Consumer complaint received 2024-03-26 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: NV

Complaint narrative:
1. Applied for PSLF forgiveness ( XXXX and XXXX ) via the department of education and was never notified of loan forgiveness or payment counts applied to my student loans, despite 1 year of service with XXXX and 1.5 years of employment in a nonprofit organization ( with more pending review ), as well as applicable payment pause payments during COVID-19 relief to be applied to the total payment count. MOHELA has never provided a response to my applications for forgiveness or acknowledgement of its efficacy, and demanded that payment restart on all loans in XXXX and again in XXXX. 
XXXX. Payments incorrectly requested from the borrower, and subsequently made during XXXX due to fear of credit repercussions, have not been refunded or applied to payments required/ restarted incorrectly in XXXX. 
XXXX. Payments made with the Segal Education Award in XXXX have been marked as received and then accepted by the institution ( MOHELA ) but do not show under payment history on the account, and the account has remained in an incorrect past due status despite repeated messages to customer service via message/in writing correct the status after each payment has been made. 
XXXX. After each payment was made in a timely manner with the Segal Education award, I sent a direct message to the institution ( MOHELA ) with the information about the payment made ( date, amount, account number, directions for application ) and the acceptance date from the institution, as well as documented receipt of payment and acceptance. Each message asks why said payment was not yet posted to the account though it was documented as received by MOHELA. MOHELA has responded each time and stated that they had not received the payment, even when provided with documentation showing that they had, including that the date of acceptance proceeded the payment due date, making the payment timely in both its submission and acceptance. MOHELA has continued to leave the account in past due status for nearly 90 days, with no payments applied, even though payments were and are being made in a timely manner and accepted by the institution before the payment due date each month. This has occurred in XX/XX/XXXX, XX/XX/XXXX, and for the pre-payment made for XX/XX/XXXX. While XX/XX/XXXX was paid directly via bank account, MOHELA has incorrectly claimed that this was an application of the education award, though the payment history shows otherwise. 
XXXX. At this point, I am concerned MOHELA will attempt to damage my personal credit claiming payments have never been made, though documentation of payments made, dates of receipt and regular messages have been submitted to correct this issue. Customer service has continued to provide incorrect information or no information, and has no information available on their website indicating the proper process or timelines for submitting repayment using the Segal Education award via XXXX ( XXXX ). Customer service has also submitted incorrect information in response to my inquiries, claiming payments were applied from the education award when they never have shown as applied on the account or as part of the payment history.

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