Consumer complaint received 2026-03-24 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA
State: WA

Complaint narrative:
Company Name : MOHELA ( Missouri Higher Education Loan Authority ) Product : Federal Student Loan Servicing -- - Issue Summary I am submitting a complaint regarding an unresolved overpayment and lack of clear guidance from MOHELA on how to access or apply my funds. On XX/XX/XXXX, I overpaid my loan XXXX XXXX XXXX Subsidized by {$1500.00}, resulting in a credit balance on my account. It has now been well over 120 days, and I have not received a refund or clear instructions on how to apply this credit to my other loans. -- - Timeline of Events * XX/XX/XXXX : Overpayment of {$1500.00} made on loan XXXX Direct Loan Subsidized * XX/XX/XXXX : Following initial inquiry online submission : MOHELA stated : All refunds are issued by the XXXX Department XXXX XXXX Treasury and XXXX take up to XXXX business days. * Current status : This timeframe has now been exceeded and no refund has been received * Since then : * Submitted XXXX separate inquiries : * initial inquiry + follow up on XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX * Made multiple phone calls to XXXX * Have been unable to reach a live representative despite repeated attempts. Multiple prompts direct me to submit online inquiry * Most recent response from MOHELA : * States that credit balances will be applied to any remaining loan balance first with highest interest and handled in the order they are received * Does not confirm whether my credit is actively being processed * Does not provide a timeline or actionable steps for me to apply the balance * Does not explain how this applies to accounts with active autopay which i have enabled and don't want to be penalized for disabling if that is how i should apply the credit. -- - Problem MOHELA is currently holding {$1500.00} of my funds without resolution and has provided conflicting and incomplete information : * Initial communication indicated a refund timeline of XXXX business days, which has now been exceeded * Follow-up communication suggests the credit XXXX instead be applied to other loans, but provides no confirmation or instructions * I have multiple loans with MOHELA, yet no guidance has been provided on how to apply this credit across accounts * I have been unable to reach a live representative to resolve this At this point, I do not know whether my funds are being refunded, how to apply to other loans, or simply being held without action. -- - Impact * My funds have been held for an extended period beyond the stated refund timeline * I currently have active autopay on other loans, which XXXX result in additional payments being withdrawn instead of using the available credit * I have spent significant time attempting to resolve this through MOHELAs support channels without success * The lack of clarity prevents me from managing my loan payments appropriately -- - Requested Resolution I am requesting that MOHELA : * Immediately redund my {$1500.00} credit * Contact me directly to confirm how to apply to other loans * If a refund is being processed, provide a specific timeline and status update * If the credit is to be applied to other loans : * Provide clear, step-by-step instructions on how this is executed * Confirm how this interacts with autopay and whether any action is required on my end * Provide access to a qualified representative who can resolve this issue directly -- - Additional Notes MOHELA has provided inconsistent and non-actionable responses while holding a significant overpayment for an extended period. The inability to access support or receive clear guidance has prevented resolution through normal channels.

Company response to consumer: Untimely response