Consumer complaint received 2024-06-02 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA
State: FL

Complaint narrative:
XXXX must be re-certification every year. My deadline to re-certify was XX/XX/XXXX, however, the President extended all re-certification until XX/XX/XXXX. If you re-certified earlier than this new extension, your account would revert back to the previous payment amount and you would re-certify in XXXX by the new deadline. I contacted Mohela XXXX  times in XXXX, XXXX times in XXXX about when my account would revert back to the previous monthly payment, and they said " it will, but we don't know when '' and advised me to wait. I explained that I'm currently having {$170.00} a month taken out of my checking account per month ( XXXX, XXXX, XXXX, and now XXXX ) but it should revert back to the previous amount of XXXX XXXX/month. The payments that are currently being taken out are ONLY going toward interest. I wouldn't care if the payments at least went towards the principal. It seems Mohela is intentionally doing this to capture more money towards interest payments. One representative on the phone advised me to turn off the auto-pay to avoid the payments being taken out and wait and see what happens. Then, a couple weeks later the accounts as in default. I promptly paid the amount due and set up the autopay again. I emailed again, and I keep getting cut/paste responses saying that accounts will revert back, but no one actually bothers to look into WHY my account has NOT reverted back yet. We are in XXXX now, this has been going on for XXXX months and is ridiculous and there appears to be NO accountability for Mohela. Here is the most commonly cut/paste response I get back from them : " Thank you for contacting MOHELA, Thank you for contacting MOHELA, We apologize for any confusion and inconvenience that may have been caused. Per XXXX  guidance, the deadline to recertify XXXX XXXX XXXX XXXX XXXX plans have been extended to XX/XX/XXXX. The earliest you will have to update your income and family size for your XXXX plan to meet that deadline is XX/XX/XXXX. Before the announcement of this end date, some people received messages starting in XX/XX/XXXX about recertifying for XXXX in XX/XX/XXXX. If you had a XX/XX/XXXX recertification date, you'll stay in XXXX for now, even if you missed the deadline to recertify. If your payment went up, your account will be reverted to its previous monthly amount until your new recertification deadline. If your payment amount went down or did not change, there will be no change to your account. If you have any additional questions, please contact us toll free at XXXX. Our hours are Monday XXXX XXXX to XXXX XXXX., Tuesday and Wednesday XXXX XXXX. to XXXX XXXX, Thursday and Friday XXXX XXXX. to XXXX XXXXXXXX XXXX  Thank you, MOHELA Phone XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX This message, from a debt collector, is an attempt to collect a debt and any information obtained will be used for that purpose. XXXX RESIDENTS : If you are struggling with your student loans, please fill out the form located at XXXX XXXX XXXX XXXX to get help from the Ombudsman 's Student Loan Assistance Unit . XXXX  RESIDENTS : The state Rosenthal Fair Debt Collection Practices Act and the federal Fair Debt Collection Practices Act require that, except under unusual circumstances, collectors may not contact you before XXXX XXXX or after XXXX XXXX They may not harass you by using threats of violence or arrest or by using obscene language. Collectors may not use false or misleading statements or call you at work if they know or have reason to know that you may not receive personal calls at work. For the most part, collectors may not tell another person, other than your attorney or spouse, about your debt. Collectors may contact another person to confirm your location or enforce a judgment. For more information about debt collection activities, you may contact the Federal Trade Commission at XXXX or www.ftc.gov. If you do not want to receive future information of this nature, please unsubscribe or contact customer service at XXXX. 
If you have any additional questions, please contact us toll free at XXXX. Our hours are Monday XXXX XXXX to XXXX XXXX, Tuesday and Wednesday  XXXX XXXX to XXXX XXXX Thursday and Friday XXXX XXXX to XXXX XXXXXXXX XXXX 
Thank you '' Please help, I don't know how else to get this fixed. I need my account to revert back to the previous payment amount and have the payments that I have paid refunded back.

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