Consumer complaint received 2025-05-24 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: MI

Complaint narrative:
I had four student loans serviced by Mohela. On XX/XX/2025, I made a payment of {$13000.00} directed toward three of my four loans. After this I owed on loans XXXX and XXXX, but loans XXXX and XXXX were paid in full. On XX/XX/XXXX my regular payment of {$260.00} was automatically deducted from my bank. The {$220.00} was disbursed across all four loans, including the two that were just paid off, resulting in overpayment of {$73.00} on loan XXXX and {$58.00} on loan XXXX. On XX/XX/XXXX the third loan ( XXXX ) was paid off through regular payments. Mohelas website shows it is paid in full ; my credit report has updated to show it paid off and I have received a letter from Mohela saying as much. Loans XXXX and XXXX continue showing a negative balance but are not showing as paid off. I am asking anyone for help to update the status of these loans to paid in full and recover the {$130.00} which Mohela is withholding from me. 

My attempts to resolve this : I looked on the Mohela website including the FAQ, clicked on most links and asked the XXXX XXXX The XXXX links me to articles about overpayments by the loan provider to me, but gives no guidance on resolving an overpayment from me to them. Calling the Mohela number at ( XXXX ) XXXX is also unhelpful. When calling the number there are many messages which play before you can choose any options. One references refunds, but the only thing it says is to send Mohela a secure message. It does not explain how to do so. 
An internet search for Mohela messaging or complaints leads to an old Mohela website at https : //www.mohela.com/dXXXX This takes you to a login screen, which redirects you to a different website at https : //myaccount.mohela.studentaid.gov/AccountSummary? XXXX Trying to submit a complaint from this website sends you to https : //studentaid.gov/feedback-center/, which has no obvious way to submit a complaint. 

The Mohela help line is only open from XXXXXXXX XXXX XXXX XXXX  on Wednesday, making it virtually impossible to talk to someone if you work day shift, and if you work night shift you must stay up and miss sleep to speak with anyone. 

I first tried to contact someone XX/XX/XXXX. I called at XXXX XXXX and spent 1 hour 34 minutes on the phone before asking for a callback. Of course, I missed the callback because I was working. 

My next opportunity to call did not come until XX/XX/XXXX. I called at XXXX XXXX and spent 4 hours and 32 minutes on the phone. It took me about 1 hours to reach the first person. I explained the issue, was told they could not help, and put on hold again. I remained on hold until my phone battery died. 

I called the next day, XX/XX/XXXX. My first call was at XXXX and lasted 3 minutes. It took three minutes of listening to messages for the phone system to bother telling me nobody was there. I called again at XXXX, figuring by the time I got through all the messages it would be time for representatives to answer the phone. Five minutes after I called, I finished the last message and was immediately connected to a representative. After explaining the problem I was told I had to speak with someone else and placed on hold. I had to hang up the phone to attend to my job duties fifty-two minutes after I called. 

On XX/XX/XXXX I sent Mohela the following complaint from their website I have two loans which have overpayments on them for {$73.00} and {$58.00}. I need this money to be released and applied to my remaining loan. I have made four calls in the last two weeks regarding this, staying on hold for about 5 hours and 5 minutes in total. During this time I have managed to actually speak with two separate people, both of whom where unable to help me and placed me on indefinite hold. As of XX/XX/XXXX I have received no response.

Company response to consumer: Closed with explanation