Student loan -- Dealing with your lender or servicer -- Complaint #7156079
Complaint Overview
Complaint ID: 7156079
Company: Mohela
Product: Student loan
Sub-Product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-Issue: Trouble with how payments are being handled
State: Illinois
ZIP Code: 60625
Date Received: 2023-06-22T12:00:00-05:00
Date Sent to Company: 2023-06-22T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
During the COVID-19 forbearance, my direct federal student loans were transferred from XXXX XXXX to MOHELA for servicing. Prior to the federal student loan pause, I was on the PAYE IDR plan at XXXX XXXX with a monthly payment of around {$200.00}. Federal Student Aid/U.S. Department of Education is extremely clear about what happens after the federal student loan payment pause ends if you were on an IDR plan prior to the pause. Directly from the FSA/studentaid.gov website, in multiple places : " If you were on an IDR plan before the payment pause began, heres how youre affected : Your paused payments will count toward IDR forgiveness. Youll stay on the same IDR plan when payments restart ( unless youve changed repayment plans during the pause ). You dont have to recertify before payments restart and for six months after the payment pause ends. '' " You won't be required to recertify before payments restart, and the earliest you could be required to recertify is six months after the payment pause ends. '' Since my federal loans have transferred, MOHELA is stating my payments once they resume will be {$1000.00} monthly. I spoke with several MOHELA representatives on XX/XX/2023, who are stating that I missed my IDR recertification in XX/XX/2023, so I need to recertify now in order to get back on PAYE IDR plan. This is incorrect. Under the rule of FSA/U.S. Department of Education, I was absolutely not required to recertify at any time during the pause, therefore, I could not have missed my recertification date or have been required to recertify in XX/XX/2023. The earliest I can be required to recertify my IDR plan is 6 months after the payment pause ends. Also under the rule of FSA/U.S. Department of Education, my payment once payments resume should be the amount/plan they were prior to the federal student loan pause, which is around $ 207 monthly on the PAYE IDR .
Frequently Asked Questions
What is Complaint #7156079 about?
Complaint #7156079 was filed against Mohela regarding Student loan specifically about Dealing with your lender or servicer. It was received by the CFPB on 2023-06-22T12:00:00-05:00.
How did Mohela respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Student loan) and describe your issue in detail.
Can I see other complaints against Mohela?
Yes, visit the Mohela company profile at readthecomplaint.com/company/mohela to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.