Consumer complaint received 2024-07-26 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: PA

Complaint narrative:
I am a federal student loan borrower participating in XXXX  XXXX XXXX XXXX, and my XXXX  year public service will be complete this XX/XX/year>, at which time the entire balance of my federal student loans are due to be forgiven. Mohela is my loan servicing company, and the company has made mistakes with my account that have resulted in my account being marked as having overdue payments in XXXX and XX/XX/year>, mistakes that have been acknowledged to be on the Mohela side during multiple phone calls with the company, yet the company continues to deflet my concern and make excuses as to why they have not yet fixed this extremely simple error on their end. 
Not only are the companys actions indisputably negligent, I believe that the company is operating under the deliberately sinister intention of disrupting my loan account in attempt to maximize profit. At best, this fiasco is resulting in financial damage to me the consumer. But in my case the stakes are exponentially higher, because this fiasco created entirely by Mohela could also result in the catastrophic loss of my XXXX XXXX XXXX XXXX, something that would devastate and destroy my life. 
I make my case below, and attached you will find full documentation to verify and support my claim. 
I have documentation and verification from my bank that I made my full payments on time ( the XXXX day of the month in XXXX and XX/XX/year> ) ( documentation attached ) and that those checks have been processed. So how did it happen that my account was marked delinquent, you ask? An explanation of the companys set-up that directly led to my account being marked late follows. 
In the weeks prior, I was informed that my existing loan account is switching to a new Mohela loan account platform to " improve my customer experience, '' and I was instructed to continue making payments to my existing account in the meantime ( which I did, including a payment that was sent on XX/XX/year> ). On this same day XX/XX/year> I received an email from Mohela ( email is attached ) that the account transition was complete, which meant I had a now new account number. To this day, the company has not yet posted my XXXX payment toward my new account number, which has resulted in my account being marked as delinquent. And moving forward, my account is also inexplicably marked as delinquent for the month of XXXX despite my full, on-time payment for XXXX being sent to the new account number and new mailing address, It is entirely the responsibility of Mohela to manage and account for full, on-time payments received in a timely manner and to post them as paid on time. In fact, one could argue that this is the companys ONLY JOB. 
After being given the run-around on XXXX calls with customer service representatives deflecting my concern and refusing my request to speak with a manager, I was finally able to speak with a XXXX, XXXX ID XXXX. XXXX continued to deflect my concerns. When I pushed for the specific reason for the delay, she told me that the company had hired an outside company to process payments, and because of this these payments were taking a longer than usual time to be processed. How can this be the reason for the delay, when I verified with my bank that my checks had already been cashed? XXXX could not provide a response to this question, offering no assistance and no solution, in fact she told me that my only option was to continue monitoring my account. She could not give me a time frame in which I should expect a resolution. She could not guarantee that this would not continue happening each month. She could not comment on whether or not this would ruin my XXXX XXXX XXXX XXXX in XXXX. 
One thing that XXXX did mention, however, was that I could participate in auto pay, but that it takes a few months to take effect. Interesting that the mere fact that the company had unnecessarily initiated a new account number for me, meant that I would not be able to enroll in auto pay until I had the new account number and information. Information that I was not given until XX/XX/year>, at which point my account had already been marked as late. So there was no opportunity for me to have prevented this fiasco, ostensibly due to delays in people opening checks and posting them to the account And now, because my account is messed up, I can not enroll in auto pay in attempt to prevent future messes on their behalf, until they clean up their mistake, which they refuse to do. 
This companys irresponsible management of my account is nothing short of illegal, and the position this company has forced me into is playing roulette with my loan forgiveness. And ( given how my loan balance has ballooned from approx. $ XXXX to $ XXXX despite my enormous monthly payments for the past XXXX  years since I consolidated for the purpose of PSLF ), playing roulette with my loan forgiveness is playing roulette with my life.

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