Consumer complaint received 2025-07-31 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: NJ

Complaint narrative:
XX/XX/XXXX : I make my final payment before being placed on forbearance. Total payment is {$470.00} with {$190.00} going to principal and {$280.00} going to interest. All transactions shown after that on my account are only to show {$0.00} capitalized interest ( with last transaction in XX/XX/XXXX ). 

XX/XX/XXXX : Federal court put a stay on the SAVE plan. 

XX/XX/XXXX : I received a letter from Mohela stating that my loans will be put into a 0 % interest forbearance. 

XX/XX/XXXX : XXXX XXXX XXXX shows in their records that I am on a 0 % interest forbearance while the case continues through the courts as of this date. 

XX/XX/XXXX : I submitted a case to XXXX XXXX XXXX in regards to my loans with Mohela showing as Past Due. The case was closed and there is no record of their response on the XXXX website. 

XX/XX/XXXX : I received a response from Mohela to a message I sent due to my student loans showing as XXXX XXXX. 

XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX : I receive messages from Mohela stating that my repayment schedule has changed with details of new monthly payments and start dates ( in early XXXX ) XX/XX/XXXX : I received a response from Mohela in regards to a message I sent about XXXX of XXXX loans showing as Past Due. I also submitted a case with XXXX XXXX XXXX on this date and the case was closed with no record of their response on the XXXX website. 

XX/XX/XXXX : I receive a message from Mohela that my loans are in forbearance but accruing interest at the rates listed in the letter ( which are all 0 % ). The balance owed on all of my loans that is shown on this letter is {$77000.00} with unpaid accrued interest to date showing as {$270.00}. 

XX/XX/XXXX : I receive my XXXX tax statement that shows the student loan interest paid in XXXX to my lender as being {$3500.00}. 

XX/XX/XXXX : I receive a letter from Mohela confirming that I remain in a 0 % interest forbearance as my student loans are all on the XXXX plan. 

XX/XX/XXXX : I receive a response from Mohela to a question about my loans showing that they have interest as well as showing an almost {$10000.00} increase in unpaid accrued interest on my account. There response was that XXXX borrowers are in a 0 % interest forbearance but that interest accrued prior to the forbearance will remain on my account but the last letter I received from Mohela showed only {$270.00} of unpaid interest on my account and I have received no statements showing when this additional interest accrued. 

XX/XX/XXXX : I sent a complaint to Mohela about the incorrect accrual of interest on my account, requesting that it either be updated or that they send a statement showing when the interest had accrued. I have still not received a reply from Mohela to my complaint. 

XX/XX/XXXX : I receive a message from Mohela that my loans are in forbearance but accruing interest at the rates listed in the letter. Only XXXX loan is showing as still being at 0 % interest ( since the 0 % interest forbearance is ongoing ) and the rest show the regular interest rates for my loans. The balance owed on all of my loans that is shown on this letter is now {$77000.00} with unpaid accrued interest to date showing as {$9600.00}. 

XX/XX/XXXX : I call Mohela and, after being on hold for almost XXXX hours, speak to a representative who first tried to tell me that my loans werent on a 0 % forbearance and then, after confirming they were on a 0 % forbearance, told me that the incorrectly accrued interest was a known system issue on the XXXX XXXX XXXX side and that it was going to be fixed by the time payments were required. I was given no exact timeline for when it was going to be fixed. I also submitted a case to XXXX XXXX XXXX on this date in regards to my incorrect interest. I received a response via email on XX/XX/XXXX ( no record of this response is on the XXXX website but the case shows as closed ). The response basically boiled down to Mohela is reviewing the interest accruing on your loans and will reach out once the review has been completed. They did reconfirm that my account is in a 0 % interest accruing forbearance until XX/XX/XXXX when interest will start accruing again. 

XX/XX/XXXX : As of today, the current total balance of my loans shows as {$84000.00} with {$6800.00} of that being the incorrectly applied unpaid accrued interest. I do not know why the balance of alleged unpaid accrued interest declined as I have not made any payments on it. I do not understand when this interest accrued as I have been in a 0 % interest forbearance since XX/XX/XXXX and I was making regular payments prior to the forbearance. I also do not understand how, between XX/XX/XXXX and XXXX XXXX while on a 0 % interest forbearance, I was able to accrue almost {$10000.00} in interest. I have received no statements supporting this interest accrual or updates on when this would be fixed from either Mohela or XXXX XXXX XXXX.

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