Consumer complaint received 2024-12-13 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Need information about your loan balance or loan terms
Company: MOHELA
State: MD

Complaint narrative:
My issue is with my student loans housed at MOHELA. I originally paid off two loans in XXXX of XXXX along with making a payment to an additional loan totaling {$5000.00}. I received funds from a grant I applied for in the state of Maryland and had to provide proof that I used those funds to apply towards my student loans. In the past the payoff letters were automatically sent to me, and I could easily access the payment information on my account to provide the state documentation proof. I realized I didn't get my documentation sent to me like I usually did in the past, so I first called in XX/XX/year> to request the documentation that I needed. It was a struggle because unfortunately they were going through a system transition, and some information was unavailable, but no one could understand why these documents were not automatically sent to me in the first place. It took me roughly 15-16 calls between the months of XX/XX/year> to XX/XX/year> to get the proper documentation that I had been requesting for months. Every time I called in, they were putting the request in, rushing the request etc. however I only received XXXX document in the mail, and it was wrong and didn't have correct information on it nor did it have what I had requested on it. It wasn't until XX/XX/year> where I finally was able to get the documentation, I had requested from them beginning in XX/XX/year> after spending many hours and my own personal time to try to get documentation I should have been provided in the first place and had access to in my online account. My second issue with them began over the summer as well when they were transitioning their system and that finalized in XX/XX/year>. This system transition affected my auto payments and did not carry over to their new system for some reason so I was told in the beginning of XX/XX/year> I would need to reenroll in auto pay. I submitted my reenrollment on XX/XX/year> where it stated it would take XXXX business days for processing and then XXXX billing cycles to be in effect. I waited and heard nothing, and my XXXX payment had to be made manually. I called back in on XX/XX/year> and on this date is when they finally fixed my first issue and got me my documentation I had been requesting since XX/XX/year> and I also brought up how I had heard nothing about my auto pay enrollment. The lady couldn't figure out what had happened, so I was told to reenroll again, and she opened a case for me regarding it. I have heard nothing regarding the case or my reenrollment. I reached out via a secure message to MOHELA beginning of XX/XX/year> because I was tired of calling them and being on hold and the information, I was given in the reply was information I already knew and not helpful nor did it answer my question. So, I contacted MOHELA again on XX/XX/year> via phone because I wanted an update on my auto pay enrollment since it had been once again longer than 7-10 business days from XX/XX/year> and I had heard nothing. My case from XX/XX/year> was still being " researched '' and still no update on my auto pay enrollment and I was told even though I called in on XX/XX/year> and given a case number that case wasn't even submitted until XX/XX/year>. I was told that they were having issues with the online auto pay enrollment. I am not sure when they were going to notify their customers of this, but I am assuming never since I have been trying to get enrolled since XX/XX/year> and this was the first I was hearing about it. The lady told me my statement for my XXXX payment cuts on XX/XX/year> and if I do not see auto pay for that payment then I am going to need to reenroll for the THIRD time. But since they are having issues with the online enrollment, she was going to send me a paper application to fill out in 24-48 hours to my online account to complete. This however starts my waiting time all over again. I asked about my interest rate on my loans since I am supposed to receive a 0.25 % discount on my loan rates for having auto pay set up and enrolled in paperless statements. I asked her to check my loans to see if I was receiving that rate since MOHELA discontinued my auto pay due to switching systems not me and haven't got me set back up for auto payments for 4 months now even though I have been trying. She told me that I was not receiving the discount, and I told her that, that was wrong, and they are fraudulently overcharging me on my interest rate and that it is not right. I explained that they took my auto pay off and now can't seem to fix it and I shouldn't be paying for their mistakes and issues. I said my interest rate needs fixed to reflect the rate with my discount plus the money I owe in interest adjusted. She opened another case for me but pretty much alluded that I probably wouldn't get my interest rate or interest owed adjusted which is absolutely wrong. They should have put everyone back on auto pay when their system transition was completed or notified their customers that they have been having issues with online auto pay enrollment for months now. This is delaying everyone 's auto pay enrollments and charging them more in interest which is very unethical. I am sure I am not the only one having this issue with them but this needs taken care of since they are a servicer of federal student loans. I want to see my auto pay put back in place and my interest rate backdated along with the money I owe in interest adjusted to reflect correctly. It is absolutely disgusting how long I have spent trying to get all of my issues taken care of and fixed with them and with no updates given. They have a fiduciary responsibility to their customers to respond in a timely manner and correct any errors on their part that cost the consumer unnecessary financial lost.

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