Consumer complaint received 2024-02-23 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA
State: MD

Complaint narrative:
I filed a complaint regarding this issue on stating the following : in early XXXX Mohela sent me multiple notifications ( digital and by mail ) stating that my Recertification was due and that to " Avoid missing the recertification deadline of XXXX XXXX, XXXX  '' I needed to Recertify or my payment would go up from {$410.00} to {$1100.00} and I would jeopardize my PSLF and loan repayment progress ( attached ) These threats were reinforced by banners on their webpage and constant reminders throughout the site. Out of fear of risking my progress, I recertified as instructed in XX/XX/XXXX. I contacted Mohela on XX/XX/XXXX when I was informed that I should not have been required to recertify. No one responded via phone and I sent a message and was told I would be contacted in 1-2 business days ( message attached ). No one contacted me but instead on XX/XX/XXXX I received a message that MOHELA Has Placed an Administrative Forbearance on my Account ( attached ). I followed up with Mohela the same day because I was concerned this forbearance would impact my PSLF progress. Once again I heard nothing. Now on XX/XX/XXXX, I received a notification that my new Monthly Payment Amount : {$730.00}. The language in the annual recertification is particularly concerning because when REPAYE Plan ( which I was on ) became the SAVE plan, I received a notice ( attached ) which stated : Annual Recertification You won't be required to recertify before payments restart in XX/XX/XXXX, and the earliest you could be required to recertify is six months after the payment pause ends. If your recertification date falls between now and six months after the pause ends, it will be pushed out by one year. This section in the new letter now states ; Annual Recertification The earliest you could be required to recertify is six months after XX/XX/XXXX, when the payment pause ended. If your recertification date falls between now and XX/XX/XXXX, it will be pushed out by one year. I believe MOHELA is deliberately misleading consumers to recertify earlier than required and threatening higher payments and risking loan forgiveness for failing to do so. Furthermore, when consumers ask for assistance, guidance or corrections, MOHELA becomes unresponsive or claims they can not assist. 


Now three agents confirmed on the phone that this issue would be resolved because my recertification date is XXXX AND being placed on forbearance because MOHELA needed time to correct this, The company made up a new date in XXXX. They replied to my complaint saying me recertification date is actually XX/XX/XXXX. Which does not match the date they wrote in their letter Dated XX/XX/XXXX. This is 100 % fiduciary negligence and they are simply making up dates to cover their mistakes after they already acknowledged that they were incorrect!!

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