Consumer complaint received 2023-01-30
Company: MOHELA
State: PA
Product: Student loan
Sub-product: Private student loan
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
Issue # XXXX : Inaccurate payment Amount posted - Return to School Deferment Approval As a full-time graduate student, MOEHLA 's representatives confirmed the 'gray " transformative timeline between semester dates and published XXXXXXXX XXXX XXXX XXXX proof of enrollment ( XXXX weeks ) status. MOEHLA 's response ( a year ago ) included submitting an electronic Deferment Form confirmed by an official from a University Official post communicating my University 's learner records standards of " verify enrollment until after the second week of each semester. '' During these transitional periods, my amount due would reflect a " missed monthly payment of {$550.00} ( varying > {$20.00} variation due to yearly principle sum increases/accrued interests ) UNTIL MOEHLA approved my semester 's deferment form and reset monthly " amount due : {$0.00}. '' Below are the exact dates of enrollment XXXX Summer & Spring Semesters : Spring Enrollment Dates : XX/XX/XXXX - XX/XX/XXXX Fall Enrollment Dates : XX/XX/XXXX XX/XX/XXXX After approval of my semester 's deferment, monthly payments ( including monthly accrual interest ) electronically posted {$0.00} including each semester 's transitional enrollment verification timeframes, an accrual monthly interest rate due monthly appeared as {$0.00} until XX/XX/XXXX ( lasted date of Fall 's academic semester ). Suddenly, in 16 days amount due {$0.00} ( XX/XX/XXXX ) jumped to $ XXXX. I contact MOEHLA. On XX/XX/XXXX, MOHELA 'S representative couldn't contextualize the purpose for the imminent escalatory of the amount due $ XXXX transfers me to a supervisor ( XXXX ). The supervisor confirms that the amount is disproportionally high due to an accounting cycle-type mechanical issue, manifesting as past wrongful payment dues. MOHELA Supervisor settled the dispute, stating these will be removed and/or substantially lowered and will be viewable online in 3-5 business days. The supervisor also sent an E-Form, rescheduling XXXX 's semester payment date to the end of the month ( mitigating these recurring nuances for my prospective semester 's Deferment payment approval application ) contingently on MOEHLA 's technical account update ( again between XXXX business days ). 

Issue # XXXX : Inaccurate payment Amount Confirmed by MOEHLA is Redirected : Late Monthly Payments post Deferment approval now as 'Accrual Interest ' ( XX/XX/XXXX XX/XX/XXXX ) MOEHLA 's presenting 46 DAYS LATE for XXXX, XXXX XXXX XXXX represents malapportioned provider payment, confirming monthly XXXX obligation for XX/XX/XXXX ( subsuming {$1400.00} accrual interest to principle balance in XXXX billing statement ). 

Per Section XXXX, accrual interest is optionally paid in monthly payments ( document attached ) XXXX members utilizing the following repayment options will not have interest capitalize at the end of the deferred period : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX for the following products : o Refinance loans disbursed on or after XX/XX/XXXX o In-School loans disbursed between XXXX o In-School loans disbursed after XX/XX/XXXX that elected interest Only or Fixed o Payment repayment option Previously approved Return-To-School deferments ( XX/XX/XXXX, XX/XX/XXXX ) resulted in {$0.00} monthly dues with monthly interest notices that were optional to pay. My delayed deferment approval of the Fall semester ( XXXX ) resulted in accruing a monthly principal billing payment of {$550.00}. From XX/XX/XXXX ( approval date ), my amount due was re-adjusted to {$0.00} until XX/XX/XXXX, when a {$1400.00} monthly installment amount appeared. As mentioned earlier, MOHELA 's XXXX, XXXX, confirmed the wrongful amount, which would bring my account up to date. XX/XX/XXXX, I noticed the account still reflected the amount due I spoke to various representatives and XXXX XXXX. XXXX confirms the sudden monthly amount of {$1400.00} as chargeback accrued interest that should have been posted to my account. Supervisor claims MOHELA 's limited responsibility in resolving due to interagency roles between XXXX and lender. The resolution ends with a " XXXX lender review involving XXXX '' and for me to contact XXXX to XXXX my loan status as " refinance loans. '' I contacted XXXX shortly afterward, and they confirmed that MOHELA is the only agency managing my account once my loan application is approved. Attached is MOHELA 's billing statement listing the amount due for the dates in question. Why is my loan program suddenly requiring monthly interest payments? Also, how did this residual interest ( {$1400.00} ) suddenly appear between enrollment dates, causing it to be 46 days past due? 

XXXX to work with MOHELA and bring my account to current, their self-governance and no explanation for hefty hurried charges raise significant concerns for borrowers. Although customer service wait time seemed tactful, that wasn't my concern : customer Service Supervisors and Representatives offering false information without being held accountable resulted in my XXXX complaint.

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