Consumer complaint received 2025-01-03 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: IL

Complaint narrative:
First thing this company ( Mohela ) did is rescind my student loan forgiveness that occurred in XX/XX/XXXX. They rescinded my student loan forgiveness on XX/XX/XXXX, XXXX XXXX after forgiveness and after it was reported to the three credit bureaus stating that my student loans have been paid in full. Still don't understand how this is allowed to happen, but here we are almost XXXX XXXX later and nothing has been done. You all are still a bunch of crooks and only care about the bottom line and not helping out borrowers. 

Fast forward to the month of XX/XX/XXXX and I have been placed on Forbearance because my loans are associated with the XXXX XXXX and because this nonsense is currently being handled by the judicial system because some state Republican Attorney Generals decided to sue the XXXX XXXX on the XXXX XXXX and they think it's okay to mess with the lives of working Americans currently in student loan debt ( they want us to be in debt forever ). I received a letter/email correspondence on XX/XX/XXXX via my Mohela account stating I am on Forbearance due to being on the XXXX XXXX and no interest will accrue on my account starting on XX/XX/XXXX. Though I called Mohela several times asking when the interest will stop accruing on my account, I was told " it takes time and it needs to be done manually and the interest will be added back after a review is done. '' I made three payments : one on XX/XX/XXXX, another on XX/XX/XXXX, and a third on XX/XX/XXXX. The three payments have interest associated with them even though I wasn't supposed to have interest accruing on my student loan account. I called Mohela several times to resolve this issue. The last phone call I had about this issue ( I don't remember the date because I have just stopped collecting the dates I have communicated with this crooked company ) with Mohela was with a BRAND NEW Mohela employee. I asked when the interest that was collected will be taken off the principal balance. The BRAND NEW employee stated she is not equipped to do this and " I need to transfer you to a supervisor. '' I got transferred after talking with the BRAND NEW useless Mohela employee and was on hold for almost an HOUR! I hung up because nobody was going to help me and they weren't going to reflect the interest that accrued back on my principal balance. 

They also added additional interest that was pending for one of the loans to the principal balance after interest stopped accruing at the end of XX/XX/XXXX. The total interest they states was " unpaid '' is {$84.00}. This " unpaid '' interest shouldn't even be on my principal balance since it was accrued during my Forbearance period. I am on Forbearance because I am on the XXXX XXXX and I should NOT be paying interest. 

My current principal is estimated at {$77000.00} as of XX/XX/XXXX. In my payment history of my Mohela account. Right now, the principal balance SHOULD be at {$76000.00}. 

Let me type this again so that it is not missed, interest stopped accruing on my account at the END OF XX/XX/XXXX when it was supposed to STOP accruing on XX/XX/XXXX. And Mohela added an additional {$84.00} of accrued " unpaid '' interest back to my principal balance without notifying me. They thought I would not notice the balance change and I know you all are going to come up with some B.S. excuse about it. 

So, to summarize, I was on XXXX forbearance on XX/XX/XXXX. Called Mohela to verify and they stated it the 0 % interest needed to be done manually and that the interest will be reflected on my balance once the 0 % interest has been made to my account. I made three payments with interest associated with them and the interest is not reflected on my principal balance due to Mohela 's incompetence. And there is no record of them putting the interest back on my principal balance. When interest stopped accruing on my account at the end of XXXX, there was {$84.00} of accrued " unpaid '' interest that was then added to my principal balance sometime towards the end of XXXX. I have called multiple times and no action has been taken. It has been almost XXXXXXXX XXXX.

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