Consumer complaint received 2025-06-03 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: MOHELA
State: OR

Complaint narrative:
In XXXX of XXXX I consolidated my direct loans in order to get on the XXXX plan. That fall, student loans payments were beginning due again. Mohela my servicer made several errors with onboarding and the XXXX XXXX XXXX pushed back the start date of payments. I had made payments and resubmitted an XXXX renewal amount due to my income change. The government said I could request a refund of my payments due to the poor onboarding, which I did. I made XXXX payments in XXXX before Mohela put me in a forbearance stating that I had paid in advance and a payment wasn't due until XX/XX/XXXX. Interest was accruing on my account despite the fact that an element of the XXXX plan was that the government subsidizes the interest if your payment doesn't cover it. I called to understand why I was put in a forbearance and how I had paid ahead - when I did not actually pay ahead. I spoke with a Mohela representative who couldn't explain why I had paid ahead and said that it was just waiting for the government subsidy, which never came and the interest kept accruing. I filed several complaints and made calls to Mohela often on hold for hours and unable to get through. When I spoke with someone again they said that the payment in advance was from a loan consolidation from several years ago, but didn't know when or how this was happening or when the subsidy of the interest would be addressed. 

Essentially I entered the XXXX plan with a balance of {$130000.00} and accrued upwards of {$8000.00} on it. I kept filed complaints with XXXX XXXX for them only to closed without any communication or resolution. I tried Mohela again and spoke with another representation eventually who said that I had been receiving inaccurate and conflicting information throughout the last year plus. They were able to request removal of some of the unfairly placed interest since they had been charging interest when the interest for the XXXX plan was placed at 0 % due to the court cases, but they couldn't take away the interest that accrued between fall XXXX and XX/XX/XXXX. 

Now I have approximately {$6500.00} worth of interest tagged onto my loan balance unfairly, with no clear reasons as to why Mohela believes this is accurate, when I have gotten inaccurate information if I get any information or communication at all. 

There is never any recourse as a consumer for the poor mismanagement and communication from XXXXXXXX XXXX  XXXX and especially MOHELA. I have filed complaint after complaint. I don't feel that calling is productive because I spend hours on the phone and if I get someone they all tell me conflicting information. If communication does happen it is never timely getting a response half a year later. How is a consumer to make decisions about their financial life if there aren't getting accurate information in real time about their debt? 

I want the interest to be take off my account and for my loan balance to return to what it was supposed to be on the XXXX plan {$130.00}, XXXX. 

In addition, I never received from the dept of education my XXXX account adjustment. 

I diligently stay on top of my student loan in order to never be in default and manage as best I can the situation, but it is like a runaway train. I have no recourse as a consumer for the mismanagement of my loans, which dates back even further than the recent years, which is what the XXXX account adjustment was supposed to address.

Company response to consumer: Closed with explanation