Consumer complaint received 2022-12-08
Company: MOHELA
State: NJ
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 filed Complaint # XXXX regarding this issue on XX/XX/XXXX. XXXX XXXX responded and the Complaint was closed on XX/XX/XXXX, without absolutely no progress towards my initial complaint. Did anyone even read my initial request? 

Request was made on XX/XX/XXXX with FedLoans to refund all student loans paid during XXXX 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 XXXX hours and forty-five minutes that Mohela could not initiate the refund request because the loans were paid off through Fedloans, not Mohela. This was the first time I received this information despite calling well over XXXX times since original request was made on XX/XX/XXXX. I was directed to call Fedloans. 

I contacted XXXX XXXX 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 XXXX for further guidance. All three times the call was dropped. 

I filed the complaint with CFPB # XXXX and Fedloans responded that this was Mohela 's responsibility, but Mohela claims the loans were paid off while they were serviced with Fedloans, so Mohela isn't responsible. 

I filed a complaint with the Department of Education OMBUDSMAN on the same day and received case # XXXX. I call everyday only to hear that as of XX/XX/XXXX my case still is not even assigned to anyone. 

Both Mohela and XXXX seem to agree on one : The Department of Education must submit the request to Treasury for the loans that were paid in full. The money is all coming from the same place, so it really does not matter who is responsible for making the request, I just want my money, I have a legal right to it pursuant to the CARES Act and subsequent Executive Orders, and I need it before the end of this year. 

I would appreciate a phone call from someone that can actually assist me with resolving this issue because I am baffled by how poorly this is being handled.

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