Consumer complaint received 2024-11-23 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: AL

Complaint narrative:
I am writing in efforts to gain a resolution to issues with my student loan including PLSF and consolidation. I applied for public service loan forgiveness. I received confirmation of my application on XX/XX/XXXX and XX/XX/XXXX. On document 1, I was advised to apply for consolidation because the direct loans listed on the document did not qualify for PSLF. I applied for consolidation in accordance with the instructions on the form. The loan types listed on the form total roughly {$62000.00}. Please see the attached documents one and two of the attached documentation. I received a letter on XX/XX/XXXX stating that I was not yet eligible for forgiveness of the loan sequence 1, disbursed on XX/XX/XXXX ( document 3 ). I then called and was informed that Mohela had not yet completed all calculations under the limited waiver payment count. 

On XX/XX/XXXX, I received a letter from XXXX advising that my consolidation loan had been processed. The XXXX  letter ( document 4 ) gives a detailed break down of all loans existing prior to consolidation and prior to forgiveness. The XXXX loan consolidation document lists a total indebtedness of {$120000.00}. This amount included the subsidized loan amount of {$59000.00}. It does not include some unsubsidized amounts which were not included because my children were still in school and the loans were showing in deferment. I was told that I would have to take those unsubsidized parent loans out of deferment in order to have them included in the consolidation. I had the additional unsubsidized loans removed from deferment, and then I completed the form, Direct Consolidation Loan Request to Add Loans, on XX/XX/XXXX ( Document 6 ). On Document 6, I only asked that three disbursements be added for consolidation. The amounts of those disbursements were {$8200.00}, {$13000.00}, and {$25000.00} as shown on the document. This would bring the total indebtedness to {$140000.00}. This amount includes the subsidized loan amount of {$59.00}, XXXX referenced above. 

On XX/XX/XXXX, I received a letter from Mohela advising that loan sequence XXXX for loan program DLSCNS, disbursement date XX/XX/XXXX, in the amount of {$57000.00} had been forgiven ( Document 5 ). I was advised that Mohela would automatically adjust this amount and that there was nothing that I would need to do. If you subtract {$57.00}, XXXX from the total indebtedness of {>= $1,000,000}, the balance is {$87000.00} roughly. 
This amount is not what is currently reflected on Mohela or on the studentaid.gov site. It appears that the first consolidation was added in to a subsequent consolidation almost doubling the amount that I should owe. When I sought to add loans to my consolidation, a mistake was made in the calculations. I only approved the addition of the three loans referenced above in the amounts of {$8200.00}, XXXX, and {$2500.00}. Either additional amounts were XXXX  added in with the consolidated loan without my authorization or the forgiven amount was not subtracted. 

Either way the balance is almost double what it should be and interest is accruing on an inaccurate amount causing my payment to be almost twice what it should be. 

I have filed numerous complaints and made more than 20 calls to try and get this corrected spending numerous hours on the telephone.. I was unable to begin making payments because the representative could not advise me of what the correct amount would be to pay. Although I have been told at least three times by different managers that my account would be audited, this has not been done. I was told that I would be placed in administrative forbearance while this was handled, but my account is showing past due in the thousands. This could potentially affect my employment and credit.

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