Consumer complaint received 2025-09-03 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: SC

Complaint narrative:
XX/XX/XXXX Since XXXX, XXXX ( so for 18 months now ) I have been trying to get answers from MOHELA regarding anomalies I have found in the financial accounting for the XXXX student loans they are servicing on behalf of the federal government. MOHELA has been unable or unwilling to provide answers. 

Here are a few examples of some of the irregularities documented in my account history, as excerpted directly from correspondence I have sent to MOHELA : ===== In XXXX, XXXX, and XXXX XXXX, 100 % of my payments made was applied to interest. If you look at my payment history, I always pay in round numbers. It is virtually impossible that the interest accrued on all XXXX of my loans came to a round number. 
===== The payments I made to loans XXXX and XXXX at the end of XX/XX/XXXX were inexplicably applied entirely to interest. I pay in round numbers. Even before digging into the books, you surely can see how unlikely it is that each loan accrued an even multiple of XXXX. More incomprehensible still is the payment I made that same month to loan XXXX : my account history shows that {$190.00} of the {$300.00} payment was applied to principle, but my principle balance did not change by a XXXX. 

The interest accrued on loans XXXX, XXXX, and XXXX fluctuates more than is even logical. There seems to have been some sort of adjustment made in XX/XX/XXXX to the interest accrued on loan XXXX. Loan XXXX likewise seems to have had some accounting adjustment made to it in XX/XX/XXXX. These irregularities are not in my financial favor. 

===== For the past 18 months, I have submitted a complaint with a request for answers every month when I complete my on-time payment. I have also called MOHELA several times. When my case rose to the highest customer service expert at MOHELA, I learned in speaking with her that she has no financial or information-technology background or knowledge. 

I learned this when I asked if some of the errors could have occurred when MOHELA was changing platforms. Twice since MOHELA took over servicing my loans, my account information and history has been unavailable for XXXX weeks or more as they change platforms. My payment history prior to XX/XX/XXXX is also shown as unavailable on MOHELAs website. I, however, have copies of my payment history. That history shows the anomalies I mentioned above as well as others. 

MOHELA has declined or neglected to respond to any of my inquiries since XXXX, XXXX. Earlier this year, I escalated my case through the Ombudsman website. I have now written to the Ombudsman XXXX times. I received XXXX reply, which was to my original inquiry of the Ombudsman. 

I am a former CPA and keep my own records of what I owe. MOHELA, as I mentioned, does not make my history available. Neither does it keep record of all of my inquiries ( or it makes them unavailable on the site. ) In total, I have sent XXXX inquiries and only XXXX of them are available on the site. 

I am not alone in my accusations of MOHELA for mismanaging my loans. In XXXX, XXXX, the XXXX XXXX XXXX XXXX published an article about a lawsuit in which the XXXX alleges XXXX illegally overcharged borrowers on their monthly student loan bills, failed to timely process paperwork, and actively misled borrowers about their student loan accounts. In XXXX, XXXX, MOHELA was once again sued. MOHELA is currently under investigation by the government for its fraudulent practices. 

Why is this company allowed to continue to abuse student borrowers? And what can borrowers do to shut them down? 

Sincerely, XXXX XXXX

Company response to consumer: Untimely response