Consumer complaint received 2025-03-01 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: MOHELA
State: NC

Complaint narrative:
I consolidated my loans last year and sent an XXXX application XX/XX/XXXX. Mohela has yet to process this application with the various court injunctions. On XX/XX/XXXX I received a letter explaining my account would be placed into a forbearance with 0 % interest and would not be charged any additional bills due to more than 60 days passing since receiving my XXXX application. Despite this letter, Mohela continues to bill my account and has done so from XXXX to present. They have also allowed a significant amount of interest to accrue during that same time. Due to their failure to update my account in a timely manner I face penalties regarding my credit score. I have called Mohela 3-4 times in the last month with some representatives refusing to put my account into the forbearance I was told I would be placed into several months ago. I called Mohela on XX/XX/XXXX and was placed on hold for 6 + hours until I was able to speak with an advanced agent. This agent told me she would bring this concern to her supervisor and have this issue corrected within 10 days. The agent stated my account would be brought current and corrected with the removal of interest moving forward. She also stated XXXX ( XXXX XXXX XXXX ) would be responsible for looking at my account retrospectively and taking off any interest that accrued from XXXX to now. It has been 8 days and I have yet to see these changes reflected in my account. Mohela has not abided by rules laid out by federal student aid and continues to wrongfully charge my account as well as delay processing of my XXXX application. They have made repayment impossible as I am often provided with wrong information or my concerns are completely brushed off while they take their time doing nothing for my issue. Again, my XXXX application was received by Mohela last year between XXXX and the company has not assisted in any way in helping to make repayments. Everything has been a stalling technique. Mohela has consistently shown neglect, incompetence and mishandling of my account and millions of others with no consequences. They have caused significant distress as a loan servicer. As a resident doctor I have sacrificed hours of time that should be designated to patient care being bounced from representative to representative in attempts to make contact with the loan servicer. There here have been occasions where my call has been ended in the middle of discussion and I'm directed to a a customer satisfaction survey, inappropriately. Mohela poses a danger to millions of borrowers and has failed to showcase an urgency in providing assistance. Also on XX/XX/XXXX they notified me of a new repayment schedule under a standard repayment plan which I have told Mohela plenty of times that I can not afford. Yet they continue to place me into standard repayment while delaying processing of my XXXX. May of this year will mark one year since the application was completed and still not processed. I now owe nearly {$5000.00} in billas due to their failure to process and abide by guidelines set by XXXX, as well as failing to place me in a general forbearance which they said they would do XX/XX/XXXX.

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