Consumer complaint received 2019-09-12
Company: MOHELA
State: FL
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:
MOHELA lied to and misled me so that they could benefit from a substantial interest re-capitlization that occurred during my XXXX re-certification period. 

MOHELA explicitly assured me, BOTH in writing, and verbally, that I had until XX/XX/XXXX to finish my XXXX re-certification- which I DID do. And yet, they still recapitalized over {$40000.00} in interest to benefit themselves and harm me. 

In addition, they applied a forbearance I did NOT request, and when I called to terminate it, [ MOHELA REQUIRED a call instead of an email, no doubt to obscure their unfair practices ] thy AGAIN assured me that no interest recapitalization would occur if I paid them then the full {$1200.00} payment for the month.

In addition, it was like pulling teeth with them to find it IF the recpaitlization would or would not occur- all the literature said MAY occur, until I finally got someone to admit that NO, it actually WOULD occur UNLESS I re-certified BY XX/XX/XXXX! ( which I did ). Here is some of our correspondence : On XX/XX/XXXX : " Your Question : Hello, I am writing about my IBR RE-CERTIFICATION. I just completed the process on the StudentLoans.gov, BUT, I have to print and mail in documentation. My re-certification deadline is XX/XX/XXXX. I wanted to make sure that MOHELA knew I completed the re-certification within the time frame, AND, I was wondering what the deadline is now to mail in the forms? I was also curious as to when the NEW PAYMENT would be ascertained and billed? Thank You, XXXX XXXX MOHELA 's Response : Thank you for contacting MOHELA, Please provide us with your documentation before your XX/XX/XXXX due date. If you do not recertify your repayment plan, your new installment will be {$1200.00} due XX/XX/XXXX. 

If we recieve your application before your XX/XX/XXXX due date, your new installment should begin for your XX/XX/XXXX due date .... '' [ AS YOU CAN SEE THE ANSWER TO MY QUESTION WAS XX/XX/XXXX, " PLEASE PROVIDE US WITH YOUR DOCUMENTATION BEFORE YOUR XX/XX/XXXX DUE DATE '' ] XX/XX/XXXX " Your Question : I see that Mohela has processed my XXXX re-certification ... but I also see a Forbearance for XXXX. I didn't request forbearance and I don't want to be in Forbearance if the interest is going to be re-capitalized. The documentation all says that it MAY be re-capitalized. Can you please confirm or deny whether or not the interest will or will not be recapitalized? If YES, recapitalized, please remove the Forbearance and I will pay the new amount in XXXX. If no, not recapitalized, then OK, and my new payment amount may be withdrawn automatically next month in XXXX. THANK YOU. 

MOHELA 's Response : Thank you for contacting MOHELA, Interest does capitalize when an account leaves a forbearance. To request the removal of your forbearance, please call and speak with a Student Loan Counselor. Please call toll free at  XXXX. Monday-Thursday XXXX XXXX.to XXXX XXXX., Friday XXXX XXXX. to XXXX XXXX. CT. 

Thank You, MOHELA '' [ TO CONCLUDE, THEY PROVIDED AN XX/XX/XXXX DUE DATE " YOUR XX/XX/XXXX DUE DATE '' AND THEN WENT AHEAD AND RECAPILIZED MY INTEREST ANYWAY IN A MOST UNFAIR AND DECEPTIVE MANNER. HAD THEY SIMPLY SAID MY DUE DATE WAS XX/XX/XXXX, I WOULD HAVE COMPLETED THE PROCESS BY XXXX NATURALLY, AS I HAD BEGUN TIMELY IN XXXX! ]

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