Consumer complaint received 2024-04-17 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:
Hello, I hope all is well. I have a big issue with Mohela. I've been contacting Mohela since XX/XX/XXXX about my payment issue. Every time I use autopay, it only affects two loans, loans 13 and 15. However, since XXXX, I have been begging MOHELA to target it for all loans. I've called Mohela at least three times a month regarding this issue. Yet, Mohela has been unable to provide a response as to why this keeps happening and whether the issue can be fixed. 

As an attempt to mitigate the damages, MOHELA told me to call every time I make a payment to give payment instructions to that payment to affect all loans. However, not only is this very time-consuming, but doing this method does not apply to all of my outstanding interests. 

My concern is that my payments only target two loans, so I can not pay the outstanding interest owed for the following 13 loans with the discounted autopay. Additionally, this affects my SAVE Program eligibility as I only pay two loans under the program rather than the 15. In turn, this caused only two loans to be subsidized.

Please help me ; I am at my wit 's end and I am concerned I am missing out on the SAVE program because of MOHELA 'S negligence. 

I've called multiple times a month and sent mail via secure message on XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. 

Below, please see what I wrote to MOHELA as PAYMENT INSTRUCTIONS and how MOHELA responded : What I sent Mohela : To whom it may concern, For some reason, when I used to pay, my automatic payments targeted loans 1 through 15. However, since XX/XX/XXXX, my automatic payments have targeted loans 13 and 15. I NEVER authorized this change. Now, when I automatically pay, it only affects both loans, and I can not pay towards the outstanding interest of the remainder of the loans. Even when I do not pay automatically but rather pay manually, it still only targets loans 1 through 15. Essentially, I CAN NOT PAY FOR MY OUTSTANDING INTEREST FOR MY OTHER LOANS. I want my minimum payment to affect the interest on loans 1 through 15. I am deeply concerned about how this will affect the SAVE program as it only targets two loans rather than the interest of all 1 through 15 loans. Unfortunately, when this letter is received and applied, it won '' t be put into effect until months after I have started my Save program. Suppose I can not pay the previous outstanding interest because of MOHELA~~s failure to allow me to do so. I will file a formal Complaint as I have made a second {$1000.00} payment in an attempt to pay off the outstanding interest. My request is to ensure my automatic payment applies to loans 1 through 15. Please fix this as soon as possible.

Respectfully, ___________. 

MOHELA 's Response : Thank you for contacting MOHELA, We apologize for any confusion and inconvenience that may have been caused. In order to provide exemplary service, we want to make sure that we are addressing your questions and concerns accurately. Due to the nature of the Public Service Loan Forgiveness ( PSLF ) inquiry, we need you to speak with a Public Service Loan Forgiveness ( PSLF ) Specialist. Please call toll free at XXXX. Our hours are Monday XXXX XXXX XXXX XXXX XXXX, Tuesday and Wednesday XXXX XXXX XXXX XXXX XXXX, Thursday and Friday XXXX XXXX XXXX XXXX XXXX CT. 

Thank you, MOHELA Phone XXXX Fax XXXX TDD Dial XXXX XXXX XXXX, XXXX T-W, and XXXX TR-F. CT. 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. 

California 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 XXXX XXXX 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. 

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