Consumer complaint received 2024-09-27
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA (TX)

I am writing to formally request assistance in resolving ongoing issues with my student loan servicer, Mohela, regarding the payoff of my consolidated loans ( XXXX XXXX XXXX XXXX XXXXXXXX ). Despite my efforts to pay off these loans in full, Mohela has continued to charge interest and has failed to appropriately apply my payments. 
Here is a detailed timeline of the events : XXXX. XX/XX/year> : I made a payment to Mohela to fully pay off the accumulated interest on XXXX XXXX  XXXX ( {$2000.00} ) and XXXX XXXX  XXXX ( {$5000.00} ). As of this date, all interest should have been paid in full, with {$6400.00} applied to interest and {$590.00} to principal. The payments applied to each loan were broken down as follows : XXXX XXXX XXXX XXXX : Principal : {$200.00}, XXXX : {$4700.00} XXXX XXXX XXXX XXXX : Principal : {$380.00}, XXXX : {$1600.00} XXXX. XX/XX/year> : I logged into my Mohela account intending to pay off XXXX XXXX  XXXX, but the system required a payment on XXXX XXXX XXXXXXXX as well. I made a payment of {$25000.00}, with {$25000.00} applied to principal and {$80.00} applied to interest, broken down as follows : XXXX XXXX XXXX XXXX : Principal : {$25000.00}, Interest : {$35.00} XXXX XXXX XXXX XXXXXXXX : Principal : {$150.00}, Interest : {$44.00} As of XX/XX/year>, XXXX XXXX XXXXXXXX should have been paid off with a remaining balance of {$0.00}. 

XXXX. XX/XX/year> : A payment of {$370.00} was made ( either automatically or manually, I can not remember ), with {$170.00} credited to XXXXXXXX XXXX XXXXXXXX, leaving a credit balance of {$170.00}. XXXX XXXX  XXXX had a remaining balance of {$31000.00}. 

XXXX. XX/XX/year> : I attempted to pay off XXXXXXXX XXXX XXXXXXXX with a payment of {$31000.00}. Again, the system required a payment on XXXX # XXXX. A total of {$31000.00} was applied to principal and {$100.00} to interest, with {$170.00} credited to XXXXXXXX XXXX XXXXXXXX, which now showed a credit balance of {$370.00}, while XXXX XXXX  XXXX showed a remaining balance of {$190.00}. 

Despite these payments, my Mohela account still shows an outstanding balance of {$190.00} on XXXX XXXX XXXXXXXX, with a due date of XX/XX/year>. Additionally, XXXXXXXX XXXX XXXXXXXX continues to have a credit balance of {$370.00}, yet Mohela is continuing to charge me interest on both loans even though they should have been paid off by XX/XX/year>. 
I have called Mohela several times to resolve these issues : On XX/XX/year>, I spoke to representatives XXXX and XXXX, who informed me that it could take XXXX to XXXX  days for the system to apply payments correctly. I was told a ticket for reapplication of payment was submitted, which could take XXXX business days to resolve. 

On XX/XX/year>, I was informed that a reapplication of credit was done on XX/XX/year>, but only {$170.00} was applied. This partial credit is not visible in my Mohela account. 

As of today, XX/XX/year>, my Mohela account still shows a balance on XXXXXXXX XXXX  XXXX, and I continue to be charged interest on loans that should have been paid off. Mohela has failed to provide a clear explanation or resolution.