Consumer complaint received 2023-03-03
Company: MOHELA
State: NM
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
I am writing with a concern about a lack of transparency in the transition of my student loan from once servicer to another. 

I am a nurse practitioner working at a rural health family medicine clinic in XXXX XXXX, NM. Also, I am very fortunate to have qualified for a student loan repayment program through the Department of Health and Human Services. I have continued to make regular payments on my student loan during the student loan payment pause due to the Covid-19 pandemic. 

Previously my student loan had been serviced through XXXX XXXX. Two weeks ago this was transitioned to Mohela. On transition of my loan service agency I noticed the balance increased by >10 %. I was not able to obtain any concrete information as to the source of this increase in amount owed from Mohela representative ( XXXX # XXXX ), and when I sought information about this from previous servicer XXXX XXXX, I was told information will take a special request and be provided in 3-5 days via email. 

Via the XXXX XXXX website and according to the representative ( see attached chat log ), no payment history last 12 months, no balance information, including any information on accrued unpaid interest or total balance at the time of transfer to new loan servicer, are available except by special request due to the transition of my loan to a new servicer. Records are kept, but they are not readily accessible. 

I am concerned the lack of transparency and accountability in this transition leaves ample opportunity for fees and adjustments to be made that do not reflect actual balances. Im concerned the staff of either service agency have not been able to tell me why this adjustment was made. The Mohela representative ( XXXX # XXXX ) speculated it may reflect unpaid interest from prior to XX/XX/2020. However, no unpaid interest or other fees/charges were listed during the student loan payment pause on regular review of my account and balance via the XXXX XXXX website, and I am not able to confirm whether any unpaid interest was due via the chat with XXXX representative. Please note I have been working diligently and proactively to pay down my student loan balance even during the payment pause, and I absolutely would have directed my regular payments toward any unpaid interest in an effort to avoid future capitalization. 

In every other area of financial life balances and fees are clearly visible to promote accuracy and accountability of all involved parties. If unpaid interest was present, it was not visible to me. I encourage this type of information to be readily visible and accessible, with records mandated to be maintained and readily available online to borrowers via any student loan servicing agency in an effort to promote ethical treatment of people serviced by these agencies. Otherwise unethical reporting of balances/fees and adjustments may be the norm, and victimization of student borrowers may be usual practice. In addition this directly diverts and wastes the funding from the Department of Health and Human Services program I am so fortunate to participate in.

I appreciate your attention and any assistance or thoughts on this matter, and am available to answer any questions about my specific situation. I have requested the payment history, any unpaid interest, and amount of transfer from XXXX XXXX, but unfortunately this is pending. In the meantime my balance is simply higher without any explanation. 

Thank you.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation