Student loan -- Dealing with your lender or servicer -- Complaint #8188112
Complaint Overview
Complaint ID: 8188112
Company: Mohela
Product: Student loan
Sub-Product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-Issue: Don't agree with the fees charged
State: New Jersey
ZIP Code: 088XX
Date Received: 2024-01-19T12:00:00-05:00
Date Sent to Company: 2024-01-19T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
This complaint is due to my account being placed in default and charged {$10000.00} in interest due to delays and errors in processing my IDR application. I filled out my application for IDR/SAVE on XX/XX/XXXX via the studentaid.gov website. Noticing my application wasn't processed after the XXXX day processing time, I called MOHELA on XX/XX/XXXX and was told that I need to resubmit my income self-certification because it was never received ( even though it was uploaded on the studentaid.gov website. MOHELA then placed me on administrative forbearance and continued to charge me thousands of dollars in interest and application was still not processed. The administrative forbearance ended on XX/XX/XXXX and I was charged a monthly payment of about {$3400.00} ( when my SAVE plan payment should've been {$300.00} ). My account therefore went into default. On XX/XX/XXXX, I called and spoke with XXXX who transferred me to the advanced team and I spoke with XXXX. XXXX was helpful but did not offer an explanation for why application has still not been processed. XXXX stated that if I pay {$5.00} immediately over the phone she can process the application. I promptly complied and paid the {$5.00}. After some additional delays my account now shows that I am in the SAVE plan and that my first payment is due on XX/XX/XXXX. However I still have the following XXXX problems that I contacted MOHELA regarding at least XXXX times both by phone and email. 1 ) My account was charged {$10000.00} in interest that should '' ve never been charged had I been allowed to make my monthly payments. I would like to get this money refunded. The XXXX XXXX stated that people in my situation will not be charged interest until matter is resolved. But I can't get MOHELA to honor the directive. 2 ) Due to the delays, my account is in default. I called regarding this on XXXXXX/XX/XXXX and was told that my account should've never been taken out of forbearance while waiting and that the finance department will be contacted to fix this and take my account out of default. This still has yet to happen and my account is past due for about {$3700.00}. I am concerned that the default will not allow my future payments to be accurately applied to my monthly payment and therefore I will miss out on the subsidies that the SAVE plan provides. Thanks for your help XXXX XXXX Account number : XXXX
Frequently Asked Questions
What is Complaint #8188112 about?
Complaint #8188112 was filed against Mohela regarding Student loan specifically about Dealing with your lender or servicer. It was received by the CFPB on 2024-01-19T12:00:00-05:00.
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.