Consumer complaint received 2025-01-29 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:
Automatic payments are still not being processed by due dates despite repeated calls to the servicer, Mohela. I also believe I have been missing interest rate discounts. This has been going on since I changed bank accounts in XX/XX/XXXX. After my last phone call with Mohela, they suggested that I refrain from re-enrolling in auto payments since they say it takes XXXX billing cycles for auto-payment to go into effect. I have done that and auto-payments still are not being processed. Most recently, an automatic payment that was due XX/XX/XXXX was not processed automatically. 

The following is correspondence from myself to XXXX. The XXXX XXXX XXXX. closed my case on XX/XX/XXXX with no resolution : Case Information Date Submitted XX/XX/XXXX Category Repaying My Aid Subcategory Dealing with XXXX XXXXrvicer Case Description Auto payment was debited on XX/XX/XXXX from a checking account that I no longer use instead of my new checking account. Payment went delinquent due to insufficient funds. New login to Mohela was required to be set up since they transitioned to a new loan servicing platform. My new checking account was not listed in the auto payment after setting up the new login. I can not reach any customer service representative at Mohela to resolve this in a reasonable amount of time because wait times on the phone have been up to an hour long with no option for a call back. 

XX/XX/XXXX XXXX XXXX XXXX have email confirmations of auto pay enrollment dated XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and today, XX/XX/XXXX. No automatic payments have successfully been been processed on time since then. 

XX/XX/XXXX XXXX XXXX XXXX received another past-due email notification. Auto-payment was not processed again. XXXX was due on XX/XX/XXXX and I made a manual payment on XX/XX/XXXX. I also re-enrolled in auto-payment. Since I've enrolled with the new bank account, every payment has been missed on the due date. 

XX/XX/XXXX XXXX XXXX Another payment was missed on the date it was due despite verifying having been enrolled in automatic payment after calling Mohela last month. Another one-time payment was made today, and auto-payment was re-enrolled. This is now a persistent issue. 

XX/XX/XXXX XXXX XXXX  Another payment that was due on XX/XX/XXXX was not processed on-time even though the new Mohela XXXX on XXXX stated that the amount due would automatically be debited on the due date. I also ensured that my old checking account had sufficient funds. I manually made the payment today XX/XX/XXXX. The Mohela portal still says that a payment is scheduled for XX/XX/XXXX from my old checking account. There are more than sufficient funds in both my old and new accounts. This is now 2 payments that I am not sure will qualify towards PSLF forgiveness because they were not processed automatically on their scheduled due dates. 

XX/XX/XXXX XXXX XXXX  After an hour on hold with Mohela, they did confirm that my payment was processed and would not be reported to credit bureaus. However the representative stated that only XXXX XXXX XXXX could validate that the payment would be credited towards qualifying PSLF payments. Furthermore, they informed me that my new account would not take effect for 2-3 billing cycles and I would have to make payments manually until then. When I asked if being forced to make manual payments would cost me the 0.25 % interest rate discount for auto payment, they said that it unfortunately would until automatic payments took effect. This does not strike me as a fair business practice compared to most automatic billing agreements. 

XXXX Case # XXXX XX/XX/XXXX Dear # # # : Thank you for contacting the XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. 
We have received your inquiry regarding the XXXX XXXX XXXX XXXX that is currently being serviced by MOHELA. 
Your concern, as we understand it, you are concerned regarding your submitted XX/XX/XXXX payment placed on your student loan balance does not reflect as posted. 
MOHELAs records indicate payment was received and has since posted to your student loan balance XX/XX/XXXX, for {$120.00}. 
Processing time can take from 2-4 business days to reflect posted to your student loan balance. Please note going forward when payment is not received on your due date a past due notice is generated and sent. Negative credit reporting only occurs when your account is delinquent 90 days or more.

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