Date Received: 2018-12-10
Product: Private student loan
Issue: Dealing with your lender or servicer
Consumer Consent Provided to Share Complaint: Consent provided
Consumer Complaint: I refinanced my Federal Loans with Mohela XXXX XXXX to obtain a better interest rate than what I was receiving with my Federal Loans. I came across 2 issues that I found to be quite problematic.
The initial issue I had was that while I was making my minimum autopay installments, I was also making additional payments on a monthly basis. I had been doing so for several months/years, when I had contacted the company in regards to some accounting issues I was seeing. At that time, they then told me that all of those additional payments could have been going to the principal rather than the interest. I had been making substantial monthly payments ( XXXX XXXX ) that ultimately was not benefiting me as the consumer in any way whatsoever. They never contacted me to let me know this was even an option. I went back through their contract and I could not find any location that explicitly told consumers if you made extra payments, they could go to the principle. They intentionally kept this from me and other consumers. As a XXXX XXXX, my loans are substantial ( XXXX ) which having made those initial payments to the principal would have helped me and my family immensely.
In addition, as I had now been alerted to the fact I could make payments to my principal rather than just the interest, I was seeing some benefit in that my overall principle was decreasing. As my loan was leaving forebearance and I was going to have to make full monthly payments, I again looked at my balance, and to my utter dismay, my principle balance had returned almost to its initial level ( XXXX ) even though I had been making large additional payments.
I called Mohela XXXX XXXX to discuss this with me, where they told me at the end of forebearnace, there was an additional XXXX fee that was incurred when the loan left forebearance. Needless to say I was enraged.
I begged for some reprieve, only to be told this was in the contract and you are unfortunately ” out of luck. ” I have since left that company and refinanced with XXXX at this point, because I was so appalled at these tactics.
I have already spent thousands of dollars attempting to be a responsible consumer and pay for my education. All of this money could have gone to my overall principle which would allow for me to have paid my loan back in full, in a shorter amount of time, and done responsibly. I am now continuing to pay an absurd amount on a monthly basis, to make up for what I thought I was mitigating over the past 2-3 years.
This is unbelievably deceitful and provides absolutely no benefit to the consumer whatsoever. They are keeping you indebted to continue to reap interest benefits for themselves while leaving you struggling on a monthly basis.
Company Response to Complaint: Closed with explanation
Was Company Response Timely: Yes
Did Consumer Dispute Company Response: N/A
Complaint ID: 3096846
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