Consumer complaint received 2026-06-15 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: FL

Complaint narrative:
I requested an official student loan payoff quote from MOHELA in XX/XX/XXXX and relied upon that quote to pay my remaining federal student loan balance in full. In late XX/XX/XXXX, I remitted approximately {$75000.00} to satisfy all outstanding principal and accrued interest reflected in the payoff quote. The payment successfully cleared my financial institution. Despite paying the full payoff amount, MOHELA has continued to display a substantial outstanding balance on my account. The current online balance remains approximately {$26000.00}, even though I was informed by multiple advanced customer support representatives that my account should have been paid in full and that the remaining balance is the result of an internal accounting or ledger issue. When reviewing my account, MOHELA 's website shows multiple loan groups with large negative balances ( credits ) and multiple loan groups with positive balances. Customer service representatives acknowledged that the account requires a " zero-out '' or accounting correction and advised that accrued interest since the payoff date would be reversed and that I should not have any remaining balance after the correction is completed. In XXXX XXXX, MOHELA submitted an internal request to zero out my account and provided Confirmation Number XXXX. I was advised that the correction process could take up to 90 days. Since that time, I have contacted MOHELA multiple times and submitted written inquiries requesting confirmation that : XXXX. All principal balances will be reduced to {$0.00} ; XXXX. All accrued interest since the XX/XX/XXXX payoff will be reversed ; XXXX. My account will reflect " Paid in Full '' status ; and XXXX Credit reporting agencies will be updated accordingly. MOHELA 's written response did not address these requests and simply stated that I had already spoken with a customer service representative. As of today, approximately 70 days after the zero-out request was submitted, my online account still displays an outstanding balance of approximately {$26000.00}. The account also continues to display loan groups with positive balances and accrued interest despite my full payoff in XX/XX/XXXX. I am requesting that MOHELA : XXXX. XXXX a complete accounting reconciliation of my loan account ; XXXX. Correct any payment allocation or ledger errors ; XXXX. Reverse all interest that accrued after my XX/XX/XXXX payoff ; XXXX. Update my account to accurately reflect a {$0.00} balance and " Paid in Full '' status ; and XXXX. Correct any information reported to the credit reporting agencies so that my credit file accurately reflects that my student loans have been satisfied. I have retained documentation of the official payoff quote, proof of payment, subsequent communications with MOHELA, and the confirmation number associated with the requested account correction.

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