Consumer complaint received 2025-04-14 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: FL

Complaint narrative:
XXXX I posted a {$25.00} payment to my student loan account using electronic funds payment method. The payment was processed and posted with no issue which XXXX I posted a {$25.00} payment to my mohela student loan account using the same method being it was saved to my profile account. 
XXXX I received a notice Mohela has transitioned to a new platform and all student loan borrowers need to use their social security number to created their profile so all information can be transferred from the old platform to the new platform. Student borrowers didnt have to input new information UNLESS something has changed on their end. My checking account and all personal information including my SAVE plan was transferred without me inputting any information. 
XXXX I posted a payment of {$10.00} to my Mohela student loan account but that payment came back reversed XXXX I posted a payment of {$10.00} and that came back reversed XXXX I posted a payment of {$15.00} and that came back as payment reversed also XXXX I posted a payment of {$25.00} and that also came back as a payment reversed XXXX I called to make a payment through the automated system to see if online is an issue. I made a payment of {$5.00} and received a confirmation number. That payment also came back reversed payment. 
XX/XX/XXXX - I made attempt to speak with a representative, it took me about 12 minutes just to advised the automated system I wanted to speak to a live person, as I waited the call drop. This day the wait time for 4 hours XX/XX/XXXX - I called to speak with a representative but the automated system kept referring me to online. I called at four different times XXXX I attempted to contact Mohela to speak to a representative at XXXX. I waited for 40 minutes and the call dropped. This day the wait time was 2 hours. I called back again at XXXX and finally spoke with a representative name XXXX who advised I need to speak with my bank who has been denying all my payments. I asked was there any error message the system is receiving that states why the payment is not process such as incorrect information, insufficient funds but the representative XXXX could not tell me what was the issue he kept referring me to my bank. I explain prior to the new system my payments was processed and posted to my account which I advised nothing changed with my profile that was transferred over to the new platform. I asked for a supervisor who did not want to speak to me but just advised the representative XXXX to tell me to call my bank because its nothing MOHELA can do about it. I advised I never received anything pertaining to issues with my banking profile from Mohela and MOHELA continuously allow me to make payments without notifying me theres a banking issue but reported late payments to all three credit bureau. The representative was rude and was trying to rush me off the phone by saying call your bank over & over without any details. 
XXXX I contacted my bank who verified Mohela never attempted to process any payment, the only payments that was processed was XX/XX/XXXXXXXX XXXX XXXXXX/XX/XXXX. The bank representative wanted to know what was the error message Mohela was receiving to research but mohela failed to provide that information. The bank representative could not help me because she did not see any attempt from Mohela/Department Education Student loan on my bank transaction/statements . 
My student loans also shows a {$2000.00} increase and late payments has been posted to my credit report. This is unfair when Ive tried multiple times to make payments but their system has a error message which they cant provide so I could attempt to fix the issue if there is one. 
XXXX I entered a complaint through mohela system pertaining to payment processing which they gave me no solution or information XXXX I entered a new complaint pertaining to payment processing. Mohela sent an electronic letter pertaining to payment processing and the letter stated my bank denied the process and to check my banking information. This was the first time I received notification of my payments being reversed and possibly what error message mohela was receiving.

Company response to consumer: Closed with explanation