Consumer complaint received 2025-06-11 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: IA

Complaint narrative:
XXXX sent MOHELA a payoff check in full on XX/XX/XXXX. 
I immediately stopped my auto pay with MOHELA to not overpay my account and have to deal with trying to get my overpayment back. 

My first message to them was on XXXX XXXX Original message : My consolidation loan services XXXX has sent full payoff payment for my account on XX/XX/XXXX. On your end it is not showing receipt of this payment. 

Please advise on when this payment was received and adjust my balance accordingly. I cancelled my autopay as to not overpay my account and have to deal with trying to get a refund from MOHELA. 


Their response : Subject : Payments or Bills Received Date : XX/XX/XXXX Thank you for contacting MOHELA, As of this writing, our records indicate that your account is currently 8 days delinquent with a past due amount of {$270.00}. The next payment is due on XX/XX/XXXX in the amount of {$550.00}. When an account is delinquent, phone calls and/or letters will continue until the account is current. 

A detailed list of options which may be available to you will be sent in separate correspondence. 

You may review these options by following the steps below : - Log into your account at XXXXStudentAid.gov - Select Repayment Options. 
- Select the option that best describes your situation On XX/XX/XXXX, a federal court issued a new injunction preventing the U.S. Department of Education from implementing the Saving on a Valuable Education ( SAVE ) Plan and parts of other Income-Driven Repayment ( IDR ) plans. As a result, the IDR and online Direct Loan Consolidation applications were temporarily unavailable. 

However, as of XX/XX/XXXX, the online IDR application is once again available for eligible borrowers to apply for the Income-Based Repayment ( IBR ) , Pay As You Earn ( PAYE ), and Income-Contingent Repayment ( ICR ) Plans. The online Direct Loan Consolidation application is also available again.

Although the IDR application is now available, loan servicers are still updating their systems in accordance with the courts actions. Servicers will begin processing applications in the near future. Updates will be provided as they become available at StudentAid.gov/saveaction, including when servicers resume processing IDR applications.

If you have any additional questions, please contact us toll free at XXXX. Our hours are Monday XXXX XXXXXXXX to XXXX XXXX, Tuesday through Friday XXXX XXXX XXXX XXXX XXXX, and Saturday XXXX XXXX XXXX XXXX XXXX XXXX Thank you, MOHELA My next step was to message them on XX/XX/XXXX : Original message : Sending this a second time as my original message was not responded to. 
I have gone through a consolidation company to pay my loans off and the payment was sent to you almost two months ago. Please process this payment ASAP so I can be done with dealing with you. 

Original message : My consolidation loan services XXXX has sent full payoff payment for my account on XX/XX/XXXX. On your end it is not showing receipt of this payment. 

Please advise on when this payment was received and adjust my balance accordingly. I cancelled my autopay as to not overpay my account and have to deal with trying to get a refund from MOHELA. 


No response from MOHELA. I've since sent XXXX other messages to them with a similar message- please process the check from XXXX so my account is paid in full. The messages were on XX/XX/XXXX, XX/XX/XXXX ( with check # from XXXX ), XX/XX/XXXX, XXXX, and XX/XX/XXXX. None of these messages have received a response.

Company response to consumer: Closed with explanation