Consumer complaint received 2024-02-08
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: MOHELA (RI)

When I attended college, my mother took out 4 Parent Plus loans. Last year, I attempted to refinance these loans into my name with a private lender. The total amount of the refinance was approximately {$67000.00}. 

In addition to my loans, my mother also has 3 loans for her schooling and 2 other Parent Plus loans for my brother 's schooling. When the loan servicer ( MOHELA ) received the payoff amount from the private lender ( XXXX ), they mistakenly applied it to my brother 's loans. 

On XXXX and XX/XX/XXXX, I called XXXX to find out why this had happened. I was told it was a mistake on MOHELA 's end. I called MOHELA twice on XX/XX/XXXX, once on XX/XX/XXXX, and four times on XX/XX/XXXX. It was almost impossible to reach an actual representative, and the few times I was able to reach a representative, I was told that it was a mistake on XXXX 's end. I assume that XXXX and MOHELA exchanged documents detailing exactly what was to be paid off with the approximately {$67000.00}. I wanted to see those documents as I assume that they specify which loans were supposed to be paid off. MOHELA representatives refused to send me any documents. 

After 7 more calls, I was convinced by a XXXX representative that, despite what the MOHELA representatives had told me, it was in fact MOHELA 's fault. I was also told by a MOHELA team dedicated to servicing XXXX loans that I could place these loans into forbearance while the issues were sorted out so that I would not have to make double minimum payments ( one to XXXX and one to MOHELA ). But after placing the request, I never heard back about the forbearance ( whether it was approved or denied ) and I have been making double payments for several months now. 

In late XXXX, I reached a MOHELA representative who seemed to understand the issue. She said it was an easy fix and she didn't understand why it wasn't resolved quickly. So she supposedly reapplied the misapplied payment to the correct loans. When I checked a week later, I saw that, because the refinance payoff was split into several payments on MOHELA 's website ( for reasons beyond my knowledge ), only about half of the payment had been reapplied correctly. 

On XXXX, I called again ( twice ) and was told that the last half was being correctly reapplied. Several weeks later, nothing had changed on the account. On XX/XX/XXXX, I called again ( twice again ) and was told exactly the same thing, that they were putting in a request to fix it. After several weeks, again nothing had changed. So I called again today ( XXXX ). I was told that the request from 13 days before was entered correctly but it was still " processing ''. 

I asked if they kept records of all of the calls I have made. They told me yes. I asked if I could see them and they said no, that it was somehow private information. After some badgering, the representative agreed to send me some sort of abridged version of the notes ( what this would entail, I was not told ). As of now, I have received nothing. I also asked to speak with a supervisor and was told none were available. After some time on hold, I was told I was being transferred to one. But instead I was sent to a " survey '' which was a prerecorded message that recorded my complaint and then hung up on me. I called back again and was again told there were no supervisors but that there were some sort of " advanced agents '' I could speak with. I have been on hold f

or 20 minutes and have not reached anyone. I am now hanging up out of frustration. I have now made exactly 28 calls to solve t
his simple issue, which is 100 % due to MOHELA 's error, and the issue has still not been resolved.