Consumer complaint received 2025-08-25 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: AZ

Complaint narrative:
Hello, I have had an ongoing issue ever since my student loans transferred to Mohela. I have called multiple times, and sent in multiple standing payment orders, but nothing ever changes. I have 23 different loans, and for some reason loan # XXXX XXXX are on one billing statement, and loan # XXXX XXXX are on a separate billing statement. My employer makes my student loan payments on my behalf, and every month, when their payment goes through, it is only being applied to loan # XXXX XXXX. I have called multiple times to try and get this changed, I have had my employer specify payments go to loan # XXXX XXXX, yet month after month only loan # XXXX XXXX are getting credited while # XXXX XXXX are shown as being past due. I do not want to consolidate my loans as I am about 8 payments away from PLSF and I don't want to do anything to jeopardize my PSLF standing. I would like my payments from my employer to be applied to all loans ( # XXXX XXXX ) and any excess to be applied to future payments. Over the past several months, I have had a payment history as follows : XX/XX/XXXX - {$3700.00} XX/XX/XXXX - {$830.00} XX/XX/XXXX - {$3700.00} XX/XX/XXXX - {$830.00} XX/XX/XXXX - {$830.00} XX/XX/XXXX - {$830.00} XX/XX/XXXX - {$830.00} XX/XX/XXXX - {$830.00} XX/XX/XXXX - {$830.00} XX/XX/XXXX - {$830.00} All of these payments were applied only to loan # XXXX XXXX and not # XXXX XXXX resulting in missed/late payments for loan # XXXX XXXX. Going forward, I would like a standing payment order to reallocate all incoming payments to be applied to loan # XXXX XXXX, and any excess to be applied to future payments. I have requested this in the past and yet my payments continue to be applied only to loan # XXXX XXXX. I do not want to have to call in every month to ensure funds are being applied correctly. Again, I do not want to consolidate my loans as I am close to completing my Public Service Loan Forgiveness ( PSLF ) requirements and I don't want to do anything to jeopardize my PSLF status. I initially spoke with a Mohela supervisor ( XXXX ) when I first noticed the issue on XX/XX/XXXX and was assured that the problem would be corrected in XXXX business days. Nothing was ever corrected, and month after month, the payments are applied only to loan # XXXX XXXX, forcing me to pay loan # XXXX XXXX separately out of pocket when there is more than enough coming from my employer to cover all my payments. Since then, I have spoken with a supervisor on XX/XX/XXXX and again on XX/XX/XXXX ( after spending XXXX hours on hold every single time I call ) and was again told that the issue would be fixed, and all payments would be reallocated to cover any missed payments from loan # XXXX XXXX. I have also been assured in every XXXX of my calls with a Mohela supervisor that all of my previous missed payments due to XXXX billing statement error would be overturned, and that those payments would then count towards PSLF once the funds were reallocated. As of today, XX/XX/XXXX, there has been no effort made to correct the issue or reallocate any of the previous payments and my PSLF counts vary among my different loans. I have also reached out to Federal Student Aid about this issue, my most recent complaint being on XX/XX/XXXX. On XX/XX/XXXX, I received word back from Federal student aid informing me Regarding your concerns, MOHELA has reviewed your account, and it has been determined that a request has been submitted to have your standing payment orders request expedited. Please allow up to 10 business days for this request to be processed. Again, as of today, XX/XX/XXXX, nothing has been processed. 



My next complaint : On XX/XX/XXXX my loans were erroneously placed into forbearance. The next day, I called in to request to have the forbearance lifted, however I was told that it would take 90 business days for that to reflect in my account. In the meantime, I was assured that the payments, that my employer is continuing to make monthly will ultimately count towards my PSLF qualifying payments once the forbearance has lifted. The forbearance has since been lifted, however there are several months of payments that have been deemed ineligible for PSLF due to the forbearance.

I am beyond frustrated because I have to take days off of work just to call in and speak with Mohela customer service as every time I call I am on hold for over 8 hours. When I do get through to a supervisor, I am told that they recognize the issue, and that it will be resolved in 5-10 business days, but then nothing ever gets resolved.

Thank You

Company response to consumer: Untimely response