Consumer complaint received 2024-05-08 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: IN

Complaint narrative:
On XX/XX/year>, I opened my Mohela account to make a first payment after having finished school in XXXX XXXX XXXX. I have unsubsidized loans so acknowledge that some interest would be accumulating. When I opened my Mohela account the total cost I owed was {$13000.00}, and I put {$3000.00} down, later receiving an email from Mohela that it had been received and would be processed in 2-3 business days. Once three days passed, I found that {$3000.00} was taken from my bank account, but not deducted from my loan total. I called Mohela and the rep told me that sometimes the first payment takes a little bit longer to process, that they have my money, but that it should be deducted in 10-20 business days, and to keep making payments as usual. Eighteen days later, on XX/XX/XXXX, I went to make another payment, and my total had gone up to {$14000.00}, a total of {$360.00} in interest, which made no sense. I went ahead and paid {$1100.00} toward my loan through Mohela 's website, and again got an email that it had been received and would be processed within 2-3 business days. Two days later, {$1100.00} was taken from my bank account and was taken from my total loan amount listed on Mohela 's website. On XX/XX/year>, I called Mohela regarding my first payment, that it still had not been processed, however, my much smaller payment had been processed and deducted. After being on the phone for nearly an hour, the rep told me that they still had my money, and due to some changes, it could take a total of XXXX business days from my initial payment, pushing the date to as late as XX/XX/XXXX. I accepted that answer, but later decided I wanted a legitimate reason why they couldn't put my {$3000.00} into my Mohela account, but could subtract my {$1100.00} from my loan total, not to mention the fact that they had already told me twice that they had my money. Finally, on XX/XX/year>, I called Mohela again telling them that it made no sense that I should have to wait an additional 37 days for my first payment to be deducted, after explaining all the proceedings up to that moment. The rep told me they had no idea where the previous rep got the 37 days from, I agreed and said I thought it was odd myself. I continued to ask why they processed and deducted the second payment but not the first, numerous times and never got an answer, at least not one that didn't include " it's a processing issue. '' After calling the rep for approximately 30 minutes, and then telling me that I'd essentially have to continue waiting, I asked to speak to someone who could get my {$3000.00} to be applied, again, being told that Mohela had my money. I got put through to a new rep and I also explained my acquired interest and that I was worried that I'd accrue additional interest on my current sum, even though I had given them now {$3000.00} that was never applied. I was told that they would not in fact charge additional interest, and if there was, that it could be refuted, but there was nothing they could do at that moment as far as deducting my first payment from my total. I asked again if they had my {$3000.00}, of which they said they did, and that it could take now an additional 10-15 business days to deduct from my Mohela account.

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