Consumer complaint received 2019-12-19
Company: MOHELA
State: NC
Product: Student loan
Sub-product: Private student loan
Issue: Dealing with your lender or servicer
Sub-issue: Don't agree with the fees charged

Complaint:
I have a variable interest rate loan with the interest rate tied to one-month LIBOR, as described on Page 3 of my loan 's promissory note : " he variable interest rate is based on the 1-month London Interbank Offered Rate ( LIBOR ) ( currency in U.S. dollars ) that was published on The XXXX XXXX XXXX 's website ( or any generally recognized successor method or means of publication ) on the XXXX day of the calendar month immediately preceding each " Change Date '', as defined below. If LIBOR is no longer available the servicer will choose a comparable index. The interest rate on my loan will change as described below throughout the life of my loan until all amounts owed are paid in full ( whether before or after default, and whether before or after the scheduled maturity date of my loan ). My variable interest rate and Annual Percentage Rate ( APR ) will increase or decrease if 1-month LIBOR described above changes. The variable interest rate is calculated by adding the margin stated at the top of this Note to the 1-month LIBOR index published on the XXXX day of the calendar month immediately preceding each Change Date, as defined below, rounded to two decimal places. ( If the XXXX day of the month is not a business day or is a holiday, the reference date will be the most recent date preceding the XXXX day of the month that is a business day. ) The variable interest rate will change on the first day of every calendar month ( " Change Date '' ) if 1-month LIBOR changes. '' So, per the terms of my Promissory Note, for a given month, my interest rate is determined by rounding the rate published in the XXXX XXXX XXXX on the preceding XXXX of the month to two decimal places. Effective XX/XX/2019, Mohela, my loan 's servicer, is showing my loan 's effective LIBOR rate as 1.71 %. However, the rate published by the XXXX XXXX XXXX on XX/XX/2019 was 1.70275 % ( emphasis added ). The rate can be easily verified by visiting any local library and/or contacting the XXXX XXXX XXXX. Rounding this amount, per the terms of my Promissory Note, results in a rate of 1.70 %, not 1.71 % as is currently being applied. I have contacted Mohela multiple times about this matter and they state that, even though my loan is not being serviced in accordance with the terms of my promissory note, there is nothing that they can do to change the interest rate. Despite my insistence that they research this further and asking to have the issue escalated, Mohela is giving me the runaround. This is completely baffling to me - I am not the only one affected by this issue and I can not understand why a student loan servicer would be so apathetic when an error is pointed out. 

I would like the CFPB 's help in compelling XXXX XXXX / Mohela to service my loan correctly which, in this case, means retro-actively adjusting my applied interest rate to 1.70 % rather than 1.71 % for the month of XXXX, as well as doing the same for ALL affected customers.

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