Consumer complaint received 2024-01-04 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:
Tonight, XX/XX/XXXX at XXXXXXXX XXXX., I received an email from Mohela alerting me that I was past due on my student loan payment ( attached ). This is the first time I was notified that I even had a payment due let alone that I was now past due. 

I logged into my Mohela account to make sure I did not miss anything. I looked at the loan information for both loans, and they both said I was past due and that my next payment is expected on XX/XX/XXXX, in the amount of {$260.00} ( {$130.00} for the current payment and {$130.00} past due ). I went to my messages in the website and saw a letter from Mohela telling me I was past due. The letter was dated XX/XX/XXXX. Mohela waited over 24 hours to even send me the email to let me know my account was passed due. What kind of business practice is that? 

Mohela never notified me of my SAVE application being approved ( applied in XX/XX/XXXX ), nor did they notify me that I would be taken off the administrative forbearance they put me on to process my SAVE application in XXXX ( CFPB complaint filed ), nor did they notify me of payment due on XX/XX/XXXX. In fact, on Mohela 's website, it states they are required to notify me 21 days before my bill is due. This never happened. 

As you can see by the documents I attached, Mohela hasn't sent me any letters or emails about a payment being due. The notification for payment due should have been around XX/XX/XXXX, and in my messages for my account, there is nothing. I logged in just before the end of the year to see if there was any update on a payment date or information. There was nothing, confirming to me that Mohela did not update my account. 

Mohela has violated my consumer rights by failing to notify me of payment due and then emailing me at XXXXXXXX XXXX ( after business hours ) to let me know I am now LATE, after placing me on a forbearance without even telling me why. Plus, I can't call anyone at this business because wait times are four hours each time only to get an agent who can't answer any basic questions. Mohela can not legally report it late to the credit bureaus due to the Dept of Ed 's on-ramp policy for the COVID pause so if I see a notification that this occurred, I will be back to file one again. 

This is an unacceptable practice especially if they are supposed to be the " experts '' in servicing of federal student loans. The company can not even complete the correct tasks of bill notification or responding to complaints with the right information. Mohela should be held accountable and heavily fined for their inability to do their job correctly and efficiently. The sad part is my tax money is being sent to pay this company. They have exposed how predatory and corrupt the entire student loan system is. Mohela is nothing but a for-profit entity gobbling up free tax money and providing lousy services to the citizens. It's time to cancel ALL FEDERAL STUDENT LOAN DEBT.

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