Consumer complaint received 2023-05-15
Company: MOHELA
State: WA
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:
On XX/XX/XXXX, the student loan that is held by Mohela, a Direct Loan that is covered under the Pandemic Payment Pause, had {$6100.00} in interest added to the loan without any paperwork or notification. 

This loan is showing only {$24.00} due on the studentaid.gov website, and in all statements. I have tried calling several times and have written several times. 

The loan is covered by the 0 % interest during the payment pause. I was given conflicting information by the loan company when I asked why this was charged and have been told the following through their secure messaging on XX/XX/XXXX : " Dear___________, Thank you for contacting MOHELA . Our records indicate, Loan sequence XXXX is showing {$6100.00} in outstanding interest. This is after the refund of payments during the payment pause. 

However, the previous servicer history shows that a payment was made on XX/XX/XXXX in the amount of {$120.00}, {$24.00} went to the interest and paid it in full and {$98.00} was applied to the principle. When the refunds of the payment pause were done, the loan took on the interest as if it was not $ 0 % during the payment pause. 

If you have any additional questions or concerns, you may contact a supervisor on our Customer Advocacy Team at the number listed below and we will be happy to assist you. '' Mohela is clearly stating that they are somehow charging interest on the loan during the payment pause. I have called on several occasions since discovering this added to my loan. I have received no documentation and no paperwork to support this added interest. Nor has Mohela acknowledged that this is illegal and has taken any move to fix it. 

Call dates : XXXX spoke to XXXX id # XXXX XXXX spoke to XXXX id # XXXX I also messaged through Mohela secure messaging several times on XXXX when noticed interest added, then on XXXX, and XXXX, and XXXX. Last message states that they consider it resolved, still with no paperwork, response to investigation, or acknowledgement that interest can not be charged for loans during the payment pause. 

" Dear _______, Thank you for contacting MOHELA. Our records indicate, that you spoke with a supervisor on XX/XX/XXXX, regarding this matter. However, we want to make sure that all of your questions and concerns have been addressed. If you have any additional questions or concerns, you may contact a supervisor on our Customer Advocacy Team at the number listed below and we will be happy to assist you. '' Mohela refuses to address this issue and gives this standard response to all subsequent and previous inquiries. 


No where does it state that refunded payments, legal under the payment pause for payments made during the pandemic, change the loan interest, or occur any negative loan interest. Mohela verified this on XX/XX/XXXX when I first inquired about loan refunds, and XXXX also verified this on XXXX XXXX when I requested loan refunds to be eligible for loan forgiveness under PSLF or the BidenXXXX possible loan forgiveness. XXXX of Mohela verified this as well on XXXX when I asked on a recorded call. 

Moehla refuses to respond to this concern and still will not provide any paperwork. 

I have all documents of loan activity saved and none show interest added before XXXX. I was also never sent a letter about the interest being added, I only noticed it from logging into my account. 

Please see all loan documents that I have showing the loan being transferred with only {$24.00} interest in XX/XX/XXXX when I applied for PSLF and was transferred to XXXX. Then the transfer back to Mohela from XXXX, again only {$24.00} in interest. Then the loan balance once Mohela had received all the loans from XXXX and the loan refund requests. Again, only {$24.00} in interest.

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