Consumer complaint received 2023-04-06
Company: MOHELA
State: NJ
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
On XX/XX/XXXX, I filed Complaint # XXXX regarding an issue with refunding student loans paid during the COVID-19 forbearance period. I filed the complaint against my prior servicer, XXXX XXXX, who responded that they were not responsible for my refund and the case was closed on XX/XX/XXXX, seemingly without anyone from the CFPB reading my complaint or the response. 

Request was made on XX/XX/XXXX with XXXX to refund all student loans paid during COVID-19 forbearance period ( XXXX XXXX ). Call reference number was # XXXX. I was advised on a call two months later that I would not be able to get my student loans refunded because I paid select loan sequences in full, which I later learned was a false statement. In XX/XX/XXXX I learn that my loans are being transferred to Mohela and received an email on XX/XX/XXXX that the transfer process had began. On XX/XX/XXXX, I saw that my account had now reflected my current balance and contacted Mohela to initiate the refund process. I was told it would take 60 days. I called several times over the course of 60 days for updates, and never received any update. After 60 days, I called Mohela and was advised that the wait would now be 90 days following the influx of forgiveness applications from late XXXX following the President 's executive order. Called after 90 days from original request ( late XX/XX/XXXX ) and told loans were still in process. Was just advised today by a supervisor after being on hold for two hours and forty-five minutes that Mohela could not initiate the refund request because the loans were paid off through XXXX, not Mohela. This was the first time I received this information despite calling well over twenty times since original request was made on XX/XX/XXXX. I was directed to call XXXX. I contacted XXXX three times today, XX/XX/XXXX, and each time I call, I receive an automated response that my loans were transferred to Mohela, and I can press zero for further guidance. All three times the call was dropped. I filed the complaint with CFPB # XXXX and XXXX responded that this was Mohela 's XXXX, but Mohela claims the loans were paid off while they were serviced with XXXX, so Mohela isn't responsible. 

On XX/XX/XXXX, I filed complaint # XXXX against Mohela upon learning that Mohela was indeed responsible for initiating the refund request as my new servicer. On XX/XX/XXXX, Mohela responded to the CFPB complaint advising that my refund request had been processed as of XX/XX/XXXX. IT IS NOW XX/XX/XXXX, AND I HAVE YET TO RECEIVE MY COVID-19 REFUND.

Upon investigation from the Department of Education OMBUDSMAN, I learned today that the Department of Treasury has been ready to issue payment for 60 days but has yet to receive information requested from Mohela. That is completely unacceptable and Mohela must be held accountable for its gross failure in handling this matter for the past 9 months.

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