Student loan -- Dealing with your lender or servicer -- Complaint #8210660
Complaint Overview
Complaint ID: 8210660
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: Texas
ZIP Code: 77018
Date Received: 2024-01-23T12:00:00-05:00
Date Sent to Company: 2024-01-23T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
Mohela was required to place student loan borrowers on administrative forbearance for XXXX, XXXX and XXXX, due to them failing to notify borrowers in adequate time of the payments starting after the COVID-19 payment pause. Mohela informed borrowers at the time that payments due during this time would count towards public service loan forgiveness. My XXXX and XXXX payments have shown up as " eligible '' payments for loan forgiveness. My XXXX payment is showing up as " ineligible '' for loan forgiveness. XXXX is my XXXX ( or last ) payment to be made for loan forgiveness. The fact that Mohela is showing my XXXX payment as ineligible is hindering my qualification for loan forgiveness. I submitted my XXXX paperwork with them on XX/XX/XXXX to update my payment counts and to reflect that I have met my end of the deal. I have worked for 10 years in public service. I have done my work. Mohela is passing the blame to the department of education and says that it is not on them to change the payment to " eligible. '' They say they can not expedite the process. They say that the process will be done by XX/XX/XXXX, but they can not tell me when I might be processed in that timeline. It could be tomorrow, it could be XX/XX/XXXX. This rationale makes literally no sense considering that XXXX and XXXX are marked as eligible. What they are telling me is that it takes them up to 60 business days to certify a form for loan forgiveness and that I can now resubmit my form for qualification. They do not acknowledge that this will affect the money the money that I should be refunded because XXXX will qualify for loan forgiveness. So ultimately they give me these choices. Bearing in mind that I have qualified for loan forgiveness at this point, I have worked for 10 years in public service. I can : A. Wait on them to process the form I submitted on XX/XX/XXXX and reject it as saying I have 119 payments. Even though XXXX qualifies and they acknowledge XXXX qualifies. B. I can resubmit my form now, having made a payment for XXXX and XXXX. Restarting my timeline for loan forgiveness while continuing to pay them ( since they won't pause payments until either you wait over an hour to speak to them or they process the form ). C. I can cross my fingers and hope that they decide my XXXX payment is eligible before they process my payment certification ( ECF ) form. None of these are fair to me. I have done my end of this bargain. XXXX qualified and my payments should reflect it as qualified. To make me continue to pay for my loans is absurd, to make me jump through these hoops is also absurd. This is unconscionable behavior.
Frequently Asked Questions
What is Complaint #8210660 about?
Complaint #8210660 was filed against Mohela regarding Student loan specifically about Dealing with your lender or servicer. It was received by the CFPB on 2024-01-23T12:00:00-05:00.
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.