Handling loan servicing can be very daunting especially when facing unexpected challenges and suspected mismanagement. The recent account of a distressed borrower throws light at the level of financial and emotional confusion that goes on when loan servicers like the Missouri Higher Education Loan Authority (MOHELA), fail to do their jobs right and effectively manage the borrowers accounts.
A woman recently recounted her shock when she realized that her husband’s student loan balance had increased to $106,000. This shocking realization did not only take them into a hole of financial instability, it threw her into a state of emotional turmoil hence her statement “it makes me want to vomit”.
MOHELA’s track record.
The experience of this couple is not an isolated one as MOHELA has come under scrutiny for allegedly mishandling borrowers accounts, leading to inflated loan balances and borrowers distress. A former employee revealed that call center representatives were instructed to keep customers on hold for extended periods before transferring them to departments ill-equipped to address complex issues, exacerbating borrower frustration.
Legal actions
The severe and consistent complaints against MOHELA have accumulated into a number of lawsuits. The American Federation of Teachers (AFT) filed a consumer protection lawsuit against MOHELA, alleging illegal overcharging, incompetence, and misleading borrower communications. The lawsuit highlights MOHELA’s practice of “call deflection,” where borrowers seeking assistance were diverted away from call centers, hindering their ability to resolve issues effectively.
The emotional and financial toll on borrowers.
The distress of the borrowers affected by the gross incompetence of Missouri Higher Education Loan Authority (MOHELA), is profound. Beyond the crippling financial implications of their incompetencies, they have become victims of emotional stress as they are steadily feeling dejected, hopeless and frustrated. This is especially as there are nobodies to complain to and they are faced with an opaque communication and unresponsive customer service.
Resolution.
For the borrowers who are probably in the same situation, here are a few things you should do:
- Documentation: it is very important to document every process. From the communication ab initio with the customer service representatives to to the dates, time and content of every discussion. This is to ensure that there is tangible proof should anything go south.
- Persistence: considering the fact that MOHELA is not responding to all efforts to reach out, consider exploring other methods of getting to them such as writing correspondences, or visiting their physical office to ensure that the issue is solved.
- Advocacy: consider bringing this up with borrower advocacy groups that offer resources and help to those trying to get their way around settling disputes with loan servicers.
- Legal counsel: in cases where it is perceived that there is an obvious discrepancy, consulting with legal professionals that specialize in student loans can provide clarity on what steps to take and even redress the issue.
