Consumer complaint received 2026-06-11 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA
State: ID

Complaint narrative:
There are XXXX primary issues : ( XXXX ) Mohela has reported to creditors that I am delinquent on loan payments ( at no fault of my own ). ( XXXX ) Mohela 's XXXX XXXX system is dysfunctional. It is not applying payments toward XXXX of my loans, and the correct amount is not withdrawn from my checking account each month. ( XXXX ) I made no alterations to my monthly payment amounts ; however, in XX/XX/XXXX I received notice that I was delinquent on XXXX loans ( XXXX Direct - Nebraska XXXX XXXX XXXX Direct, and XXXX Direct - XXXX XXXX XXXX ) . I didn't think much of it because I didn't change anything on my end ( as shown by my payment records ). I received notice of delinquency letters again in XXXX and XXXX. I confirmed that my XXXX amount covered the amount I owed each month and didn't see any issue. So I made a payment of {$170.00} ( posted on XX/XX/XXXX to my XXXX XXXX account ) to cover the delinquent amount on the XXXX loans. I noticed that the delinquent amount did not change and made another payment of {$170.00} ( posted XX/XX/XXXX to my XXXX XXXX account ). XXXX days later, I was still showing delinquent on payment. I wondered if I paid off XXXX of the loans in its entirety if I would still show as delinquent, so I made a full payment of {$1500.00} to XXXX Direct. Loan XXXX no longer showed as delinquent. Loans XXXX and XXXX still showed a delinquent balance {$120.00}. I spoke with Mohela on the phone about the this and was told not to worry, it wouldn't be an issue. I made XXXX more payments for {$130.00} and {$120.00} on XX/XX/XXXX and XX/XX/XXXX, respectively. I then waited until my next XXXX XXXX was pulled on XX/XX/XXXX and found that my delinquent amount went up to {$210.00} for Loans XXXX and XXXX. The payment for {$210.00} posted to my XXXX account on XX/XX/XXXX. This did nothing to impact my amount owed. Around this time, I spoke with Mohela again and was told my delinquency payments needed to be re-sequenced because they weren't being applied to the correct loans. They would submit a request for this completion that may take up to XXXX business days. I also spoke with the credit department and requested that they do not report me to creditors because the issues is not my fault. They agreed and also told me it may take up to XXXX business days. In XXXX I began receiving phone calls about my delinquent loans. I demanded to file a formal complaint and outlined my complaint to XXXX different people before I received a XXXX sentence written message with the subject " In Response to Your Recent Concern ''. They refused to provide me with a Case ID # or any more details. I received another call from Mohela on XX/XX/XXXX will the same subject of delinquency. I asked them to give me status updates on my previous requests about re-sequencing the payments, XXXX XXXX errors, and reporting to creditors. I was transferred twice and as I was transferred to a thir person, I was hung up on before I got a status update. I received an email on XX/XX/XXXX that my credit score dropped. I looked online and saw my score dropped XXXX points due to reporting of Loans XXXX and XXXX. Nothing has been corrected and Mohela keeps dragging their feet and transferring me to another representative who also doesn't know how to handle the issue. My delinquency amount continues to grow although I'm continuing to make payments ( delinquent amount today is {$450.00} ). See below for elaboration of the issue : ( XXXX ) My XXXX XXXX has been set to a total amount of {$340.00} for a long time, and then I randomly began receiving messages in XX/XX/XXXX that I'm delinquent. I didn't change my XXXX XXXX amount and was given no notice of payments changing. I last updated my XXXX XXXX amount to {$360.00} almost 6 months ago to cover my minimum monthly payment requirements ; however, only {$330.00} is withdrawn from my account each month. The discrepancy is because of Loans XXXX and XXXX. I have XXXX set to XXXX XXXX {$35.00} and for whatever reason only {$21.00} is withdrawn from my account. I have XXXX set to XXXX XXXX {$46.00} and for whatever reason only {$28.00} is withdrawn from my account. While Mohela 's system shows that the amounts above are being paid to Loans XXXX and XXXX, the delinquency amount of {$450.00} indicates that none of my payment to Loans XXXX and XXXX are being credited. XXXX Delinquency : {$450.00} XXXX Delinquency : {$370.00} XXXX Delinquency : {$290.00} XXXX Delinquency : {$210.00} XXXX Delinquency : {$120.00} The difference between each month 's delinquency amount is {$82.00}, which is the sum of the minimum monthly payments of Loans XXXX ( {$35.00} ) and XXXX ( {$46.00} ). Micromanaging my loan payments and finding Mohela 's errors is NOT my responsibility. They need to correct these mistakes and stop causing me all of this stress. On XX/XX/XXXX, I called Mohela and requested record of phone calls, complaints, requests, and discussions from XXXX who told me she has to transfer me to someone who can do that. Next was XXXX. I explained everything above to XXXX who told me that the XXXX business days has been exceed, and she's not sure why this hasn't been resolved. She tells me that I need a subpoena to access my records with Mohela. I ask to speak with a Supervisor. I was transferred to a Supervisor. I was given an automated message that I'd be called back within 2 business days.

Company response to consumer: Untimely response