Consumer complaint received 2025-04-28 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA
State: FL

Complaint narrative:
Subject : Student Loan : Formal Complaint Against MOHELA for Mismanagement of Income-Driven Repayment Application, False Interest Representations , and Improper Interest Accrual I am writing to formally file a complaint against MOHELA regarding the mishandling of my federal student loans following my application for an Income-Driven Repayment ( IDR ) plan and subsequent actions related to interest accrual. 

Summary of Issues : I applied for an Income-Driven Repayment ( IDR ) Plan on XX/XX/XXXX. ( Screenshot attached in documents from XXXX ) Subsequently, due to changes in government policy, the SAVE Plan and other IDR processes were paused. 
I was informed by both MOHELA and the U.S. Department of Education ( Federal Student Aid ) that after XXXX  days of processing forbearance ( with interest accrual ) from my application date, I would automatically be placed into a general forbearance with XXXX XXXX interest while my application was pending. 

Despite these assurances, interest continued to accrue on my loans. 
I called Mohela in XXXX of XXXX raising these issues, they told me that I need to start my XXXX day processing forebearance in XXXX and that it will go to XXXX at which point I will be at XXXX  XXXX interest. ( Even though I applied for Income driven application in XXXX ) On XX/XX/XXXX, I received an official letter on Mohela 's Inbox confirming that I was placed in 0 % interest forbearance. However, my account continued to accrue interest at a standard rate. ( Letter attached in Documents ) I contacted MOHELA and Federal Student Aid multiple times to report the error. Despite being reassured that the issue was resolved, the interest never stopped accruing. 
In XX/XX/XXXX, I received another letter again affirming that my loans were at XXXX XXXX interest. Still, no correction occurred, and interest charges continued. ( Attached Document in the Document Section ) Due to fear of growing debt, I made a payment of approximately {$5200.00} in XX/XX/XXXX, which was applied entirely toward accumulated interest that shouldn't have been accruing in the first place In total, I have accumulated over {$15000.00} in interest charges that, according to the guidance provided, should never have accrued. 

Supporting Documentation ( attached ) : Initial IDR application confirmation ( XX/XX/XXXX ) Letters from XX/XX/XXXX and XX/XX/XXXX confirming XXXX XXXX interest Nature of Complaint : Misinformation and False Representations : MOHELA repeatedly provided false assurances about my loan status and interest rates. 
Financial Harm : I incurred over {$15000.00} in unnecessary interest charges and was forced to make significant payments based on misrepresentations. 
Negligence : Failure to properly implement the promised 0 % interest forbearance after multiple notices. 
Emotional Distress : Prolonged XXXX, uncertainty, and financial strain caused by MOHELAs mishandling. 



Thank you for your attention to this matter.

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