Consumer complaint received 2025-03-17 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:
Since XX/XX/XXXX, Ive been enrolled in the SAVE plan with 0 % interest. All outstanding interest was paid in full by me in XX/XX/XXXX. However, Mohela has repeatedly altered my account history by retroactively adding interest to Loans XXXX, XXXX, and XXXX beginning on XX/XX/XXXX. 

On XX/XX/XXXX, I made a {$1200.00} payment, with {$150.00} allocated to XXXX XXXX, which showed a balance of {$3900.00}. After payment, the balance should have been {$3700.00}, but Mohela reported {$3700.00}. Similarly, Loans XXXX and XXXX had balances of {$1400.00} and {$1500.00}, respectively, but XXXX records now show added interest payments dated XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XXXXinterest that did not exist under my 0 % SAVE plan. 

I have downloaded account histories and taken screenshots before and after these fraudulent changes. Payments clearly designated toward principal were improperly applied to interest and account histories have been altered. Some documents I've saved show the following changed statements just days apart from each other. 

Loan XXXX : XX/XX/XXXX Statement : XX/XX/XXXX : {$4.00} paid to interest XX/XX/XXXX : {$0.00} paid to interest XX/XX/XXXX : {$0.00} paid to interest XX/XX/XXXX : {$0.00} paid to interest XX/XX/XXXX Statement : XX/XX/XXXX : {$24.00} paid to interest XX/XX/XXXX : {$7.00} paid to interest XX/XX/XXXX : {$4.00} paid to interest XX/XX/XXXX : {$2.00} paid to interest XX/XX/XXXX Statement : XX/XX/XXXX : {$51.00} paid to interest XX/XX/XXXX : {$11.00} paid to interest XX/XX/XXXX : {$4.00} paid to interest XX/XX/XXXX : {$2.00} paid to interest Loan XXXX : XX/XX/XXXX Statement : XX/XX/XXXX : {$5.00} paid to interest XX/XX/XXXX : {$0.00} paid to interest XX/XX/XXXX : {$0.00} paid to interest XX/XX/XXXX : {$0.00} paid to interest XX/XX/XXXX Statement : XX/XX/XXXX : {$8.00} paid to interest XX/XX/XXXX : {$8.00} paid to interest XX/XX/XXXX : {$5.00} paid to interest XX/XX/XXXX : {$3.00} paid to interest XX/XX/XXXX Statement : XX/XX/XXXX : {$51.00} paid to interest XX/XX/XXXX : {$9.00} paid to interest XX/XX/XXXX : {$5.00} paid to interest XX/XX/XXXX : {$3.00} paid to interest These inconsistencies are concerning, especially since I have documentation from MOHELA dated XX/XX/XXXX showing my loan balances with 0 % interest, as well as forbearance letters from XX/XX/XXXX and XX/XX/XXXX. Additionally, I have screenshots from StudentAid.gov reflecting the correct balances before these unauthorized adjustments. 

Despite contacting Mohela multiple times, Ive been met with 5+ hour phone wait times and no resolution. When I was able to get through to MOHELAs customer service on XX/XX/XXXX, the representative was unable to assist, stating that they could only view the most recent, altered figures. This lack of resolution is unacceptable. 


I am requesting immediate correction of my balances for Loans XXXX, XXXX, and XXXX, removal of retroactively added interest, and a formal explanation. Mohelas mismanagement has caused financial and emotional distress.

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