Consumer complaint received 2026-04-07 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA
State: MA

Complaint narrative:
Bottom line : MOHELA has charged me too much interest, promised to review/fix, and has not done so. I am writing to report errors in my student loan account. Below, please find a list of the errors and/or inconsistencies in my account since it was transferred to MOHELA from XXXX XXXX XXXX I have a downloaded copy of the documentation from XXXX XXXX from the transfer date in XX/XX/XXXX that I can provide you, if necessary. For reference, the total balance on all loans transferred from XXXX XXXX to MOHELA ( this was during the XXXX forbearance period ) was {$89000.00}. The first error in my MOHELA student loan account is the interest my account has been charged or accrued between XX/XX/XXXX, and the current date, XX/XX/XXXX. I have made payments on my account since XX/XX/XXXX in the amount of {$10000.00} of which MOHELA charged my account {$1900.00} in interest. This interest should NOT have been charged ; all payments should have been applied to the principal only because I was enrolled in the XXXX program when my loans were placed in Administrative Forbearance following the court order that ended the XXXX program. MOHELA has sent me numerous letters since XXXX stating that my loans are in forbearance and that no payments were due and no interest was accruing. However, I also have a couple of letters during the same time period stating that interest is now accruing so clearly there is a mistake in my account. Here is a summary of the letters I received in my mailbox from MOHELA since XX/XX/XXXX. All these letters are in my mailbox in my MOHELA account but if you need scans, I can provide them. XXXX. XXXX dated XX/XX/XXXX : XXXX XXXX XXXX has directed MOHELA to place your account into a brief forbearanceWhile you are in this forbearance no payment is required, and your interest rate will be set to 0 %. This means no interest will accrue while you are in forbearance. XXXX. XXXX dated XX/XX/XXXX : Repayment Schedule Change This letter provides a list of the loans as of that date with a repayment schedule. The Prior Principal Balance in the letter is {$87000.00} with XXXX capitalized interest and {$490.00} in Accrued unpaid interest for a total of {$88000.00} as the amount to be repaid. XXXX. XXXX dated XX/XX/XXXX : On XX/XX/XXXX, a federal court issued a stay preventing the XXXX from operating the XXXX XXXX. As a result of this ruling, XXXX has directed MOHELA to put your account into a forbearance. While you are in this forbearance no payment is required on your account and your interest rate will be set to 0 %. This means no interest will accrue. XXXX. XXXX dated XX/XX/XXXX : Contradicts prior letters. This letter is titled XXXX Update and states Although no payments are due at this time, interest continues to accrue on your loan ( XXXX ) during the forbearance period. The total balance for all loans in this letter is XXXX with Unpaid Accrued Interest to Date of {$1900.00} despite the loans showing 0 % interest rates in the same letter. This interest should not have accrued. XXXX. Letter dated XX/XX/XXXX : Your Student Loans Are in a Forbearance You are currently a borrower on XXXX and XXXX Days have passed since we received your IDR application, and it has not yet been processed. While you are in this forbearance no payment is required on your account and your interest rate will be set to 0 %. This means no interest will accrue while you are in forbearance. XXXX. XXXX dated XX/XX/XXXX in response to a letter I sent on XX/XX/XXXX. Our records indicate you are currently enrolled in the XXXX plan with a monthly installment amount of {$380.00} that is in a forbearance at this time During forbearance, SAVE borrowers will not have to make paymentsYou will be in this forbearance until servicers are able to accurately calculate monthly payments, which XXXX expects servicers to be able to do no earlier than XXXX XXXX do not have to make your monthly payments on your student loans, interest is not accruing Be advised, MOHELA is in the process of updating borrowers accounts to ensure they accurately reflect the 0 % while borrowers are in this forbearance. BUT, in the most recent letter dated XX/XX/XXXX, MOHELA again states that interest IS ACCRUING : XXXX. XXXX dated XX/XX/XXXX titled XXXX UPDATE. The loan ( XXXX ) listed in this letter are currently in forbearanceAlthough no payments are due at this time, interest continues to accrue on your loan ( XXXX ) during the forbearance period. This letter has a total balance of {$82000.00} and {$4900.00} Unpaid Accrued Interest to Date. ( Despite the fact I have made payments of {$10000.00} since XX/XX/XXXX! ) This balance even without accrued interest is clearly incorrect and too high and the accrued interest reported is in error. XXXX. XXXX dated XX/XX/XXXX : Your Student Loans are in a Forbearance. Once again, this letter states You are currently a borrower on XXXX you are in forbearance no payment is required on your account and your interest rate will be set to 0 %. This means no interest will accrue while you are in forbearance. It is clear that I have been improperly assess interest during this forbearance. Another anomaly in the account is the reported interest on the XXXX XXXX for the account. The XXXX shows interest paid in the amount of {$4700.00} in XXXX, but the account shows {$3400.00} as total interest paid by my calculation. Which is correct? And was this interest capitalized or not? Furthermore, since the date my loans were transferred from XXXX XXXX to MOHELA, there is possibly only XXXX year when my loans should have been accruing any interest and that would be the time between the general forbearance for XXXX XXXX ( that began on XX/XX/XXXX ) which ended on XX/XX/XXXX and the start of the forbearance period beginning XX/XX/XXXX related to the XXXX program and which continues through the current period. I request that my loans be reviewed from the date they were transferred from XXXX XXXX to MOHELA to determine my correct balance on each loan and the correct amount of interest that should have been applied. It is not sufficient to examine only the period when the XXXX forbearance is in effect because the balances have fluctuated widely and frequently for no apparent reason. Furthermore, I have made all payments that were due on time, and I have never been in arrears ; I have also been paying more than the minimum due for the past year, yet the balance today doesnt make sense. To summarize : According to XXXX XXXX records, my total loan balance when transferred to MOHELA was {$89000.00}. Between XX/XX/XXXX through XX/XX/XXXX ( the period between forbearance periods ), I made payments totaling {$4100.00} and paid {$2400.00} in interest with {$1600.00} paid to principal. During this period, MOHELA shows an adjustment and added {$990.00} in interest to the account on XX/XX/XXXX. I would like to understand what that adjustment was made. Additionally, from XX/XX/XXXX through XX/XX/XXXX ( during XXXX FORBEARANCE ), as I stated earlier, I made payments of {$10000.00} of which {$1900.00} was paid to interest and {$8300.00} reportedly was applied to principal. The interest charged during the SAVE forbearance is clearly in error. Furthermore, {$89000.00} ( the original loan balance transferred to MOHELA ) minus the payments I made totaling {$14000.00} should leave me a balance of {$74000.00} plus any interest that was applicable during the period when forbearance was not in effect from XX/XX/XXXX to XX/XX/XXXX. Yet the total balance on my account swings wildly day to day for no apparent reason and without explanation. I started tracking during the XXXX forbearance and here are some of the data points I recorded during this period ( I have hard copies of the records ). The totals reported below appeared on the All Loan Details page of my MOHELA account as of the date listed : Total Current Date Balance {$85000.00} XX/XX/XXXX {$84000.00} XX/XX/XXXX {$84000.00} XX/XX/XXXX {$83000.00} XX/XX/XXXX {$80000.00} XX/XX/XXXX {$79000.00} XX/XX/XXXX {$81000.00} XX/XX/XXXX {$80000.00} XX/XX/XXXX {$80000.00} XX/XX/XXXX {$77000.00} XX/XX/XXXX {$81000.00} XX/XX/XXXX {$79000.00} XX/XX/XXXX Note how the balance increases randomly between several of these time periods despite significant payments made each month and the fact that NO interest was supposed to accrue. Payments were made each month over this time period ( as detailed above ) and yet the balances reported bear little relation to the payments made. I am requesting a complete month by month review of my account since it was transferred to MOHELA along with an adjustment in the interest charged and accrued to my account. I need a listing of the current balance due on each loan along with a total balance due. I also need clarification on the XXXX XXXX.

Company response to consumer: Untimely response