Consumer complaint received 2024-05-15 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: AZ

Complaint narrative:
I've sent my full student loan payments to MOHELA for the months of : XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX All of these are in the amount of {$420.00} I've confirmed that they were sent to the correct agency and the my correct personal loan account number was used ( I won't include that specific number per the instructions ). 

I've sent the money from my XXXX XXXX XXXX XXXX. However, MOHELA continues to claim they have not received the money. They have not posted any of the payments to my account. They continue to claim I am farther and farther past due each month. 

I contacted the XXXX XXXX XXXX XXXX XXXX and they offered to run a " check trace '' on 3 of the payments ( they only will run the check for 3 as a courtesy ). They said this will determine if the electronic checks were cashed. 

On XX/XX/XXXX, XXXX provided a check trace for XXXX random payments from the XXXX payments I've made, and they confirmed that all three of the checks were cashed. 

Here is the specific information on those 3 checks : Payee ID : XXXX Check XXXX Status : Reconciled Payee Information : DEPARTMENT OF EDUCATION - MOHELA MOHELA - DEPT OF EDUCATION XXXX XXXX XXXX XXXX XXXX MO Original Issue Amount : {$420.00} Issue Date : XX/XX/XXXX Original Paid Amount : {$420.00} Paid Date : XX/XX/XXXX Payee ID : XXXX Check Number : XXXX Status : Reconciled Payee Information : DEPARTMENT OF EDUCATION - MOHELA MOHELA - DEPT OF EDUCATION XXXX XXXX XXXX XXXX XXXX MO Original Issue Amount : {$420.00} Issue Date : XX/XX/XXXX Original Paid Amount : {$420.00} Paid Date : XX/XX/XXXX Payee ID : XXXX Check Number : XXXX Status : Reconciled XXXX XXXX Payee Information : DEPARTMENT OF EDUCATION - MOHELA MOHELA - DEPT OF EDUCATION XXXX XXXX XXXX XXXX XXXX MO Original Issue Amount : {$420.00} Issue Date : XX/XX/XXXX Original Paid Amount : {$420.00} Paid Date : XX/XX/XXXX NOTE : " reconciled '' means the checks were cashed. 

XXXX followed that saying that they want me to have MOHELA track down the funds because if the random selection of XXXX checks were cashed, it meant that all of them were likely cashed. 

I've been waiting on a call back from the MOHELA escalation team since early XXXX. 

MOHELA continues to claim they " haven't received any money ''. I'm worried that the money is being taken but not applied into my account. The lack of assistance or honesty I've received when I contact MOHELA makes me believe that they have no idea where they've deposited the money and they have no idea how to go about tracking it down. So they just tell me they don't have it. 

But I have written proof from XXXX that at least three of the electronic checks have been cashed by MOHELA. The payments I've sent from my XXXX XXXX XXXX XXXX account can't even be cancelled by me anymore because they have been cashed. MOHELA appears to be stealing the money because they can not account for where they deposited the funds and they refuse to post any of the payments to my account. 

I've tried every method I can thing of to get MOHELA to post my payments, but there is a completed and total disregard of the situation and only denials and silence on their end. 

I've entered disputes with the credit bureaus which MOHELA has responded to continuing to double down saying that no payments have been made. 

I've submitted a complaint to Student Aid and begged to be moved to a different servicer because I can't keep sending my money to them and them taking it and not posting the funds to my account. At this point I don't know if this is just incompetence or if someone is embezzling the funds. 

I have so much documentation and recorded conversations that I don't even know where to start. No one would read all of this documentation -- it's too much and the situation has been going on for so long. 

I've included attachments with the check trace provided by XXXX. My payment receipts of XXXX. My statements from MOHELA showing no payment history, no payments received, and my balance. I've also included screenshots from my credit reports showing my balance with MOHELA going up by the amount of accruing interest since they are not posting my payments.

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