Consumer complaint received 2025-06-02 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: WA

Complaint narrative:
I am currently in the XXXX  Forbearance due to the ongoing litigation. I have verified through XXXX XXXX XXXX that my loans have been in this forbearance since XX/XX/XXXX at XXXX XXXX interest rate. Since XXXX, my loan interest has inflated exponentially with no apparent reason ( once in XXXX and again in XXXX ). Whether it be SAVE forbearance or processing forbearance that MOHELA has currently, no interest should accrue during this period. I have not changed payment plans, so no interest should be capitalizing either. MOHELAs response to my complaint with the CFPB on account balance discrepancies I noticed starting back in XX/XX/XXXX was as follows : Our records indicate the interest on your account in the amount of {$6700.00} accrued prior to the application of the XXXX XXXX interest rate associated with the XXXX forbearance, which started on XX/XX/XXXX. As a result, our records indicate that your outstanding balance detailed as follows is accurate. Total Payoff Amount : {$90000.00} Total Principal Due : {$83000.00} Total Outstanding Interest : {$6700.00}. Not only is the principal balance incorrect, the amount of interest is also incorrect. I have a statement from XX/XX/XXXX that shows my outstanding principal is {$83000.00}. My interest also says it is at {$6400.00} on that billing statement. So even that isn't correct with the balances they are providing in this response. My Federal Student Aid history ( XXXX website ) also shows I have been in forbearance since XX/XX/XXXX, not XXXX. They also note in their response that the amount of interest accrued XXXX to XX/XX/XXXX. I had to submit another complaint due to this issue being continually unsolved. The complaint was submitted and XXXX and just responded to last week with the exact same response as above, with different ( higher ) interest amount, showing that the interest continued to inflate despite their denial : Our records indicate the interest on your account in the amount of {$16000.00} accrued prior to the application of the XXXX XXXX interest rate associated with the XXXX forbearance, which started on XX/XX/XXXX. As a result, our records indicate that your outstanding balance detailed as follows is accurate. Total Payoff Amount : {$100000.00} Total Principal Due : {$83000.00} Total Outstanding Interest : {$16000.00}. This is insane to get the same response twice that directly contradict each other. This is evidence of MOHELAs gross incompetence and also proves that interest has accrued. Otherwise, the quoted interest wouldnt have gone up as shown by their statements. I have all account documents, billing statements, inaccuracies that prove I am correct. I would like the excess interest ( $ XXXX equaling XXXX in excess interest! ) removed from my account immediately. At the very least, MOHELA should be able to clearly explain how theyve arrived at the current balance of {$100.00}, XXXX and clarify this extremely convoluted process. It is super stressful to have my balance inflated so much and be so powerless to do anything. They continually ignore my requests to remove this interest when accessing their internal messaging system and/or call. Not to mention it is near impossible to reach someone when their at XXXX wait times. I have also disputed each charge on my credit report and have had success in deleting them, as they completely agree that the balances are incorrect! I am in awe that what they are doing is legal and have begun consulting with a lawyer regarding their inability to fix this issue. The firm is XXXX XXXX and they are already investigating other complaints from other borrowers.

Company response to consumer: Closed with explanation