Consumer complaint received 2024-08-24
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA (OR)

In XX/XX/XXXX, MOHELA without written noticed moved my account to a new servicing platform. I did not receive my monthly bill on time to pay it before the due date that month, and in addition, they made it so I could only pay via mail by check due to this transfer to a new servicing platform. I sent a check for my total due balance of all my loans combined, a total of {$250.00}. The check was soon cashed by MOHELA per my bank account. When I next checked in the first week of XXXX, my account had been transferred and was marked as being past due. I called. I was then told I had sent my check to the wrong address and so it would take awhile for it to be processed into the new system. The address I sent it to was the one on the bill, and again, they had already cashed this. Next time I check, it was on the account, and even though I proceeded to pay XXXX 's bill, again in total of {$250.00}, it continued to say my account was past due. I contacted customer support again who stated they would put in a ticket to find out and I would hear back within XXXX business days. I gave it XXXX and called, only to be told that they had made an error and had only applied the check to XXXX XXXX instead of the full total of all my loans. They stated they would put in a ticket and have this fixed, give them XXXX business days. That came, I called, and was told, no, you're wrong, there's no ticket, but now there is, and it will be XXXX business days. I am then advised to pay only what I usually would per month. I proceed to do so, each time being hit with " your payment is late. '' 30 days pass, I call and I'm told it'll actually take another 60 days and that they had never said 30 days. I proceed to call every month this year and pay only what I owe. In XXXX, the customer service representative stated there'd been XXXX work done on my ticket and he sent it to a team to address " ASAP ''. Come XXXX, I call and zero progress on my request to have their error fixed as I have never been late a payment since graduating college in XXXX. The customer service representative that time put my account for the month of XXXX to XX/XX/XXXX into temporary forbearance/deferment so that it will no longer send me messages about a late payment. Except, this does not fix the actual issue that MOHELA has completely failed to resolve this issue as they have said they would time and again. My payments will become due again XX/XX/XXXX. I do not know if it will continue to state that I am overdue. I do however feel that it should not have taken nearly a year to resolve their error in applying my check to only XXXX loan instead of all my loans as I had marked on my bill. I do not feel that they can act with integrity and I fear that they will try to get more money out of me than I owe because of this error. I fear paying them because I am never certain if they will actually process my payment correctly. I still pay them, but it has broken my faith in them to fulfill their role as my service provider. I have never had this issue with my previous service provider, and I am disappointed that MOHELA has the contract at all considering how they have badly handled it.