Consumer complaint received 2025-02-05 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: MOHELA
State: IL

Complaint narrative:
To whom it may concern : I am filing a formal complaint regarding improper interest accrual on my student loan account, serviced by Mohela, while I was in forbearance after applying for the Saving on a Valuable Education ( SAVE ) Plan. This complaint concerns {$2700.00}, which was applied to my account despite the Department of Educations directive that forbearance shall not accrue after sixty days of processing. 

Summary of the Complaint : 1. Improper Interest Accrual Despite Administrative Forbearance : I discovered on XX/XX/XXXX that interest had accrued on my account. I had applied for the SAVE plan on XX/XX/XXXX, which would have $ XXXX  monthly payment amount per Federal Student Aid. 
2. Inadequate Response from Loan Servicer : Shortly after discovering the interest charge, I contacted Mohela. A representative assured me that the interest would be removed. However, the charge remains on my account. 
3. Directive from Department of Education : The Department of Education website, updated on XX/XX/XXXX, states : If the borrowers application is not processed by their servicer within 60 days, the borrower will be moved into a general forbearance that does not count toward PSLF or IDR until their application is processed. Interest will not accrue in this general forbearance. Despite this guarantee, interest has continued to accrue on my account. 
4. Violation of Federal Protections : These actions may violate federal laws and regulations, including : o The Higher Education Act of 1965, which governs student loans and protects borrowers rights. 
o The Fair Debt Collection Practices Act ( FDCPA ), which prohibits unfair debt practices. 
o The Truth in Lending Act ( TILA ), which ensures accurate loan terms disclosure. 
5. Lack of Transparency : Mohela has not provided adequate documentation or a clear explanation for the improper interest charges, leaving me without a resolution. 

Requested Resolution : I respectfully request the following : 1. Immediate Refund of Improperly Charged Interest : Refund charged to my account 2. Adjustment of Interest Rate : Apply 0 % interest rate to my account until SAVE plan litigation is resolved. 
3. Review of Loan Account : Conduct a full review of my account to ensure no additional improper charges.

4. Detailed Explanation : Provide a written explanation of the interest charges and their origin.

5. Preventative Measures : Ensure corrective actions to prevent similar issues for other borrowers. 

Conclusion : I believe Mohelas actions violate federal regulations and borrower protections. If this matter is not resolved promptly, I will pursue legal action and explore other avenues to ensure compliance with the SAVE Plan and federal guidelines. Thank you for your attention to this matter. Please contact me if further information is needed.

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