MOHELA Student Loans Complaints 2020 Servicer Updates.
MOHELA Student Loans Complaints: MOHELA, which is otherwise known as the Higher Education Loan Authority of the State of Missouri, is a nonprofit student loan servicer that handles federal and private student loans. Compared to most other loan servicers, MOHELA has fewer complaints and better ratings with an A+ on the Better Business Bureau (BBB).
Still, like most servicers, MOHELA receives various complaints with some borrowers allegedly receiving incorrect information about their loans or having their loan handled improperly. Learn more about MOHELA, the issues that borrowers have with the company and how to change loan servicers below.
You should Know:
MOHELA Student Loan Review
MOHELA is a nonprofit student loan servicer used by both the federal government and private student lenders. It was created to service Federal Family Education Loan (FFEL) Program loans and to help ease the burden of student loans for borrowers. The company now deals with other loans types and services the loans by managing payments, helping you find the best repayment plan and handling your loans if you need to put them into deferment or declare forbearance.
MOHELA is definitely not the worst servicer to have managing your loans as it has received few complaints from borrowers to the Consumer Financial Protection Bureau (CFPB) and an A+ rating from the Better Business Bureau (BBB). However, you should still always monitor your student loan balance and payments to make sure that your loans are handled properly. MOHELA does still receive complaints about problems with how loans are handled and being told incorrect information from representatives.
If you’re having problems with MOHELA as your servicer, contact them immediately, and if you don’t get an adequate response, file a complaint through the federal student aid feedback system, CFPB or BBB. Perhaps you want to change student loan servicers, your best bet would be to refinance your loans. If you have federal loans, you can also try consolidating and your servicer may change or if you qualify for Public Service Loan Forgiveness (PSLF), your loans will be transferred over to FedLoan.
Repayment With MOHELA Student Loans
If you’re just beginning to make payments with MOHELA, you should start by creating an account on their user-login portal. You’ll need to provide your Social Security number, date of birth and other personal details to sign up. After your account is set up, you can then use your account to make payments online or on MOHELA’s app. And if you want to make sure you don’t miss any payments, you can sign up for automatic payments. However, you must make sure to still monitor your balance and payments. If you would rather not pay online, you can also call MOHELA’s customer service center or send a check in the mail.
If you have federal student loans with MOHELA, you can choose between standard, extended, graduated and income-driven repayment plans, depending on your loan type. You will be automatically enrolled in standard repayment but you should explore the other options available to you as another may fit better with your finances. For borrowers with private student loans, your repayment options will depend on your lender. You should also explore the options available to you but they may be a bit limited compared to the federal plans.
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MOHELA Customer Service and How to Submit a Complaint
If you need to file a complaint about MOHELA, here are some of the top websites to report an issue or problem you have with the company.
FSA Feedback System: The federal student aid feedback system allows borrowers to send any feedback about their loans, including complaints, positive feedback and to report suspicious activity. To file a complaint, you must describe the issue you are having with your loans and how you would like it to be resolved. The Federal Student Aid office will respond to your report as soon as it can.
Consumer Financial Protection Bureau (CFPB): The CFPB is another government website to send issues you are having with MOHELA but instead of just receiving complaints about student loans, it allows consumers to send complaints about any company. To file a complaint, you will have to answer a few questions to categorize the issue you’re having and then describe the problem. The CFPB will then send the complaint to the company for a resolution. According to the website, 97% of consumers receive a timely response to their problem.
Better Business Bureau (BBB): The Better Business Bureau is another company that works to resolve problems that consumers are having with companies. To file a complaint with the BBB, you have to provide your name, address and email and describe the problems you are having with the company. The BBB will then send your report to the business and ask for a response within 14 days. If the company doesn’t respond, the BBB will send another request.
If you haven’t already, contact MOHELA before using any of these services. You can contact the servicer by phone, secured email, mail or through their social media accounts. The company also has an information center that provides additional resources with account management tools and explains different types of student loans.
Common Problems FAQ With MOHELA Student Loans
MOHELA doesn’t have many as many complaints on file with the CFPB and BBB compared to other student loan servicers. However, there are still common complaints that come up on these sites filed by borrowers. Below we’ve listed three of the major complaints about MOHELA and how to avoid them.
Are there Troubles with how payments are handled
The most common complaint from MOHELA borrowers is about the way that the servicer handles its student loan payments. MOHELA failed to transfer over payments for one borrower, making the payment past due with the other servicer.
While other borrowers have tried to pay down their principal balance within the allowed amount of time and found that MOHELA instead put that money into future payments. This means that interest will accrue on that full principal amount. In this case, you should always document your payments and if you are transitioning over your student loans, call a representative before to ensure that everything goes smoothly.
Received bad information about loans?
Many borrowers also filed complaints about receiving incorrect information about how to qualify for Public Service Student Loan Forgiveness (PSLF) and getting conflicting information about their loans in general from MOHELA representatives.
Whenever you talk to a representative, you should take down their name and, if possible, have them send you an email confirming the information they gave you. Always keep records of your payments and any transfers of your loans. Also, don’t just rely on representatives for information, do your own research on your student loans and the programs you could qualify for.
Do people agree with the fees charged
The other main complaint among borrowers is that they don’t agree with the fees charged on their loans. Most borrowers that file this complaint are having a tough time with their payments and don’t get how the loan balance isn’t decreasing. If you are having trouble understanding your loans, you should contact a representative and work out the best repayment plan for your finances.
Also, try out different repayment plans using online student loan calculators. If you can qualify for income-based repayment plans, your loans will be forgiven after 20 or 25 years, depending on the plan.
Excessive Phone Calls from them?
All servicers need to contact the borrowers they work with at some point. For many borrowers, problems can arise and compound when their servicer cannot reach them. However, when other servicers may claim they did their due diligence after one or a few attempts, MOHELA does not give up. In fact, they may go too far.
This issue has two sides. First, MOHELA tried to contact borrowers whose account recently became delinquent. Several borrowers spoke about how after one missed payment, MOHELA launched calls to their homes, workplaces, and family members.
Often family members were not listed on the borrower’s account, but contacted through skip-tracing. Borrowers felt this was excessive given they were often just one payment behind. Some claimed to not actually be delinquent at all, but having paid on time or having been in forbearance.
The second side shows a different point of view: family, friends, and acquaintances of a (possibly) delinquent borrower. Complaints detail how they were called multiple times a week, sometimes multiple times a day, and were confused by the source of the calls given they did not have any loan associated with MOHELA.
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