Consumer complaint received 2026-04-01 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: NY

Complaint narrative:
To Whom It May Concern, I am submitting this letter as a formal Notice of Error and Request for Investigation regarding my federal student loans serviced by MOHELA. In XXXX, XXXX, XXXX, and XXXX of XXXX, I received official written disclosures from MOHELA reflecting my loan balance of approximately {$170000.00}, with an interest rate listed as XXXX percent. These disclosures materially informed my decision to transition from the XXXX repayment plan to the XXXX XXXX repayment plan. On XX/XX/XXXX, I received documentation that showed my current balances leading up to that time, which showed no change from my loan amounts I had received in XX/XX/XXXX and earlier. This can be reflected in the attached documents to this letter ; these are all official notices I received electronically from my servicer MOHELA. I had also received paperwork on XX/XX/XXXX and XX/XX/XXXX of XXXX still showing the same current balances on my loans. Subsequently, on XX/XX/XXXX, I received an updated account information ( on my Notice of Repayment Schedule Change ) showing that approximately {$11000.00} in Estimated Accrued Unpaid Interest had been added to my loan balance, increasing my balance that day. To date, MOHELA, has not provided any written explanation, billing statement, or transactional history demonstrating how or when this interest accrued. In fact, the MOHELA definition for Accrued Unpaid Interest, as seen at the end of the same document, is the Interest estimated to accrue between the date the Repayment Schedule is generated through the day before the first Payment Start Date. My Repayment Schedule was generated XX/XX/XXXX, and my first payment start date was XX/XX/XXXX, hover the $ XXXX was added on XX/XX/XXXX. After identifying this discrepancy between previous official disclosures and my current account balance, I called MOHELA on XX/XX/XXXX. I inquired as to why my XX/XX/XXXX current balances, and my XXXX of XXXX current balances were unchanged and did not reflect any increase in interest, but my XX/XX/XXXX balance had increased by approximately {$11000.00}. I spoke with Advanced Agent XXXX, who spoke with her manager/supervisor for assistance at the time of the call. XXXX at the time stated that the interest accrued was in fact due to an error in the system when the change from the XXXX plan was made. Agent XXXX stated that there was no timeframe for how long it would take to be fixed, but the solution will also resolve the compounded interest because of the error. I continued to remain vigilant on my loan amounts from XXXX on. After seeing no change for months, I called MOHELA again on XX/XX/XXXX, and spoke to Advanced Agent XXXX who sent in an escalation request. I was told to wait 10 business days, and so I did. I called back on XX/XX/XXXX, and spoke to Advanced Agent XXXX, who said to wait 30 more days as things may be backlogged due to others in the same situation. XXXX also stated all wrongly accrued interest will revert back. I waited as instructed, but there was no change or correspondence sent again. On XX/XX/XXXX, I spoke to advanced Agent XXXX who this time transferred me to the Supervisor XXXX on the MOHELA Supervisor Team. XXXX was unable to explain clearly as to why the interest had accrued, she first mentioned it was likely Capitalized Interest, but that is not true as seen on the XX/XX/XXXX documentation. Supervisor XXXX said she would escalate it again, and to wait another 10 days. I then called back again on XX/XX/XXXX, and spoke to advanced Agent XXXX who did not have further details to provide. However, she transferred me to their higher resolution team that reviews loans. There, XXXX, on the MOHELA Higher Resolution Team, stated that she would email management immediately to escalate further, and that an agent would be assigned to investigate this by the next day, and that within 5-10 business days it would be reviewed and worked on. As of XX/XX/XXXX, there has been no change made to correct this, nor is there any newly received correspondence. Despite acknowledgment of this error back, almost half a year ago, on XX/XX/XXXX, no correction has been made. I have made multiple attempts to resolve this issue through customer service channels but have only been advised to wait, with no substantive response or resolution provided. I have attached all supporting documentation below.

Company response to consumer: Untimely response