Consumer complaint received 2025-04-03 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: MOHELA
State: MN

Complaint narrative:
I had previously submitted a complaint to CFPB on XX/XX/XXXX # XXXX which MOHELA provided a company response on XX/XX/XXXX and the complaint was closed shortly thereafter. MOHELA has not rectified the issue for my initial complaint and I am again following up to seek a resolution for this matter. 

My student loans were serviced by MOHELA. XXXX XXXX, DOB XX/XX/XXXX, Account # XXXX. My original total student loan debt was approximately {$100000.00} in XX/XX/XXXX. I made a payment of {$24000.00} in XX/XX/XXXX towards my student loans, which I later requested a COVID forbearance refund request. After I had requested the COVID forbearance refund request my total student loan debt increased by that refund request amount to {$130000.00}, to which MOHELA informed me at the time that this was their standard practice prior to issuing a refund. 

In my original CFPB complaint submitted on XX/XX/XXXX the Companys Response was provided by MOHELA Customer Advocacy Team ( CAT ) confirmed receipt of the XX/XX/XXXX {$24000.00} payment and requested that I submit proof of this payment so that they can further research this issue, which I then submitted proof of my {$24000.00} XX/XX/XXXX payment via fax on XX/XX/XXXX. Additionally, in the Companys Response section of the CFPB complaint, MOHELA CAT stated that I requested a COVID forbearance refund appropriately for this payment on XX/XX/XXXX and that this payment was removed ( from my MOHELA account ) as of XX/XX/XXXX. I spoke with a MOHELA representative via the MOHELA web chat on XX/XX/XXXX and she confirmed that this refund request was being processed and instructed me to consolidate my student loans at that time, which I completed as instructed. The Companys Response statement confirmed that my student loans were then paid in full through consolidation on XX/XX/XXXX, which was 3 weeks prior to the payment having been removed from my student loan account so the loans that were paid in full via consolidation did not include the {$24000.00} amount. However, my total student loan amount prior to the XX/XX/XXXX payment was approximately {$100000.00} and after having requested a refund for the XX/XX/XXXX payment my student loan debt increased to {$130000.00}, which is the same amount of my refund request and per MOHELA this is their standard practice to increase the total student loan debt by the amount of the refund request prior to issuing a refund payment. So, due to MOHELAs error of increasing my total student loan debt by the amount in which I was due a refund ( {$24000.00} ), which again is their standard practice for issuing a refund, and I was instructed by MOHELA via their web chat to pursue consolidation of my student loans on XXXX/XXXX/XXXX, my student loan consolidation was processed for an incorrect higher amount, and shortly thereafter I was awarded PSLF for this incorrect higher amount of {$130000.00} instead of the correct amount of my student loan debt of {$100000.00}. 

I have made multiple attempts to follow up with MOHELA regarding this after my initial CFPB complaint. I provided them with the additional documentation that they required in their Company Response from my initial CFPB complaint via fax on XX/XX/XXXX. I have sent them emails, faxes, and called them asking for updates, to which they indicate that they are still researching this matter. I have waited almost 3 years for this refund which is rightfully and legally due to me. I am asking for assistance to seek resolution to this matter as soon as possible. I am again, respectfully requesting that MOHELA issue a COVID forbearance refund via the US Department of Treasury for the payment made in XX/XX/XXXX for {$24000.00}.

Company response to consumer: Closed with explanation