Consumer complaint received 2025-10-06 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: GA

Complaint narrative:
I applied 25 years ago or more for a student loan. I selected a 'Standard ' repayment plan. Later, XXXX and/or XXXX unknowingly put my loan ( s ) in a 'Graduated ' or 'Extended ' repayment plan which nets them tens of thousands more in dollars. I had no idea. I just kept paying and paying. Then after XXXX and XXXX were found to have defrauded so many, including me, I went to XXXX for help. A XXXX representative man did all the calculations for me and- yes, XXXX itself! - explained in 2024 that I was wrongfully placed into a Graduate repayment plan and that my repayments should have been over long ago, and with a balance due of only something in the $ XXXX $ XXXX range rather than the approximately {$60000.00} balance still showing on my account then! I am getting close to XXXX XXXX XXXX. I still work and make a good income but part of the reason I had to keep working was to pay off criminals like XXXX and XXXX  - and now Mohela! I made my case with XXXX but they rejected any help and threatened that if I didn't keep paying the Feds would garnish my pay and take it out of my Social Security money. After XXXX was sued ( but I wasn't aware of that until afterward, unfortunately. I was not notified ... ) they transferred me to Mohela. I took my case to Mohela and they told me I needed to apply for a Consolidation and for relief and possible waive. I did what I was told. No one answered my complaints/messages at all, as usual. Finally I found my entire account balance went to {$0.00} owed and it was Closed. I called Mohela and was told my loans were maybe sold to Advantage (? ) and verified they were not in any other status such as a forebearance. I started receiving emails from Mohela but they are in faint print and difficult to read and appear to be fakes or errors. I called Mohela again and confirmed my l loan balances were ZERO and my account was Closed and I no longer owed anything and the representative said they believed Mohela or the Feds must have approved the written Complaint and waived my balance. I took screenshot pictures I have of my account before it was closed with {$0.00} balances. Soon I could no longer access Mohela as they completely closed out my account and any access and there was no longer any record of the account online, even. Now I am getting bills and still faint email messages from Mohela saying they put my account in forebearance and I now owe about TWICE the monthly payments as before, over $ XXXX, and my loan balance is back to close to {$60000.00}. I have written to Mohela but with no reply. I have called but get put on hold for hours and no human ever comes on. Now I am receiving 'Past Due ' messages from Mohela . I do NOT owe this loan anymore and I need help. I have complained and complained and can not seem to get help. I either did NOT select a Graduated or Extended repayment plan or XXXX misled me about it to try to make more money : XXXX, as part of its fraud, just made a note in its own file that I verbally okayed that at some paying - but I never did - and XXXX kept up the ruse to make even more money on unsuspecting people like me. Even the attached letter from the XXXX admits they just SAY that I requested a Graduated Plan but there is no record of it. I never ever would have chosen a plan that went from 10 years or so to over XXXX years now, and with INCREASING payments. I need help. Please help me resolve this. The Feds ' student loan providers continue to be incompetent frauds...- XXXX XXXX ( XXXX ) XXXX XXXX XXXX

Company response to consumer: Closed with explanation