Consumer complaint received 2025-06-21 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: NY

Complaint narrative:
MOHELA failed to correct improperly accrued interest after acknowledging errors on my account related to XXXX XXXX implementation and forbearance status. I submitted a secure message on XX/XX/XXXX and received no resolution. I also waited on hold multiple times and was promised supervisor callbacks that did not lead to action. This has been ongoing for months. Here is the secure message that I sent : I am submitting a formal complaint regarding approximately {$2000.00} in interest that has accrued on my federal student loans, despite my participation in an administrative forbearance related to the XXXX Plan. The interest charges are inconsistent with Department of Education guidance and with direct representations made to me by MOHELA in late XXXX. 

XXXX and XXXX XXXX. XX/XX/XXXX XX/XX/XXXX ( Pre-forbearance, during XXXX XXXX ) I was placed in an administrative forbearance while awaiting SAVE Plan implementation. I was verbally assured by a MOHELA representative during a call in XX/XX/XXXX that interest accrued during this time ( ~ {$750.00} ) would be removed, as it had accrued in error. This removal was never completed. 

XXXX. XX/XX/XXXX XX/XX/XXXX ( XXXX Forbearance due to Legal Injunctions ) I received a formal letter from MOHELA on XX/XX/XXXX stating that I was placed in a XXXX interest-accruing forbearance while my XXXX Plan application was pending due to court injunctions. At a XXXX XXXX average interest rate, the amount that should have accrued during this period is approximately {$540.00}. I do not dispute this amount if it was validly assessed and not otherwise covered by future SAVE enrollment retroactivity. 

XXXX. XX/XX/XXXX XX/XX/XXXX ( Post-forbearance, SAVE status unresolved ) Despite being told that I would be notified whether my XXXX Plan was approved or whether I would be placed in a longer-term forbearance with 0 % interest, I received no communication. My SAVE application was never processed, and interest has been accruing at the regular rate. I calculate this XXXX interest to be approximately {$1500.00}, which should not have been charged under the SAVE-related administrative forbearance protections that were supposed to be in place. 

Summary of Errors MOHELA failed to remove the ~ {$750.00} in interest that was explicitly acknowledged as a servicing error in my XX/XX/XXXX call. 
My SAVE application was never finalized, and I received no follow-up communication about my plan status, despite the XXXX window expiring. 
Interest has continued to accrue improperly for nearly XXXX months, contradicting XXXX policy and creating an inflated balance on my account. 



What Im Requesting : 1. Immediate removal of the {$750.00} in interest from XXXX XXXX. 
XXXX. Removal of all XXXX XXXX, XXXX interest ( ~ {$1500.00} ) unless MOHELA can demonstrate that I was formally notified of denial or non-enrollment in the XXXX Plan. 
XXXX. Written confirmation of my current IDR plan status and forbearance classification. 
XXXX. A corrected account statement showing accurate principal and interest amounts. 

I appreciate your prompt attention to this matter. 

Sincerely, [ name redacted ]

Company response to consumer: Untimely response