged
Consumer Complaint: Since XXXX I have been making payments towards my federal student loan debt. Servicing of my federal student loans was transferred to the Missouri Higher Education Loan Authority ( MOHELA ) somewhere between eight to ten years ago. When the initial servicing transfer occurred, I had nine separate loans. I have made significant sacrifices to pay down my principal balances as much as I could during the pandemic forbearance, successfully paying off two of my loans ( Loan ID # s XXXX and XXXX ). I submitted a change in terms request to change to a standard repayment schedule, which was effective as of XX/XX/XXXX. As of the resumption of accrual of interest on XX/XX/XXXX, my principal loan balance for the seven loans currently serviced by MOHELA was {$41000.00}. After enrolling in the standard repayment option, I noticed a severe and predatory discrepancy in MOHELAs calculation of the payments required to satisfy my loan balances. At first glance, the monthly payments for each loan appeared much higher than they should be. To confirm my suspicions, I tested the Annual Percentage Rate ( APR ) for each loan using the Federal Financial Institutions Examination Councils ( FFIECs ) APR calculator. Much to my dismay, the calculations showed a substantial discrepancy in the interest assessed over the life of the loans between what MOHELA was charging and what the interest should have been on a standard fully amortizing repayment schedule. Based on my calculations, if I repaid the loans under MOHELAs standard payment terms, I would wind up paying an additional {$9600.00} in interest. The calculated APRs based on MOHELAs payment streams are substantially higher than the interest rate, ranging from 8.504 % up to 19.553 %. Interest has always accrued at a higher rate than I could repay the debt. For years I stressed and endured financial hardship trying to keep up with my student loan payments. I am astonished and disgusted at MOHELAs illegal and predatory assessment of interest and I initially voiced my concerns and inquiry to MOHELA on XX/XX/XXXX. As of the date of this letter, I have not received any response from MOHELA. As of the date of this complaint, XX/XX/XXXX, I have now refinanced five of my seven existing loans through XXXX which will be paid off shortly. In the event the Agencies receiving the complaint and/or MOHELA determine that MOHELA has been inaccurately and illegally accruing interest over the life of my nine loans, I request a full refund of all overpayment of interest. After manually recalculating MOHELAs calculated payments based on the contractual interest rate, I feel that a large part of the pain, suffering, and financial hardship I have experienced over the life of my loans is due in part to MOHELAs miscalculations. I sincerely hope that the Agencies I have contacted perform a detailed assessment of MOHELAs interest and payment calculations to determine if millions of additional borrowers have been impacted by these illegal and predatory servicing practices.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: CA
Zip: 95973
Submitted Via: Web
Date Sent: 2023-09-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-10
Issue: Struggling to repay your loan
Subissue: Problem with your payment plan
Consumer Complaint: I requested Mohela to put me on a payment plan with the lowest monthly payment. That would have been the Repaye ( Save ) plan. I qualify for a {$0.00} monthly payment. My servicer ( Mohela ) changed me from the Save plan to the Paye plan that requires a monthly payment of {$41.00}. They do not have my best interest in mind. I have reapplied for the Save plan but I am afraid it will not be processed in time for me to take advantage of the {$0.00} monthly payment it offers. I want this fixed. I want Mohela to have my best interest in mind, and put me on the Save plan which offers the lowest monthly payment. Thank you.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NC
Zip: 27107
Submitted Via: Web
Date Sent: 2023-09-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-10
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: On XX/XX/2023 I paid off my student loan balance through Mohela, my absolutely incompetent servicer. I have the documentation of the payment confirmation, the withdrawal from my bank account and the following XXXX balance from the Department of Education. Following my payoff, the department of Ed gave the money back. I have not been abler to find out why because they have not responded. If it's for forgiveness, I would like to know. However, I believe it must be for continuing gaining interest. Soon after reaching out to the department of Ed to submit a complaint about Mohela, they then brought my balance back from 0 to the original amount. Nowhere in this was I ever contacted. My servicer then began charging interest, now I have to pay at this time {$11.00} more but it will continue to accrue simply because no one accepted my payment and no one is responding. At repayment, the servicer system said I would be overpaing due being in auto debit, which I am definitely not in. They are a new servicer! It switched during the pandemic. they know this because on their website dashboard, it says a warning about lowering my payments if I choose to sign up for debit. This is all evidence that they can not handle the crucial data management required for loan servicing, who knows what else they have mishandled leading to incorrect payments for myself and others.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: IL
Zip: 60629
Submitted Via: Web
Date Sent: 2023-09-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-09
Issue: Dealing with your lender or servicer
Subissue: Trouble with how payments are being handled
Consumer Complaint: I applied for forgiveness under the limited waiver or to get an updated qualifying payment count on XX/XX/XXXX and there has been no update. I have not been able to contact a live agent despite multiple, multiple attempts, and my payment counts have not been updated. I have also lost my job and need a recalculation of monthly payments and can't even get anyone to help me with that. My IDR application has also been processing for almost a year.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: OH
Zip: 454XX
Submitted Via: Web
Date Sent: 2023-09-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-09
Issue: Incorrect information on your report
Subissue: Account status incorrect
Consumer Complaint: On XX/XX/XXXX, MOHELA updated my bankruptcy - discharge of debtors from pending to approved. As you will see in 1 of 3 of the included attachments, my subsidized and unsubsidized Federal Student Loans ( FedLoan ) aka Department of Education is included in my XXXX XXXX XXXX bankruptcy on the certificate page. Federal Loan transferred eligible loans to MOHELA around the summer time in XXXX. MOHELA, XXXX, and XXXX all have been habitual violators of closing, reopening, and changing the status of my student loans even though all agencies have proof of my XXXX bankruptcy discharge documentation. XXXX, currently, is the only agency that has my student loan status as included in bankruptcy and closed as a status. These status changes has cause substantial and adverse financial hardships with the approval of credit applications as well as the ability to maintain a good consumer credit score rating.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: GA
Zip: XXXXX
Submitted Via: Web
Date Sent: 2023-09-09
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-09-10
Issue: Dealing with your lender or servicer
Subissue: Received bad information about your loan
Consumer Complaint: I contacted the current loan servicer Mohela after my loan was transferred from XXXX in XXXX. I contacted the new servicer to make sure payment would be made to the correct account. During the course of the conversation I was told a different payment amount would be assigned. The told me the change was due to the payment program changing from ( for which I applied and was enrolled in REPAY ) REPAY and switched to SAVE. My payment would be significantly higher than the amount previously assigned it was going to change from {$280.00} ( more or less ) to {$620.00}. At that point I complained to the customer service representative. They said that they would readjust the amount to the original amount of {$280.00}. I asked them to put it in writing and send me something to confirm this. They said they would. I never received anything XX/XX/2023. The correspondence I received told me that my payment was not processed by my bank so I needed to correct the bank account information and submit payment. When I logged into the account the amount. The payment amount was over {$4000.00}. The new amount was extremely discrepant, and I can not afford that amount. I am trying to straighten this situation out but Mohela is not giving me the correct amounts based on the programs I am enrolled in.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: TX
Zip: 77004
Submitted Via: Web
Date Sent: 2023-09-10
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A