Consumer complaint received 2023-09-22
Company: MOHELA
State: NC
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:
My student loan payments are not being calculated appropriately based on my last filed income certification which was filed in XXXX - family size XXXX, XXXX {$44000.00}. Taxes have always been filed XXXX and income certifications have always been with a family size of XXXX, except for XXXX when it increased to XXXX for a child. My spouse does not have federal student loans. 

XXXX - I was switched from REPAYE to SAVE in around XX/XX/XXXX and my repayment amount was initially not adjusted and remained at $ XXXX XX/XX/XXXX - I contacted MOHELA for further guidance for my repayment amount remaining the same and was told that they might update the payment amount, or I can recertify now. I did not wish to recertify my income at this time. 

XX/XX/XXXX - My listed monthly payment increased from {$94.00} to {$95.00} XX/XX/XXXX - I contacted MOHELA for clarification on this increase and was told by a representative that all adjustments were final and to expect no further changes. Told that I could recertify with new income information, but declined given guidance by Federal Student Aid that borrowers will not have to recertify their income to be eligible for new SAVE repayment plan and calculations. I was then advised that my payment amount increased to account for interest that had accrued on my account since I last recertified during COVID forbearance. I disagreed with this statement and asked for manager/supervisor review of my account. Told I would receive a call back in ~5 days. 

XX/XX/XXXX - I contacted MOHELA after identifying the likely issue with SAVE repayment plan. Using the last certified income of {$44000.00}, family size of XXXX, the repayment amount is {$95.00}, which is exactly the amount listed as my payment amount. The representative confirmed that my account was recalculated on XX/XX/XXXX and the family size was reset to XXXX. 

XX/XX/XXXX - I contacted MOHELA and as I had not received a call back from manager/supervisor review of my account, nor a statement. Representative advised they could not see if a manager/supervisor was reviewing account but advised to call back later next week. Also advised that I should receive a statement over the weekend. 

XX/XX/XXXX - I contacted MOHELA and requested a manager/supervisor. Outstanding issues : 1 ) Monthly payment amount remains incorrect according to last certified income and family size 2 ) No return call from manager/supervisor for account review 3 ) No receipt of monthly statement - due date of XX/XX/XXXX. 
I was told that all payment amounts are final and refused to review my account further to confirm miscalculation of my family size and assist with getting this addressed. MOHELA rep declined to assist with further investigation/discussion about my incorrect payment amount listed and told me I must certify with new income information. MOHELA rep stated that they do not know why I haven't received a call back from manager/supervisor regarding my request for account review and phone call and declined to help with this issue. MOHELA rep identified that I had not received a statement because in submitting documents in accordance with a prior representative on XX/XX/XXXX, their system put me into an automatic forbearance. I requested that this be removed, and they advised this has been requested. 


-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- The above has been most of my communication with MOHELA to this point in time. I have attempted to request a review of my account, including justification for the increase of my monthly payment amount for the student loans. I have been able to get confirmation with a representative that my family size was reset from XXXX to XXXX, which is likely the main issue, and appears to be consistent with the new monthly payment. 

According to the Department of Education Final Rules and Regulation ( 34 CFR Parts 682 and 685 ) Published XX/XX/XXXX and guidance from the Federal Student Aid, posted date XX/XX/XXXX Electronic announcement ID : XXXX, subject : Loan Servicing Information Availability of Saving on a Valuable Education ( SAVE ) Plan and Updates to the Income-Driven Repayment Plans, borrowers will not have to recertify their income and the new formula for repayment under the SAVE plan will be applied. 

I have attempted several times to get my concerns/issues regarding my payment amount not being appropriately calculated to be addressed through MOHELA without having to update my income. Many of the responses I've received from MOHELA seem to contradict the guidance from the Department of Education. I believe I've allowed ample time and enough attempts to get this resolved myself prior to reaching out to third parties such as CFPB and the Federal Student Aid Ombudsman to get this issue addressed.

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