MOHELA 90 days late.. please help

[Onix]

I want to start by saying I'm 30 years old, and am newer to my credit journey.

I had always paid in cash/from a debit account for things I needed in my past.

Over the past 1-2 years I got some credit cards, and regularly monitor equifax.

I have been excellent with payment history and the only negatives were some late student loan payments pushing 5 years ago now.

I had a baseball and accademic scholarship for college, but it was a very expensive school and my father took out some student loans to help pay the differences. I guess he missed a few payments nearly 5 years ago, and that has been the only hurting factor on my credit.

I was around a 700 and payment history was looking great since. I was looking forward to them aging off in just a few years now.

Fast forward, I didn't even realize I had any student loans remaining, or if I did that my father wasn't paying them. I realize maybe I should've asked questions, but he has his own company and is very well off, and has never so much as mentioned it to me. I guess they were paused during the Biden era? All of the sudden today out of no where I have a 90 days late notification on my experian app that popped up. I called him and he said I still had balances, and he didn't realize they were back active.

I no longer can focus on the 5 year old accounts about to age off, and my credit score dropped nearly 150 points. I feel sick.

What should I do to move forward? I called immediately into Mohela to pay any balances, and get ahead. They have a 3 hour wait on the call line, and are supposed to call back. This wasn't even remotely on my radar until the late notification came up. Is there anything at all I can do to fix this? I don't get any statements, alerts, or anything from mohela. I'm obviously going to completely change that moving forward, but would love any advice the members here could provide. I feel like all of my work and deligince on my credit the past several years has been for nothing now.. I was hoping to buy a home this coming year. I feel like this will crush my chance at a good mortgage rate.. I'm just hoping there is someway possible to fix this..

[USMCOne]

So little bit of experience in this (paid mine off last year finally). So when the past Administration was in they sourced all the loans to 3 different handlers. Yours is Mohela. Mine also was. It is very very difficult to get through to them but you should be able to access your account on line. I had to go through some hoops actually after my transfer I had to go to a Dept of Education website which linked me to my Mohela account and eventually was able to get in.

Within that site you will see a multitude of things. Some of them is payment, terms of payment, requests for extensions etc.

It would behoove you as the current Administration is throwing all accounts with money owed that are past due to collections and collections starts this summer. I believe the most they can take is 15% of your income but its going to be a huge ding on your credit score. They can also intercept tax returns ext.

Will this crush your mortage rates you bet. Alot of debt you can escape but the IRS and Dept of Education you cannot. Once you do get through you usually can work out what a acceptable amount is to pay.

The only way to fix this as all of what the past administration did was struck down in the courts is to bring your account up to date as fast as possible and pay the balance off in monthly installments. Student loan people for better or worse are now being held accountable for past due amounts.

[Onix]

Thanks for the reply. Since this, I opened an online account and have taken over the payments. I already paid off everything past due, and paid for the next upcoming payment. Just wondering best paths for moving forward. Any chance I can try to explain the situation and get a goodwill? I tracked down the CEO's email. Thought I would try that. I will continue paying ahead of time now that I am aware of them, and handling myself, but really hoping I can fix the issue that's already posted.

[USMCOne]

So your talking 1.5 trillion dollars in student loan debt with with 5 million in default with about 4 million in a 90 day no payment status. What that means is they are stinking swamped. Beyond belief swamped. 3 different organizations handling all of it with direction now which is reverse then it was ... send it all into collections. I dont think a email to the CEO of Mohela will help but it certainly can't hurt.

Not being rude being real .. everyone has a story. Just how it is. While not doubting you you might have to suck it up and are a casualty of this. You can try amending your credit report by filing a discrepancy. What matters is your up to date have a plan and paying. Time will heal it but it will be on your report for a while. I missed one stinking payment on a friggin vaccum cleaner 4 years ago (Dyson) and its still on my credit.

Will it hurt your chances at a home loan. Might might not. Be surprised at how savvy banks are.

[Onix]

No I get it, appreciate the realness. I understand it all, just trying to be proactive.

Crazy how the administration change affected so many, and they aren't trying to help anyone on it that's trying to also help the situation.

You would think they would forgive the first 3 months this year or something, being that most didn't realize the change was happening.

[Seatac]

So my question is WHEN were you late? Pre Covid?

They just restored having ppl make payments  so you couldn't be recently 90 days late.

What dates are the latest? If after payments were paused then the notice is invalid. 

[USMCOne]

Thing is they did. Now in your situation you did not know about it. During the past Administration all of the lenders had a set up where amounts could be lowered, amounts could be forgiven etc. Assuming you hit the income qualifications at the time which were very generous. Thing is YOU had to do it. It was not a automated process for the most part. You had to go in fill out this or that. You missed the boat.

Also none of that was actually legal for the most part. There never was any legislation passed etc. So in essence all that is being done is what should of been done from the get go. To allow 10 million to go into a default status without any action taken is a glaring defincieny in the lending system. Any Bank, Credit lendor would be long ago bankrupt from all this.

[Onix]

I'm not sure. If you'll read the original post, I didn't even know I had them, until they posted against my credit.

I have now taken over payments, and caught them up, but best I can tell the website shows that I was 90 days late for December payment.

It shows December 24 to just recently in April.

[USMCOne]

Sorry what I meant was last year most of all last year there was a multiude of options if you had known you could of taken. Everything from restarting the loans like it was day one, debt forgiveness, debt reduction etc. It all had to be initiated by YOU though. Then if you had done that all negative missed payments they removed from your credit record if you brought up to good standing.

Sadly that is all over now.

[Seatac]

Okay did some quick Google research.  Oct 2023 payments were restarted. Your dad and you missed whatever notification was sent by the servicer.

Odd question.  What are the chances your dad will pay off the student loans and you pay him back? Even if he has to take out a loan? Seems he has some, but not all, responsibility in the situation. 

I would ask him.