Consumer complaint received 2025-03-12 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: MN

Complaint narrative:
I have XXXX consolidated loans with MOHELA with XXXX having a lower balance than they other. I made an extra payment on my account which would pay off the lower balance and then my regularly scheduled auto payment also processed that month. Unbeknowst to me, the auto payment was applied to both accounts even though XXXX account was paid in full. This left me with a credit of {$130.00}. I reached out to Mohela via secure message and they acknowledged the overpayment and said I could call to have the money refunded. 
On XX/XX/XXXX I called Mohela to figure out how this credit would be handled. Since I was ready to now pay off my student loan balance in full, I wanted the credit applied to the student loan that had a balance. The representitive I spoke to, XXXX, stated the following : XXXX. As this is a consolidated loan, any payments would go to both accounts and I can not specify that a payment should go to only XXXX account. 
XXXX. In order to pay my loan off, I need to email MOHELA to let you know that I have some existing credits that need to be applied to the Sequence XXXX account. 
XXXX. When I make my final payment, I should pay a little extra to cover an additional day of interest since there could be XXXX more day of interest charged based on the time of day the final payment is made. 
XXXX. Between the time the credit is applied and when I made my last payment, I would not incur any interest as the timestamp of my email would be used to retroactively apply the payment thus there would be no days of accrued interest. 

It has been over 90 days since I sent the correspondence. My student loan balance continues to show interest accruing and the credit I had on the loan with the paid off balance has now disappeared from the website. It is not shown as being applied to the outstanding balance nor have I received a refund. In the attachments, I have included correspondence from MOHELA where they acknowledge this credit. I do not know why the credit no longer shows up on the website. 


Below is the correspondence I sent : -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Dear MOHELA Team, On Friday XX/XX/XXXX, I called MOHELA in regards to a credit I had on XXXX of my consolidated loans ( Sequence XXXX ). I was informed this credit will be applied to the Sequence XXXX as this had an outstanding balance. I was also informed of the following : XXXX. As this is a consolidated loan, any payments would go to both accounts and I can not specify that a payment should go to only XXXX account. 
XXXX. In order to pay my loan off, I need to email MOHELA to let you know that I have some existing credits that need to be applied to the Sequence XXXX account. 
XXXX. When I make my final payment, I should pay a little extra to cover an additional day of interest since there could be XXXX more day of interest charged based on the time of day the final payment is made. 
XXXX. Between the time the credit is applied and when I made my last payment, I would not incur any interest as the timestamp of my email would be used to retroactively apply the payment thus there would be no days of accrued interest. 

Based on the direction, please consider this document as the communication to inform you of my final payment and the credit that need to be applied to my Sequence XXXX account. 

Payment made on XX/XX/XXXX A : Balance as of XX/XX/XXXX including all interest {$5100.00} XXXX : Credit that needs to be applied from Sequence XXXX to Sequence XXXX ( Exhibit XXXX ) - {$130.00} C : Additional payment to cover interest for extra day based on guidance provided by MOHELA {$16.00} Total XXXX {$5000.00} ( A-B+C ) Exhibit XXXX XXXX : Payments or Bills Received Date : XX/XX/XXXX Thank you for contacting MOHELA, We apologize for any inconvenience this may have caused. Our records indicate, your loan sequence XXXX shows a current balance of - {$130.00}. This amount may be refunded or applied to your remaining loan sequence. Please call to speak with XXXX of our Customer Service Representatives if you have a preference. Please call toll free at XXXX. 

If you have any additional questions, please contact us toll free at XXXX. Our hours are Monday XXXX XXXX XXXX XXXX XXXX, Tuesday and Wednesday XXXX XXXX XXXX XXXX XXXX., Thursday and Friday XXXX XXXX XXXX XXXX XXXX XXXX 
Thank you, MOHELA Phone XXXX Fax XXXX TDD Dial XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Payment : Department of Education MOHELA XXXX XXXX XXXX XXXX, XXXX XXXX, XXXX XXXXXXXX mohela.com | XXXX | @ MOHELA Secure Form Submission -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --

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