Consumer complaint received 2025-03-08 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Need information about your loan balance or loan terms
Company: MOHELA
State: AZ

Complaint narrative:
I submitted this letter to XXXX XX/XX/XXXX and also to Mohela. 

" I am writing to formally report a recurring and unacceptable issue with my MOHELA student loan accounts. This is the second instance of unauthorized interest accrual on my loans, despite them being in a status that should not incur interest. Both times, these errors have negatively impacted my credit scores. Specific Issues : *Unauthorized Interest Accrual : Despite my loans being in a status that should prevent interest accumulation, MOHELA has repeatedly added interest to my principal balance. *Inadequate Customer Service : On XX/XX/XXXX, I spent over XXXX hours on hold to speak with a MOHELA representative to address this issue. The representative confirmed the interest accrual was incorrect and stated they would submit a form to correct the issue. However, they could not guarantee the correction would be made. *Lack of Transparency and Accountability : I requested a comprehensive statement detailing the monthly interest accrual for the lifetime of my account. The representative informed me that this information is not available, and I was advised to manually calculate the interest added each month. This lack of transparency is unacceptable. *Continued Errors : Despite speaking with a MOHELA representative and being told the issue would be addressed, I have checked my MOHELA account today XX/XX/XXXX and observed that additional interest has been added since XX/XX/XXXX. Impact and Concerns : *The unauthorized interest accrual has demonstrably damaged my credit scores, with real-world consequences for my financial well-being. *The lack of transparency regarding interest calculations makes it impossible to accurately track the ongoing financial impact of my loan. *The combination of these factors, along with poor customer service, makes it impossible for many borrowers to effectively manage their student loans. *I am extremely concerned that these issues are occurring while borrowers are in an extremely vulnerable place, attempting to keep their heads above water with debt. Demands and Next Steps : *Immediate Correction : MOHELA must immediately correct the unauthorized interest accrual on my accounts, and provide me with written confirmation of the correction. *Credit Restoration : MOHELA must take all necessary steps to repair the damage to my credit score caused by their errors. *Comprehensive Accounting : MOHELA must provide a complete and easily accessible record of all interest accruals on my account, broken down by month. *Review and Prevention : MOHELA must review their internal processes to identify and correct the system errors causing these incorrect interest charges. *Escalation : If the above actions are not taken within [ reasonable timeframe, e.g., 14 days ], I will be escalating this complaint to the Consumer Financial Protection Bureau ( CFPB ), the XXXX XXXX XXXX XXXX Federal Student Aid office, and my state 's Attorney General. '' I received a letter from MOHELA XX/XX/XXXX stating they will process my request in the next XXXX business days. They are still adding interest to my loans negatively impacting my credit. My loans should not have been collecting interest since XX/XX/XXXX, they have been adding interest since XX/XX/XXXX as when I spoke to a woman XX/XX/XXXX named XXXX with Mohela confirming interest has been continually added. 

I have not received a response from XXXX.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation