Consumer complaint received 2025-11-25 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: VA

Complaint narrative:
To whom it may concern.

I am requesting your direct intervention regarding a lump sum payment of {$5300.00} that was posted to my account at Mohela on XX/XX/XXXX and that should have been properly applied to my account. Despite repeated calls, written requests, and assurances from supervisors since XX/XX/XXXX, the payment has not been applied correctly to my bill that was due in XX/XX/XXXX. I was put on forbearance and now have a bill of {$960.00} due tomorrow ( XX/XX/XXXX ) and Mohela is still failing to put me into pay ahead status. If they can not do this, I must be refunded as I worry they have stolen my money and don't intend to ever re-apply the payment. 

Here are the facts : On XX/XX/XXXX, I was approved for the PAYE plan, with a monthly payment of {$960.00}. 

I instructed that my {$5300.00} payment be applied toward these monthly payments beginning XX/XX/XXXX, which should place me in pay-ahead status for 5.5 months through half of XX/XX/XXXX. ( {$5300.00} {$960.00} = 5.57 months ). I did this both on the phone with customer service AND in writing. 

Multiple supervisors told me this would be resolved, including a commitment that it would be fixed within 10 business days. That deadline passed, yet nothing has been corrected. Then they told me its actually 90 business days. That deadline has passed, yet they have still failed to update my account and apply the lump sum correctly. 


This failure left my account incorrectly overdue, despite my payment being made nearly a year ago. Finally, they put me in a forbearance but my bill is due in one day ( XX/XX/XXXX ) and my payments still dont show! I should not be penalized

for Mohelas inaction. I reached out to the Department of Education to file a complaint. They simply
stated that Mohela is working on it and closed my complaint. That is unacceptable. Mohela MUST provide a date that this issue will be fixed by!

I ask that you immediately : 1. Apply the {$5300.00} lump sum toward my PAYE monthly payments of {$960.00} starting with the XX/XX/XXXX payment. If thats not possible anymore, then lets start with XX/XX/XXXX and go 5.5 months with pay ahead status until XX/XX/XXXX. I work for the government and want to do public service loan forgiveness, so I want to start receiving credit for my payments! 

2. Place my account in pay-ahead status for 5.5 months. 


I have been trying to resolve this since XX/XX/XXXX, and I can not continue to spend hours on the phone being told different answers by different people without resolution. This matter requires urgent correction. 

Also, it is nearly impossible to speak to a supervisor at Mohela. First, you must wait on hold for hours. Then, you have to be approved to be able to speak to one. Then, the customer service representative will transfer you to a mailbox that drops the callwith the promise that they will contact you within 24-48 hours. I work in a XXXX all day and therefore, usually miss the call so it turns into phone tag. It is a complete waste of resources and time. I tried filing complaints and payment instructions in writing. The only response they ever give me is that they think the matter has been resolved because I talked to a customer service representative. Mohela is a truly awful company to deal with and I wish I could get my time back. 

Thank you for your immediate attention. 

Sincerely, XXXX XXXX

Company response to consumer: Untimely response