Consumer complaint received 2024-01-02
Company: MOHELA
State: MD
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
First, on XX/XX/XXXX I submitted a request on the Mohela website through my account to change my payment plan from XXXX XXXX  XXXX. The XXXX amount was too much per month in the long term, and I wanted to move into the XXXX repayment plan. As of XX/XX/XXXX, XXXX full months after I submitted my request to XXXX my payment plan, my account was still showing under the Graduated repayment plan. 

Second, Mohela did not give me the proper notice that my loans were due and once they did, had the incorrect payment plan and payment amount. I received my first payment statement via email on XX/XX/XXXX which was about XXXX days to notify me of my first payment being due on XX/XX/XXXX. The payment amount was still showing as the XXXX amount, not the XXXX repayment plan, which I had requested be changed back on XX/XX/XXXX. 

Third, on XX/XX/XXXX, my loan was placed into XXXX XXXX with no explanation of why, no date as to when the payments may resume or any type of information on what was going on with my loan. I was notified of this XXXX via email, and it simply stated that my loan was placed into XXXX XXXX, no other information was provided. I received another email on XX/XX/XXXX, stating they were processing my change in repayment plan and my next bill would be due in XXXX. Which is it? That I have a bill due or that I was placed into administrative forbearance? How can you tell me you are placing me in XXXX in XXXX email and then turn around and send me a second email and say my bill is due? And, calling them is a nightmare. Hours to hold on the phone to wait to talk to someone. 

As of XX/XX/XXXX my loan is back under repayment, and it shows under a " XXXX '' plan, I have no idea what that means. I chose the XXXX repayment plan. I have never heard of a XXXX plan. The amount shown is not what the XXXX repayment amount was showing when I put the request in to change my payment plan in XX/XX/XXXX and there was no explanation provided to me for why they put me into this different plan under a different amount. Why was my payment plan changed XXXX months after I requested it? And why was it changed to a plan that I have no knowledge of the terms and did not agree to? How can they change my plan to something that I was not notified of or explained how it would impact me? 

The handling of my student loan return to repayment has been disorganized, confusing and frustrating. Mohela has not provided me with adequate information on the status of my loans, and they took over XXXX months to begin to process a change in repayment plan for my loans. They put me in forbearance with no explanation. They have not explained how they came up with the payment amount that I have. How am I supposed to plan financially to repay these loans when due dates and amounts keep changing and the terms of the plan Mohela placed me in are unclear? 

I have XXXX confidence that my payment amount is correct and that Mohela is processing my loans in a correct and timely manner. I am not paying on a loan that has been handled this poorly and that I have no clarity or confidence that I am being setup to successfully pay this loan off. When I chose the XXXX XXXX plan on XX/XX/XXXX, my payment was supposed to be {XXXX per month. Now I am in a " XXXX '' repayment plan and my payment is XXXX per month, which is not correct and not what I agreed to. 

Please hold them accountable for messing up my loans to the point I have no idea what payment plan I am in, why my monthly payment is what it is, how long this will take me to pay off, etc. I have attached emails and screenshots of my account on Mohela to validate my account of what has happened.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation