Consumer complaint received 2024-07-19
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: MOHELA (TX)

Subject : Formal Complaint Regarding Incorrect Interest Charges During Administrative Forbearance I am writing to formally file a complaint regarding the {$9100.00} in interest charges applied to my account during the administrative forbearance period, which lasted until XX/XX/XXXX. The details of this matter are as follows : Application Submission and Delays : - On XX/XX/XXXX, I applied for the IDR SAVE plan and received a notification that I would hear back from MOHELA within four weeks ( See Image 1 ). 
- On XX/XX/XXXX, MOHELA informed me that there was a delay in processing my application ( See Image 2 ). 
- On XX/XX/XXXX, I was placed on administrative forbearance again ( See Image 3 ). 
Interest Charges : - Around XX/XX/XXXX, I noticed that a substantial amount of interest ( {$9100.00} ) had been charged to my account ( See Image 4 ).

- Upon contacting MOHELA, two representatives assured me that the interest charges would be adjusted to reflect the original application submission date in XX/XX/XXXX, once my application was done processing and my first payment was made. 
o Note : My original amount was the same as it was since XX/XX/XXXX, during the student loan payment pause due to the pandemic. 
Follow-Up and Miscommunication : - Around early XX/XX/XXXX, I followed up on my application status. A MOHELA representative informed me that my application had been lost in translation and that the delay was due to an internal error, despite me providing all the correct information. 
- On XX/XX/XXXX, I was placed in administrative forbearance again ( See Image 5 ), and my IDR application was finally approved on XX/XX/XXXX ( See Image 6 ). 
- I asked about my interest charges during administrative forbearance. A representative informed me to follow up once my first payment was made. 
Continued Issues : - In XX/XX/XXXX, after making my first payment, I followed up on the interest charges. Despite explaining my situation and the error on MOHELA 's part, which MOHELA confirmed and acknowledged was their fault, I was told that nothing could be done to refund the charged interest, and I was offered only an apology. 
Given these circumstances, it is evident that the interest charges incurred during the administrative forbearance period resulted from MOHELA 's processing errors and delays. As a result, I am formally requesting the following actions : - Immediate adjustment of the {$9100.00} in interest charges to reflect the original amount, which the original amount remained constant since XX/XX/XXXX. 
- A thorough investigation into the processing delays and communication issues to prevent such occurrences in the future. 
- A written confirmation of the actions MOHELA taken to resolve this issue believe it is both unfair and unreasonable for me to bear the financial burden of interest charges caused by errors on MOHELA 's part. I trust that this matter will be handled promptly and professionally. 
Thank you for your attention to this urgent matter. I look forward to your prompt response and resolution. 
Kindly, XXXX XXXX