Consumer complaint received 2023-10-23
Company: MOHELA
State: OH
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Don't agree with the fees charged

Complaint:
Prior to the pandemic, my federal student loans were serviced by XXXX XXXX. When the forbearance and 0 % interest period began, I paid off two of my federal student loans. Then, once XXXX XXXX contract with the federal government ended, I was moved to MOHELA as my federal student loan servicer. After that transition, I requested a refund of monies paid toward my student loans per the CARES Act and received {$10000.00} back through the Department of Education. That refund was received in XX/XX/2023, when the 0 % interest period was still active. 
This amount equaled the principal balances of all monies paid toward those two federal loans in addition to payments made to two other federal student loan balances. In a financial activity summary I received from MOHELA, the amounts returned to the principal balances of each loan sequence directly equal the amount of my refund.

However, with the two sequences that were paid off, additional interest balances were added to the account. I repaid each of the principal balances of those loan sequences in XX/XX/2023, again during the 0 % interest period, but still have interest balances owed. 
I called MOHELA on XX/XX/XXXX  and was told that I must have owed interest prior to the pandemic ; I disputed this claim ( as I had paid extra toward my student loans every month since graduation ) and asked for evidence that this interest was owed. I was told that this issue would be investigated and that I would receive a response from MOHELA within 3-5 business days. 
I did not receive a response within 3-5 business days and followed up via the messaging feature twice to no response ( the messages were later " answered '' only to say that MOHELA saw I called and " assumed my issue was resolved '' ). 
I then called again nearly a month later on XX/XX/2023. The associate let me know that the inquiry had been marked as resolved with no follow-up. However, this associate was more committed to working through the issue and finally came back with the response that the interest was supposedly interest I had paid that was refunded back to me from the Department of Education.

It was then that I laid out the math previously stated : that the principal balances returned to each of my loan sequences exactly equaled my refund through the Department of Education. Therefore, if I had paid toward any interest, I certainly was not refunded it, nor could I owe it. I was told once again that it would require further investigation and I would receive a response within 2-3 business days. I then received a case number for my request for documentation of the interest balance. 
I called back on XX/XX/2023 to inquire about my case ( total hold time : over three hours ) and was told that cases can take up to 30 days from when they are initiated ; in asking for a decision date, I was told no later than XX/XX/2023. About a week later, ALL of my loan sequences were placed on forbearance with an end date of XX/XX/2023. I did not request this, nor was it communicated to me until it happened. I did, however, pay a monthly payment on all of my loan sequences ( per the guidance of the associate from my XXXX XXXX phone call, when I asked what I should do, since those loan balances were now accruing interest. That associate also said I would be refunded if the case was found in my favor. ). 
It is XX/XX/2023 ; I was on hold for two hours and the associate said the case was still open and she would have to transfer me to a higher agent who would " call me back '' ( since I had to work ). I have not received that follow-up call. 
In general, MOHELA does a poor job of documenting issues in a way that the consumer can access. I am only so certain of these conversations because I have recorded every phone call. I received multiple, conflicting answers to my question and sheer lies about the timelines of my requests. My first inquiry was opened and closed without documentation. My case number and status is not visible to me on MOHELA 's online platform ; it was not emailed or otherwise documented ; I only received the number verbally when the case was opened. My loans were placed on forbearance without my consent or acknowledgement. 
I am thoroughly annoyed by MOHELA 's practices and firmly believe that I do not owe the balances on two of my loan sequences. I can not find any documented evidence that I do owe these balances, and apparently, neither can they. I ask that these loan sequences are discharged.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with non-monetary relief