Consumer complaint received 2024-12-23 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:
I have been trying to collect a refund for a cancelled loan and overpayment to this company since XXXX. On XX/XX/XXXX, the XXXX XXXX XXXX  payment is made to XXXX from MOHELA in the amount of {$2700.00}. On XXXX, the MOHELA website would not allow me to set up autopay to receive XXXX % interest rate reduction, so I made a XXXX time payment of {$59.00} on the website. On XXXX, a private loan payment of {$13000.00} was made to XXXX for the remaining XXXX XXXX XXXX balance. On XX/XX/XXXX, I was issued a refund from XXXX for the XXXX XXXX XXXX overpayment of {$3600.00}. On XX/XX/XXXX, I call XXXX - My request ; do not pull XXXX XXXX XXXX  payment from MOHELA loan - Their response ; complete a financial aid adjustment form and the XXXX XXXX XXXX will be paid with private loan only - My actions ; Financial Aid adjustment form completed and sent to XXXX. On XX/XX/XXXX, I paid the remaining account balance of {$2700.00} to MOHELA via their website. Funds were withdrawn from my checking account that day. XXXX I placed multiple calls to MOHELA to explain that the XX/XX/XXXX payment of {$2700.00} was not appearing on my account online. I was told that because the funds were received within the XXXX day cancellation period, they would be returned to me automatically within XXXX days. On XX/XX/XXXX, XXXX notified me of an additional XXXX XXXX tuition payment due, as they have returned the initial disbursement of {$2700.00} to MOHELA. I was also charged {$130.00} in late payment fees. On XX/XX/XXXX, XXXX informed me that completing the XXXX XXXX adjustment form cancels XXXX % of the loan vs. XXXX XXXX Tuition only. On XX/XX/XXXX, I called MOHELA. The call duration was XXXX minutes and most of my time is spent waiting for an associate to answer and being placed on hold. The XX/XX/XXXX payment of {$2700.00} still did not appear on my account online. I was told again that funds received within XXXX day cancellation period would be returned to me automatically within XXXX  days. On XX/XX/XXXX I called XXXX and was told that balance due per my request, advised late payment fees of {$130.00} would be refunded once my payment posts. On XX/XX/XXXX, I paid XXXX {$2700.00} for the outstanding Fall XXXX tuition balance. On XX/XX/XXXX, I called MOHELA, waited for XXXX minutes, but was unable to connect with an operator. I requested a call back, but my call was not returned. On XX/XX/XXXX I called MOHELA again and waited for XXXX minutes, but was unable to connect with an operator. I requested a callback, but my call was not returned. On XX/XX/XXXX, I filed a complaint with the Department of Education and requested their assistance. On XXXX, I requested a payment refund via the MOHELA website. I received a response advised to call and speak with an operator to have my issue resolved. On XXXX I called MOHELA. The duration of the call was XXXX minutes. The operator stated there was no record of the {$2700.00} payment or a refund request on my account. She escalated to a supervisor and told me she would call me back in XXXX business days. I have not received a call. On XX/XX/XXXX I called MOHELA. I was on the phone for XXXX minutes. I was told I will be required to wait an additional XXXX days for my refund, as they just received my request on XXXX. On XX/XX/XXXX, I got an email from MOHELA to advise that XXXX refunded them. Now my XX/XX/XXXX payment appears on the website, but does not reflect the XXXX day cancellation period. My loan balance is {$0.00}. I have not received a refund for my payments.

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