Consumer complaint received 2025-01-14 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: IN

Complaint narrative:
On XX/XX/2024, MOHELA performed an account rectification and I received a letter with my corrected balances. A copy of this letter will be provided upon request. 

On XX/XX/2024, interest capitalized on my loans. I contacted MOHELA and was informed this was an error. This error was corrected. 

On XX/XX/2024, I received a letter from the XXXX XXXX stating my loans were being placed into a forbearance with 0 % interest and that no interest would accrue during this forbearance. A copy of this letter will be provided upon request. I also received my XXXX billing statement which reflected the correct totals for interest and principal for all loans. Interest continued to accrue so I contacted MOHELA by phone and a representative informed me the problem would be corrected and the incorrectly accrued interest would be backdated. 

On XX/XX/2024, I contacted MOHELA via email because interest was still accruing on my account. I received a response that the problem has been rectified even though interest was still accruing. 

On XX/XX/2024, interest again capitalized on my accounts. I contacted MOHELA and was informed the capitalized interest would be removed and the interest that incorrectly accrued would be backdated and payments would be reapplied. 

On XX/XX/2024, interest capitalized on my accounts again. I contacted MOHELA and the representative was able to correct the capitalized interest to reflect {$0.00}. But I was told the incorrectly accrued interest was still being reviewed and it would take some time to receive a resolution. 

In XXXX, I was placed into the XXXX forbearance with 0 % interest. The XXXX interest issue was still not addressed and interest continued to accrue. On XX/XX/2024, I contacted MOHELA to let them know interest was still accruing and nothing had been done to address the incorrectly accrued interest. I received a response saying my account was in a XXXX forbearance and explaining what the FORBEARANCE was for and why my billing statements would be delayed. 

On XX/XX/2024, interest capitalized on my account and interest was still accruing. I contacted MOHELA by phone and spoke to a representative that informed me they could correct the interest capitalization but my account would need to be corrected by a supervisor to remove the interest that accrued while I was in the 0 % forbearance and to ensure the payments I made during that time were correctly applied to my account. I was told it would take some time for this to be completed as there had been many issues like what I was experiencing. I contacted MOHELA in XXXX and was told by a representative the request had been elevated and to allow more time before calling back. 

On XX/XX/XXXX, I contact MOHELA via email because the incorrectly accrued interest was still not addressed. I received a generic response providing information about the XXXX forbearance, but my problem was not rectified. 

On XX/XX/2024, interest capitalized on my account again and interest was still accruing. I called and was transferred to a supervisor named XXXX. XXXX was able to review the billing statements in my account and determine not all of my loans had been placed into the 0 % forbearance which was why interest was still accruing. He was able to set the interest rate to 0 % on all of my loans, but was unable to correct the amounts. He could not explain why interest had capitalized several times in a few months. XXXX put in a request to correct my interest and principal balances to reflect the correct amounts. 

On XX/XX/2024, I contacted MOHELA because the interest and principal balances were still not corrected. 

On XX/XX/2024, I contacted MOHELA because the interest and principal balances were still not corrected. 

On XX/XX/2024, I contacted MOHELA because the interest and principal balances were still not corrected. 

On XX/XX/2024, I contacted MOHELA because the interest and principal balances were still not corrected. 

On XX/XX/2024, I contacted MOHELA because the interest and principal balances were still not corrected. 

On XX/XX/2024, I contacted MOHELA because the interest and principal balances were still not corrected. 

On XX/XX/2024, I contacted MOHELA because the interest and principal balances were still not corrected. I was transferred to the supervisor XXXX again. He was able to locate the problem immediately and determine the correct interest and principal balances. 

On XX/XX/2024, I contacted MOHELA because the interest and principal balances were still not corrected. 

On XX/XX/2024, I contacted MOHELA because the interest and principal balances were still not corrected. 

At this point, I have spoken to several supervisors at MOHELA, including XXXX, and all have informed me that my total interest is {$3000.00}, and the total principal is {$150000.00}. The individual loans are as follows : Loan XXXX : Total interest- {$1400.00}. XXXX Principal- {$22000.00}. Loan XXXX : Total interest- {$1200.00}. XXXX Principal- {$20000.00}. Loan XXXX : Total interest- {$110.00}. XXXX Principal- {$6600.00}. Loan XXXX : Total interest- {$0.00}. XXXX Principal- {$3400.00}. Loan XXXX : Total interest- {$220.00}. XXXX Principal- {$24000.00}. Loan XXXX : Total interest- {$64.00}. XXXX Principal- {$20000.00}. Loan XXXX : Total interest- {$0.00}. XXXX Principal- {$8000.00}. Loan XXXX : Total interest- {$0.00}. XXXX Principal- {$4500.00}. Loan XXXX : Total interest- {$0.00}. XXXX Principal- {$5400.00}. Loan XXXX : Total interest- {$0.00}. XXXX Principal- {$11000.00}. Loan XXXX : Total interest- {$0.00}. XXXX Principal- {$10000.00}. Loan XXXX : Total interest- {$0.00}. XXXX Principal- {$5300.00}. Loan XXXX : Total interest- {$0.00}. XXXX Principal- {$10000.00}. 

This is a substantial difference from what MOHELA is reporting. Additionally, multiple MOHELA supervisors have done an accounting and determined because there are multiple loans, some loans were placed in the XXXX  forbearance while others were not. The supervisors all informed me this has been a reoccurring issue for people with multiple loans. I have been told since I was first placed on the XXXX administrative forbearance with 0 % interest in XXXX and interest continued to accrue, that this issue would be corrected. Then when I was placed into the XXXX forbearance in XXXX and interest continued to accrue, I was told the payments I made would be reapplied to the account and the accrued interest would be removed. Yet somehow I continue to get a generic response from MOHELA that no interest accrued during the XXXX forbearance and my interest is {$4000.00}. Despite speaking to multiple supervisors at MOHELA that have found that interest did accrue, MOHELA continues to respond to complaints stating no interest can accrue during the XXXX forbearance. It seems just because MOHELA states that no interest accrued, no one will do an investigation to see that MOHELA is wrong and not doing it's job properly. It's concerning that when I call and speak to a supervisor, my issue is immediately found, but MOHELA continues to deny the problem. It is even more concerning that the company is mishandling loans and no one will do anything about it. To further complicate the matter, many people just believe MOHELA because they trust MOHELA will properly service their loans. The ramification of this massive accounting error has resulted in incorrect interest, incorrect principal balances which increases the amount of interest i will pay, and incorrect credit reporting. It's pathetic that I reep all of the consequences of MOHELA 's fraudulent behavior and no one can or will help me.

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