Consumer complaint received 2024-06-06
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA (CA)

Re : Fraudulent and Deceptive Practices by XXXX XXXX XXXX XXXX XXXX ( MOHELA ) MOHELA Acct # XXXX Dear Sir/Madame : I am writing this letter because I have been a victim of a fraudulent and deceptive scheme by XXXX XXXX XXXX XXXX XXXXXXXX ( hereafter MOHELA and I am requesting action against the company. The customer services representatives fail to service my loan application to enroll in SAVE repayment plan. The company has reversed attempted payments to ensure my qualification for Direct Loan Upfront Rebate. The servicer will not process applications a timely fashion. These actions will prevent my payments and payment history from counting so that I qualify for forgiveness through Public Service Loan Forgiveness program Background : I submitted a Direct Loan Consolidation Application and Income-Drive Repayment Plan Request on XX/XX/XXXX as well as two Public Service Loan Forgiveness Forms which certified my employment from XXXX and from XXXX ( present ) by qualifying employment. The request to enroll in an Income Drive Repayment Plan was necessary so that my payment history from years of certified employment would be counted in order to qualify for student loan debt forgiveness. My consolidation loan originated with XXXX, a subsidiary of XXXX XXXX XXXX XXXX XXXX on XX/XX/XXXX. According to Customer Service Advocate, XXXX ( ID : XXXX ; First name : XXXX ) my loan was transferred for service to MOHELA on XX/XX/XXXX. I did not receive a notification of the transfer or any loan history documentation 15 days prior to transfer from XXXX. On XX/XX/XXXX I received a statement from Mohela with a monthly payment of {$2.00} and my first upcoming payment due date listed as XX/XX/XXXX. I submitted a payment on that date for {$2.00} ( Payment Confirmation # : XXXX Amount : {$2.00} Scheduled For : XX/XX/XXXX ) and message Mohela on XX/XX/XXXX through its portal to confirm accuracy of the monthly payment amount. I also submitted a request the confirm receipt of my PSLF forms, SAVE repayment plan request, and to ask for loan history and documentation received from XXXX at the time of loan transfer. On XX/XX/XXXX my payment was reversed without explanation. On XX/XX/XXXX I received a document outlining a standard repayment schedule with monthly payment of {$1500.00} and capitalized interest in the total of {$1100.00} which was added to my principle for total debt. The standard repayment plan documented a clause as follows : MOHELAs intentional reversal of this payment prevents me from the credit I am rightfully owed via the rebate as noted above. On XX/XX/XXXX, I received a Student Loan Repayment plan on XX/XX/XXXX dated as XX/XX/XXXX with a monthly payment of {$1500.00}. On XX/XX/XXXX, I received a payment due date notification for XX/XX/XXXX. 

The customer services representatives failed provide accurate information regarding my SAVE repayment application processing. Four CSR abandoned my call including one who claimed she was lead consumer advocate team. The CSR fail to service my loan application to enroll in SAVE repayment. Failure to service my loan fairly in a timely fashion will cause delinquency that will prevent me from PLSF eligibility. These actions will also prevent me from receiving the Direct Loan Upfront Rebate as well as qualification of my payment and payment history that will qualify me for forgiveness. 

On XX/XX/XXXX I called MOHELA to follow up on previous calls and written requests for income driven repayment enrollment in order to lower my payments and so that I qualify for public service loan forgiveness. I spoke to XXXX # : XXXX at XXXX PST on XX/XX/XXXX. I first requested that she had seen that I had requested paperless enrollment. She said she had made this change to my account. This CSR failed to provide accurate information about my loans and processing of my repayment plans. Initially she informed me that MOHELA did not have my SAVE application. I was placed on hold multiple times before she said that she needed 2 minutes to look into my account a bit more. After a long time on hold, I learned CSR XXXX abandoned the call and I was transferred to begin again with XXXX # : XXXX. 

This CSR also initially told me that MOHELA had not received my SAVE app. After listening to the dates that the applications were submitted via studentaid.gov, faxed, and uploaded via MOHELAs website he was able to locate my application but unable to tell me when it began processing. He said enrollment in SAVE would require 90 days from XX/XX/XXXX. I informed him that my applications had been submitted and received and noted as completed on studentaid.gov website on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX. He told me he could see that but that the application had not begun processing. I asked him if my PSLF forms were received and he confirmed this and read me the dates of submission that were received by fax and via upload. 

I told him that according to the borrower bill of rights as a resident in the state of California, processing of application to repayment of my loans must occur in a timely fashion. I requested transfer to a supervisor rather than wait for phone call from a supervisor and was informed that waiting to speak to a supervisor was not an option. The time spent on this call totaled 58 minutes. 

I received a call aXXXX XXXX XXXX  XXXX on XX/XX/XXXX from XXXX # : XXXX who informed she was a supervisor. This supervisor told me initially she was unable to locate my loans. She was difficult to understand and frequently informed me that she didnt know if MOHELA had my loans. She said my IDR plan requests had not been received. When I listed the times and dates and mentioned I had uploaded my SAVE app through the website portal, she told me she was able to see it had been received. She told me it would require 90 days to process. I informed her that I was a resident of California and knew that timely servicing of my loans was required by law and that I had already been waiting 90 days since I submitted formal written request for enrollment in IDR plan. She asked to place me on a 4-5 minute hold many times. I asked her to verify that my loan payment histories were obtained during transfer of my loan to MOHELA. She stated she would formally request this on my behalf as the payment history was not transferred to MOHELA from my prior servicer. I asked her to please send me a message documenting this request on my behalf. After this supervisor informed me that she could not process my SAVE application, I requested that she escalate my complaint to her supervisor. She told me this was not possible and repeatedly insisted I wait on hold while she looked at my account. She repeatedly requested that I agree to a call back but could not schedule a time for this call or tell me a time frame for when I could expect to hear from MOHELA. I asked her to transfer me to her supervisor which she said required approval and that she was emailing a supervisor who was instructing her on how to identify the problem preventing SAVE plan enrollment for repayment. I told her that the loan servicing company of my federal debt was required to have employees who had training necessary to enroll borrowers in repayment plans in a timely fashion. She placed me on hold and while I was on hold she hung up on me and did not call back after 1 hour 38 minutes. I spent 158 minutes on phone with MOHELA and received XXXX help or resolution. 

On XX/XX/XXXX I called MOHELA and spoke to XXXX XXXX who said she was a supervisor. I requested enrollment in SAVE repayment plan. She informed me this would require at least 90 days. I asked to speak to a supervisor or to be connected to the processing team. I asked for contact information to reach the processing team. She refused. I asked her to please document my request to have my SAVE repayment plan processed. She informed me that she would send me documentation that showed that expedited processing of my SAVE plan for repayment would occur. I asked her if my loan payment history was received by XXXX at the time of loan transfer. She confirmed that MOHELA did not have any payment history or documentation from previous servicer. This CSR also acknowledged that the delay in timely processing of my enrollment in the SAVE plan for repayment was allowing my past due debt to increase and thereby growing the debt owed to MOHELA. She also acknowledged that this would allow MOHELA to deny me the loan forgiveness owed through PSLF. She confirmed she understood she was on a recorded line and abandoned the call. 

I am requesting that you take action against MOHELA for these predatory practices that violate borrowers bill of rights in the state of California but also violate the Consent Order that was signed by MOHELA on XX/XX/XXXX in promise to rectify harmful and deceptive loan practices that did not meet requirements of federal and state laws. 

Here is a list of applications, plan requests, and formal complaints, along with their corresponding submission or completion dates : Applications and Plan Requests Income-Driven Repayment ( IDR ) Plan Requests New Applicant SAVE Repayment Plan Completed : XX/XX/XXXX Completed : XX/XX/XXXX Completed : XX/XX/XXXX Completed : XX/XX/XXXX Completed : XX/XX/XXXX Recertifying Plan SAVE Repayment Plan Completed : XX/XX/XXXX Changing Plan SAVE Repayment Plan In Progress : XX/XX/XXXX New Applicant ( Servicer will choose plan ; user provided documentation of income ) Completed : XX/XX/XXXX Completed : XX/XX/XXXX In Review : XX/XX/XXXX In Review : XX/XX/XXXX Direct Consolidation Loan Application In Review : XX/XX/XXXX Closed : XX/XX/XXXX ( Consolidation Standard Repayment Standard Repayment Plan ) PSLF Forms Completed at XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXX/XX/XXXX Completed at XXXX XXXX XXXX XXXX XXXX XX/XX/XXXX Formal Complaints via XXXX : Feedback Case XXXX Pending : Submitted XX/XX/XXXX Feedback Case XXXX Pending : Submitted : XX/XX/XXXX