Consumer complaint received 2024-06-21
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: MOHELA (AR)

I made a large lump sum payment of {$37000.00} to my student loans that was posted to my checking account on XX/XX/year>. Once that payment was processed on my Mohela account ( it was no longer pending ), I requested a proof of payment document or financial transaction summary. I needed that proof of payment by XX/XX/year> and was sure that I had given myself plenty of time ( as I had done this process multiple times in the past ). Mohela completed my request and sent me an email on XX/XX/year>, stating that I could now log in to my online Mohela account and download that document. However, when I went to log in the weekend of XX/XX/XXXX, I received a " system-platform transfer notice '' stating that my Mohela loans were being transferred to the new platform and I could no longer access my Mohela account. I eventually confirmed with Mohela customer service representatives that my account began the transfer to the new Mohela/Dept of Education platform on XX/XX/year>. Therefore, I would have never been able to electronically access this proof of payment XXXX. 

I contacted Mohela on Monday, XX/XX/XXXX to try to have the document sent to me another way. I was told they could only mail the document and there was no other way to help me. I initially took them at their word and attempted to resolve the issue on my end. I am a XXXX XXXX  for the XXXX XXXX XXXX XXXX, and I am enrolled in the Education Debt Reduction Program ( EDRP ). Payments I make towards my loans, up to $ XXXX, are refunded to me at the end of each year, as long as I provide proof of payment. I gathered my bank statements and took screenshots of my loan balances on the Department of Education website to show the decreased loan balances, but worried this would still not be accepted as adequate proof of payment by the EDRP.

Since Wednesday, XX/XX/XXXX is XXXX, I had to wait until Thursday to attempt to contact Mohela again. I took most of the day off work in order to call Mohela and wait on hold, and because I was so nauseated and distressed ( at this point I essentially thought I was about to lose over {$37000.00} ). I was again told that they could not send me the proof of payment in a way that would arrive by XX/XX/XXXX. They told me the document was created and they could mail it ( which I had already requested they do on Monday, XX/XX/XXXX when I first called ), but there was no way to send this to me electronically. 

( There was no explanation as to why the document would not have been automatically mailed if Mohela knew that I would not be able to electronically access my account. I had requested the information with enough advance time, I believe the document would likely have arrived in time via mail if they had sent it to me straight away. I believe Mohela wrongly assumed that these requests were not time sensitive. I understand its difficult to run a loan servicing company, but given how much money theyre making, I think they could do better. ) When the customer service representative told me there was no way to send this document to me electronically, I requested to escalate the situation and speak with a supervisor. I was told, You can speak with the supervisor but theyre just going to tell you the same thing I am. I confirmed I wanted to speak with a supervisor and they transferred me. I was transferred approximately four more times before I spoke with a representative named XXXX with the Customer Advocacy Team who tried to help me solve the problem. She stated she could not email me the documents, but asked if I could receive a fax and agreed to fax me the documents. I am unclear why this was not offered from the start.

Unfortunately, the fax had not come through even after several hours, so I contacted Mohela again that Thursday afternoon at XXXX. I again was told they could not help me, and I had to keep insisting that I spoke with someone who told me they would fax the information. I was told this could not be correct, but I eventually found my way back to the Customer Advocacy Team and spoke with a colleague of XXXX. They were able to contact XXXX who agreed to re-send the documents via fax ( I had double checked that the number was correct, etc. ). They informed me the fax would definitely be sent by XXXX that Thursday. However, I checked with the fax destination at XXXX and those documents were never received. 

I have no way of knowing if this was a technology issue or an administrative one, but I was ( obviously ) very concerned and now had essentially one business day before XX/XX/XXXX to obtain my documents. I took Friday, XX/XX/XXXX off of work entirely to attempt to resolve the issue. I contacted Mohela at XXXX when they first opened and was eventually transferred to a representative named XXXX . She did some work in the background and eventually told me that Mohela would be able to email these documents straight to my G-Mail account after all. She stated it would have to come from another department, but that she had told them the deadline was today and I would definitely receive the documents via email by XXXX that day ( Friday, XX/XX/year> ). I asked her how long she anticipated it taking. She checked with that department and confirmed it should really only take a few hours. I told her I would give them three hours and call back at XXXX  if the documents had not been emailed. She agreed and gave me her name and ID number if I needed to reach her again. I did not receive any email by XXXX, and so called again. I was able to get in contact with the Customer Advocacy Team again, who told me they were still working on the issue. They informed me that I would receive my necessary documents by XXXX and that XXXX would call me when it was completed. I never received the documents or a phone call. I am currently hoping that EDRP will offer me an extension, but am unsure if they will do so, and may not be reimbursed the {$37000.00} amount. When an EDRP participant does not show proof of payment, they are essentially removed from the program. I was eligible to participate in the program for two more years, and I planned to max out my payments to XXXX XXXX. So, if EDRP does not grant me an extension, I have essentially lost out on {$80000.00} of future payments towards my loans, as well as the {$37000.00} refund for this year.