Consumer complaint received 2024-08-27 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: NJ

Complaint narrative:
I paid {$10000.00} to my student loans ( serviced by Mohela ) and the money was taken out of my account of XX/XX/24. The following day I was made aware that my account transitioned ( I was able to make payments up until this point and was trying to finish paying the loan so I would not have to deal with the new system ). 

After a few days of the payment not posting ( as it had in the past ), I called Mohela and customer service stated that it would take 30 business days to post. My account continued to display over $ XXXX is debt owed and autopay was continuing to take money out of my account. I was told I could stop auto pay and then I would just have a penalty on my account but would not get sent to collections for 90 days. As I did not wish to have my credit affected I continued to keep on autopay with the thought that it would be resolved within the 30 days. 

30 days later, my account continued to display over $ XXXX in loans owed. I called and they told me it would take 60 days to post ( they escalated my situation ) and offered to stop auto pay telling me that they would just send me to collections but it would be cleared once my payment processed. Again I refused as I did not want my credit affected. 

Another 30 days passed, my loans continued to display $ XXXX in debt and I was told 90 business days until it would clear. 

After 90 business days I was told that it should just take a few more days, I spoke with a supervisor ( XXXX XXXX who said she had to reboot my account and it would clear in 10 business days. 

10 business days later I reached back out as my account continued to have a balance. I called the extension for XXXX, was sent to voicemail, and my message was not returned. 

I called the following day and was directed to XXXX ( a resolution supervisor ), XXXX was very helpful and assured me that it would be taken care of in XXXX business days. She gave me her extension to call back if it was not resolved. 

On XX/XX/24 I called and asked to be transferred to XXXX to help me with this issue and Mohela stated it was against policy to transfer to an extension. The representative I talked to was unhelpful giving me the option to either stop auto-debit or put the account in forbearance. 

I have made over 13 calls in the past 5 months to resolve this issue. They continue to take money out of my account ( I have been told that once this issue is resolved it will take another 90 business days to get my overpaid money back ), for a loan that is non-existent. My student loans should be cleared and my account closed at this point but the accounting team refuses to update my account despite it being escalated over 3 times now. 

I have have attached a log of my posted student loan payments and well as the numerous calls that I have made over the past 5 months.

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