Student loan -- Dealing with your lender or servicer -- Complaint #8136467
Complaint Overview
Complaint ID: 8136467
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: Maryland
ZIP Code: 21218
Date Received: 2024-01-09T12:00:00-05:00
Date Sent to Company: 2024-01-09T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
I am low income and applied for the newly introduced Saving on a Valuable Education ( SAVE ) Plan. I was deemed eligible with a predicted monthly payment of {$0.00} ( I make approximately {$13000.00} a year which according to SAVE means I will have no monthly payment or interest while my income is below {$32000.00} ). My application was processed and accepted and I was told that my eligible loans were places on an income-driven repayment ( IDR ) plan on XX/XX/XXXX. However on XX/XX/XXXX I received a Billing Statement stating I owe {$650.00}. Thinking it was still processing and would update soon, I waited a few day, but didn't get an updated statement. So I went to look at my loan details and the SAVE plan was only applied to XXXX of my XXXX eligible loans. I called immediately and was connected to a Mohela rep named XXXX at about XXXX XXXX on XX/XX/XXXX. She told me she had no idea why the SAVE plan was only applied to 4 of 10 loans and that it should have been applied to all 10 Federal loans because they all were eligible and there was no error on my end. Even though the SAVE plan should have been applied to all loans, she did not have a way of fixing this herself, so her solution was to have me reapply for the SAVE program over the phone. As for the currently due payment, she suggested putting the loan in Forbearance. The biggest issue with this is that I am now accruing daily interest while I wait for them to fix their error. Since XX/XX/XXXX, I currently have over {$70.00} of interest accrued and it goes up daily, when had the plan been applied appropriately and correctly the first time, there would be no interest. I just received a notice from Mohela titled " Correspondence Processing Delay '' which states it may take up to 90 days to process my request. This is another 90 days of interest that I was never supposed to accrue all because of a technical error on their part. It feels really unethical to first incorrectly apply this Federal SAVE program, send me a bill for loans I should not owe anything on, and now charge me interest daily while they take an unreasonable amount of time to solve the issue. And reading online, it seems many others have had this issue.
Frequently Asked Questions
What is Complaint #8136467 about?
Complaint #8136467 was filed against Mohela regarding Student loan specifically about Dealing with your lender or servicer. It was received by the CFPB on 2024-01-09T12:00:00-05:00.
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.