Consumer complaint received 2024-07-05 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: NY

Complaint narrative:
In XX/XX/year>, Mohela announced that they would transition their loan servicing system to StudentAid.Gov. 

In XX/XX/year>, I scheduled a XX/XX/year> {$650.00} loan payment and a XX/XX/year> {$650.00} payment on my federal student loans. I requested a formal financial activity report for my prior and scheduled loan payments to ensure that Mohela would keep records of my loan payments during and after the loan system transition. I received a confirmation from Mohela that this process would take 2 weeks to receive. 

In XX/XX/year>, Mohela notified me that my account was transitioning to StudentAid.gov. On XX/XX/year>, approximately 4 weeks after requesting the financial activity report, Mohela notified me that I could access my financial activity report at Mohela.com. When I tried to log in to my Mohela account, I received this notification and couldn't access my account anymore : " System-Platform Transfer Notice Your federally-owned loans serviced by MOHELA have begun to transition to our new loan servicing platform. Your loan information in the phone system and online will be available once the transition of your loans to the new platform is complete. Your loans will still be serviced by MOHELA. 

We will send you a letter once your loans are fully transitioned to introduce you to the new loan servicing platform. If you are enrolled in Paperless correspondence, you will be sent an email that your letter is available on the new loan servicing platform. Check mohela.com/system-transition for more information. '' On XX/XX/year>, {$650.00} was debited from my account for my scheduled loan payment. 

On XX/XX/year>, Mohela notified me that my account transition to StudentAid.gov was complete. I created a StudentAid.Gov account and logged into my account. I noticed that my XX/XX/year> loan payment was not reflected in my account. I called Mohela 's customer service, who noted that they couldn't find my payment in the system. I asked the customer service rep to mark my account with this discrepancy, find the missing payment, and notify me when the update is made. As of XX/XX/year>, that hasn't happened. 

On XX/XX/year>, my checking account was debited {$650.00} for the pre-scheduled loan payment that I set up in XX/XX/year>. I did not receive a confirmation email from Mohela for this payment, and my loan balance is not reflecting this payment. I am continuing to accrue interest on my principal loan balance, as if I did not make {$1300.00} in loan payments. 

I am losing faith in the Department of Education 's ability to effectively process my student loan payments, and I am submitting a formal complaint to reflect this and demand accountability for tracking my ahead-of-schedule and on-time payments. This reflects poorly on our government when a citizen 's money is mishandled.

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