Consumer complaint received 2024-01-02
Company: MOHELA
State: ID
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
Recently as of XX/XX/XXXX I received this email and in the email on their page they have dated this XX/XX/XXXX Important Updates About Your Student Loans Our records indicate that we sent your XXXX billing statement less than XXXX  days prior to your payment due date. Because of this, your student loan account has been updated to ensure your successful return to student loan payments. You are not required to do anything to benefit from these updates to your account. 
Your account has been placed into an administrative forbearance ( meaning no payment is required ) for payments due between XX/XX/XXXX, through XX/XX/XXXX. You are not required to make a payment until XX/XX/XXXX and your account will not be considered delinquent. Be on the lookout for your next billing statement. 
o We will report your updated loan status to the nationwide Consumer Reporting Agencies.

o You may request to end this administrative forbearance by contacting us by mail, fax, or calling us at XXXX. 
o Please note, your forbearance may not go through the end of XXXX if there were other changes that have occurred on your account. This could be a result of activities such as application processing, your request to have the forbearance removed, or other actions. Please closely review your billing statements and notifications for your latest account status. 
The months of XXXX through XX/XX/XXXX will count toward income-driven repayment forgiveness and XXXX XXXX XXXX XXXX XXXX assuming all other requirements are met. 
Your interest rate is being set to 0 % from XX/XX/XXXX, through XX/XX/XXXX, which means no interest accrues during this period. 
If you made any payment ( s ) between XX/XX/XXXX, and XX/XX/XXXX, they will count toward your future payment ( s ).

There are some important things to know about your payments : o You may also, instead, contact us to request a refund for any payment made during this time.

o If you are enrolled in Auto Debit, monthly payments will continue to be withdrawn for your regular amount due each month plus any additional recurring amount you have requested. This will occur even after any payments you made for a due date in XXXX through XXXX have been applied toward your future payment ( s ).

o If you choose to make payments while your loans are at the 0 % interest rate, the full amount of your payments will be applied first to any interest that accrued prior to XX/XX/XXXX, if applicable, then to your principal balance. 
If you had an insufficient fund ( NSF ) fee charged because of a payment withdrawal between XX/XX/XXXX, and XX/XX/XXXX, you may request that your bank reverse the fees that resulted from the transaction.

If the bank will not reverse the charges, you may contact us to request a refund of the NSF fee. To request this refund, please provide a document with the following information : Your request to have the NSF fee refunded, your name, your bank information, and documentation that the withdrawal caused the NSF fee. You may submit your request by mail, fax, or uploading on mohela.com. 
All of your comments are regarding the XXXX billing Statement What does this mean for the XXXX XXXX payments and ongoing?

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