Consumer complaint received 2025-01-28 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: PA

Complaint narrative:
At the beginning of COVID, I was informed that making payments and being on the forbearance would count twice for the time period towards PSLF forgiveness. In XXXX XXXX, MOHELA advised differently and I requested a refund of all payments made to both of my loans. I followed up by phone on a regular basis and was told it's a process and to be patient. The first payment was received XX/XX/XXXX and separate checks continued up until XX/XX/XXXX. There has not been any money returned since those last checks. 

The amount outstanding is {$11000.00} based on my calculations. During the last year, I have continued to contact MOHELA requesting the remaining amount and it has been a circle that has yet to receive an outcome. The hours spent on the phone, sending emails, providing the requested documentation has been a consistent waiting game. Then when I do get to talk to someone, that conversation does not yield anything better. I have to explain the situation over and over to each new person answering the call, wait while they read up on the history, then to be told I need to speak to a supervisor. I get transferred and voice mail picks up EVERY time. I leave a voice mail, wait for return call which has only occurred once. I understand their 'business hours ' are also my business hours ; but I make myself available, pausing from my job. 

I sent an request to the Ombudsman last year and did not hear anything, not even acknowledgement of my complaint. I have voiced my complaints, frustration, and time spent on this topic repeatedly to MOHELA to not receive any acknowledgement or urgency or consistency. 

During COVID, the loans were at different servicers. MOHELA continues to tell me that they can not refund money not paid to them ; yet they did refund some payments made to a few of the servicers, just not all. The time I was making payments to XXXX seems to be outstanding amounts. I have sent in bank statements, I contacted XXXX myself and they provided the history to me which I then gave to MOHELA. And then had to give them again when they moved to a new system. At times MOHELA has explained it is FSA holding up the amount, then at another time, it's because the payments were made at another servicer. How the story can keep changing is beyond my grasp.

The amount owed is not a few hundred dollars, even if it was - it is still owed to me. My loans continue to be in good standing, making payments ahead of scheduled due dates. The other issues I've experienced with MOHELA are small in size compared to this amount outstanding. How my current payments are applied do not make sense since the increase to my loans was before I received the refund. When I mentioned it to a representative at MOHELA, they assured me that recalculation would occur once all refunds are received. Which makes me think they realize all money has not been returned.

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