Consumer complaint received 2024-05-02 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: CA

Complaint narrative:
My account has been placed in administrative forbearance twice due to errors MOHELA made. I am enrolled in PSLF and I am worried my payments won't count toward forgiveness under PSLF. 

Below are the messages summarizing the problems dealing with MOHELA to resolve the issues. I still have not received a refund for the error they made between XXXX ( I requested the refund in XXXX ). 

I spoke to a supervisor on XX/XX/XXXX, who made it exceedingly difficult to come to a resolution about an overcharge. She tried to justify the charge for about 30 minutes while I was at work ( as a teacher ), then finally admitted that " the system '' processed the payment before my IDR was processed, even though I submitted my IDR application well within the deadline. She claimed she could not fix it and offered no solutions. I have since cancelled auto-debit because MOHELA failed to address the problem in a timely manner. 

XX/XX/XXXX XXXX XXXX  Body : Your Question : I received a message on XX/XX/XXXX that there was a change to my auto debit and that my loans would be paid ahead in the amount of {$420.00}. I did not make this change and I can not afford this payment. Under no repayment plan I have ever been enrolled in was I ever expected to pay this amount of money. I should be paying a monthly payment of {$100.00} under REPAYE, or {$120.00} under SAVE. In addition, I was supposed to receive a refund of payments I made during a period of administrative forbearance in XXXX due to an error Mohela made . I still have not received a refund for those payments. 

MOHELA 's Response : Thank you for contacting MOHELA, We apologize for any inconvenience this may have caused. In order to provide exemplary service, we want to make sure that we are addressing your questions and concerns accurately. We need additional information as it pertains to responding to your question. Please call 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 XXXX CT. 

XX/XX/XXXX XXXX XXXX  Body : Your Question : Hello, I am not available to be on hold for hours at that time. Can I please provide the information via message? 

MOHELA 's Response : Thank you for contacting MOHELA, Our apologies for any frustration and/or confusion this may have caused you. 

In order to provide exemplary service, we want to make sure that we are addressing your questions and concerns accurately. We need additional information as it pertains to responding to your question. Please call 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 XXXX CT. 

Please be advised that we received guidance from Federal Student Aid ( FSA ) to apply a Remediation Forbearance on your account through XX/XX/XXXX. While on this Forbearance, no payments will be required, and your interest rates will be reduced to 0 % effective XX/XX/XXXX through the end of this Forbearance. If any interest accrued from XX/XX/XXXX, this interest will be removed. 

The months from XXXX through XX/XX/XXXX will count toward income-driven repayment forgiveness and Public Service Loan Forgiveness , assuming all other requirements are met. If a payment has been made for the months from XXXX through XXXX, you may request a refund for those payments. 

Your patience while these adjustments are being applied is greatly appreciated. 

Secure messaging is available for our MOHELA borrowers as another option to communicate with us. However, certain questions and/or responses/processing steps, etc may not be available to answered/responded to via secure message. Therefore, we would recommend calling in and speaking with a Customer Service Representative. 

Please be advised an Income Driven Repayment Plan ( IDR ) approval letter was sent on XX/XX/XXXX with the details of your new repayment plan. For your convenience, we have resent it via secure message. Your new IDR repayment plan is SAVE, for 12 months, a monthly installment of {$120.00}, and a scheduled begin date for this plan of XX/XX/XXXX. 

Our records indicate that youre currently on the Income Driven Repayment ( IDR ) Plan/SAVE for a monthly installment amount of {$120.00}. Your next payment is due by XX/XX/XXXX in the amount of {$420.00}. 

Please be advised your loans are enrolled in Auto Debit. If you would like to cancel your auto debit, you can go online at mohela.com and cancel or suspend by selecting Auto Debit under the Payment Assistance category and/or call in and speak with a Customer Service Representative . 

Thank you, MOHELA XX/XX/XXXX XXXX XXXX  Body : Your Question : I spoke to a representative on the phone on Friday the XXXX about the unauthorized charge of {$420.00}. She claimed that the issue was fixed and I would not be charged. I also mentioned that the automated system said I had made a recent payment of {$56.00}, which is not accurate. I have never made a payment of this amount. This morning, a pending charge of {$420.00} was made to my account. I spoke to another representative today about the charge. She encouraged me to contact my bank to stop the charge. She placed my account in forbearance until XX/XX/XXXX and removed the delinquency from my account. I don '' t know why my account was ever considered delinquent - I have made every payment on the XXXX through since I entered repayment. She said that the automated system is " not accurate. '' I am now filing a claim to dispute the unauthorized charge of {$420.00} with my bank. 

MOHELA 's Response : Thank you for contacting MOHELA, We apologize for any inconvenience this may have caused. You are able to suspend or cancel your participation in the Auto Debit program on MOHELA.com. Please select Payments at the top of this page. Then, select Auto Debit. On the Auto Debit information page, you will be able to access a variety of options to help you manage your Auto Debit payments. 

If you would like to suspend your next Auto Debit payment, choose the radio button labeled suspend Auto Debit payment. If you would like to cancel your participation in the Auto Debit program, chose the radio button labelled 'cancel my current Auto Debit enrollment. ' All requests to cancel or suspend your Auto Debit must be received at least 3 business days prior to the next scheduled withdrawal. 

Once we receive your request, please allow 2-3 business days for your account to be updated. 

If you have any additional questions, please contact us 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 XX/XX/XXXX XXXX XXXX  Body : Your Question : I spoke to a supervisor today, who called me at XXXX PST. She at first told me that I had not submitted my IDR Recertification on time, so the unauthorized charge of {$420.00} was accurate. This was contrary to what the first two representatives told me, who both said that the charge was an error. I clarified to her that I submitted my IDR Recertification by the deadline of XXXX  XXXX, XXXX. ( In fact, I submitted it on XX/XX/XXXX ). I requested that she call me back at XXXX PST because I am a teacher and she called in the middle of my workday. She said that was not possible, and that I would have to call the main phone number again. After putting me on hold on and off for about 25 minutes, continuing to try to justify the unauthorized charge, she finally admitted that the error was created because the bill was generated before I submitted my IDR Recertification ( WITHIN THE DEADLINE ). I asked her how she was going to fix the error, and she provided no answer or solution. She said that there was no way to fix the error on her end, or another person I could talk to. I then mentioned that the representative I spoke to yesterday had placed my account on forbearance until XX/XX/XXXX and I asked if that were true. She confirmed that a request had been submitted to put my account in forbearance. She confirmed that I would not face any penalties for not paying the unauthorized {$420.00} charge.

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