Consumer complaint received 2025-03-20 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:
In a nutshell, my complaint involves MOHELA mismanaging a {$5000.00} payment I submitted in XX/XX/XXXX. This payment was made on MOHELA 's advice that it could be applied toward a " paid ahead '' status. Instead of doing this, MOHELA applied my payment as a one-time payment and, despite months of calls, has refused to refund or reapply my payment consistent with my intentions and MOHELA 's XXXX. Instead, MOHELA has dragged its feet and refused to take meaningful action on this issue. MOHELA has broken every promise made to me ; no representative has followed through on promises to provide me updates or deliverables. Instead, MOHELA has forced me to contact them after each deadline lapses, requiring me to endure long wait times and different representatives who provide contradictory information. The following are the facts : Around XX/XX/XXXX I contacted MOHELA via phone about whether I could make a single lump sum payment and have that lump sum payment prorated and applied toward my future monthly student loan payments as they came due. I only wanted the lump sum payment applied toward monthly bills because making timely monthly payments that qualify for XXXX  is more important to me than making large payments to pay down principal and interest. MOHELA told me in that phone call that I could make the lump sum payment through the online portal and the payment would be applied toward future monthly bills consistent with my intentions. MOHELA never advised me that I needed to alter any settings in my profile or otherwise do anything special to accomplish this. Ultimately, I made {$5000.00} payment through MOHELA 's online portal on XX/XX/XXXX, based on MOHELA 's representations. 

Although MOHELA allows borrowers to enter a " paid ahead '' status with regard to monthly payments, MOHELA does not offer any method for borrowers to check on the value of funds in this " paid ahead '' status. As such, in XX/XX/XXXX, I grew concerned as to how much money was in my " paid ahead '' status and whether MOHELA and I agreed as to how much money was there. On XX/XX/XXXX, I called MOHELA and learned for the first time that my XX/XX/XXXX {$5000.00} payment was applied as a one-time payment effective that date and not applied toward " paid ahead '' status. This is directly contrary to the advice I received when I called MOHELA prior to making the payment and is contrary to my intentions. I was told in that phone call that I would be contacted by XXXX about my " paid ahead '' status in XXXX to XXXX business days. This never happened. 

I called again on XX/XX/XXXX because I was not contacted by anyone from MOHELA. I was eventually transferred to a XXXX in Resolutions. XXXX also told me he would contact XXXX and that he would reach back out to me in XXXX to XXXX business days. XXXX never contacted me. 

I called again on XX/XX/XXXX because I was not contacted by anyone from MOHELA. I was eventually transferred to XXXX XXXX in Resolutions. XXXX followed up with XXXX and XXXX about reapplying my {$5000.00} payment toward " paid ahead '' status. XXXX told me I could be in " paid ahead '' status through XX/XX/XXXX and that I would get a response within XXXX to XXXX business days. I never received a response. 

I called again on XX/XX/XXXX because I was not contacted by anyone from MOHELA. I spoke with XXXX XXXX in Resolutions. XXXX contradicted the information I received from XXXX and the information I received originally in XX/XX/XXXX. According to XXXX, my profile settings and/or something I did when I made the XX/XX/XXXX {$5000.00} payment resulted in the payment being applied as a one-time payment instead of being applied toward the " paid ahead '' status. This was contrary to my original intentions and this information had never been shared with me previously. XXXX spoke with her " friend '' in XXXX and they encouraged me to provide a letter asking for the XXXX payment to be reapplied toward " paid ahead '' status because I was confused when I made the payment. XXXX told me that, if I submitted the letter the same day, she would personally see it in XXXX to XXXX business days, and she would follow up with me. XXXX told me she set a calendar event to remind her of this. I submitted the letter on XX/XX/XXXX consistent with XXXX 's recommendation. XXXX has not contacted me. 

I called again on XX/XX/XXXX because I was not contacted by anyone from MOHELA. Additionally, there is no evidence in my online portal of MOHELA having received my XX/XX/XXXX letter. The " Documents you sent us '' section of my inbox was empty. I spoke with a regular representative possibly named XXXX. XXXX told me that my XX/XX/XXXX letter was received but my request to reapply the XX/XX/XXXX {$5000.00} payment had not been assigned to anyone. The representative 's supervisor approved escalating my request so that it would be assigned in XXXX to XXXX business days. 

I have no faith that MOHELA will follow through with this escalation, nor that MOHELA will ultimately honor the advice given in the original XX/XX/XXXX phone call and have my {$5000.00} applied toward " paid ahead '' status. Accordingly, I am submitted this complaint to end MOHELA 's dilatory tactics.

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