Consumer complaint received 2024-01-04
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA (TX)

I AM A MILITARY MEMBER AND UNDER PUBLIC SERVICE LOAN FORGIVENESS I am writing to file a formal complaint against my student loan servicer, MOHELA XXXX XXXX XXXX XXXX XXXX XXXX ), due to ongoing issues and mismanagement of my student loan account. As a borrower, I have faced significant challenges and setbacks due to their handling of my account, which I believe violates my rights under the terms of my loan agreement and potentially under federal student loan laws. 

Account Mismanagement Details : I have no idea if I am in an administrative forbearance as that has not been communicated. Also, I have applied multiple times for XXXX  plan with no confirmations. 

Attempts to Resolve the Issue : I have tried calling and can not get through. No one can get through. 

Impact on You : I am under great stress because I have no idea what is going on with my loans. 

Violation of Rights : Possible violations : Right to Accurate Account Information : Borrowers have the right to receive accurate and timely information about their loan balance, interest rates, payment history, and any fees charged. If MOHELA provides incorrect or misleading information, or fails to update your account properly, this could be a violation. 

Right to Fair Treatment : This includes the right to be treated fairly regardless of race, gender, religion, national origin, age, disability status, or income. Any form of discrimination in servicing loans is a violation. 

Right to Prompt and Efficient Customer Service : Borrowers have the right to receive prompt and efficient service when they contact their loan servicer. If MOHELA consistently fails to respond to your inquiries or provides inadequate service, this could be considered a violation. 

Right to Proper Application of Payments : Payments should be applied to your account correctly, first to late fees and charges, then to interest, and finally to the principal. If MOHELA is applying payments incorrectly, this is a violation. 

Right to Error Resolution : If you believe there is an error on your account, you have the right to request that the servicer correct it. This includes misapplied payments, incorrect interest calculations, or erroneous charges. The servicer is obligated to respond to your concerns and correct any errors in a timely manner. 

Right to Information about Repayment Plans and Loan Forgiveness Programs : Borrowers are entitled to comprehensive information about different repayment options and loan forgiveness programs. If MOHELA fails to provide this information or misinforms you about your eligibility for such programs, this could be a violation. 

Right to Protection from Automatic Default : In the case of co-signed loans, some loan agreements state that the loan can be placed in default if the co-signer declares bankruptcy or dies. Newer regulations provide some protection against automatic default in these situations, and if MOHELA places your loan in default under these circumstances, it could be a violation. 
Right to a Detailed Monthly Statement : Borrowers are entitled to receive detailed monthly statements that include information on how payments were applied, the remaining balance, the interest rate, and any fees incurred.

Right to Informed Consent for Payment Allocation : If you have multiple loans managed by MOHELA, you have the right to specify how extra payments are allocated across these loans. If MOHELA reallocates payments without your consent, this might be a violation. 

Resolution Sought : I want my account handled correctly. I want to know that interest is being cleared off my account and I want a counter showing how much longer I have until my loans are forgiven under XXXX. I also want my XXXX plan application to be processed in a timely manner. It has not been done. 

I trust that the Consumer Financial Protection Bureau will take my complaint seriously and assist in resolving these issues with MOHELA. The mismanagement of my student loan has had a significant impact on my financial health and well-being, and I seek your intervention to ensure fair and legal treatment as per the regulatory standards governing student loan servicers.