MOHELA Student Loan Complaint

MOHELA Student loan department,

Federal student loan servicing Dealing with my lender or servicer Trouble with how payments are handled Virginia

I have - direct loans ( - subsidized, - unsubsidized ) currently serviced by Mohela. On - -, 2016 I paid a lump sum of $1000.00 and directed Mohela to apply the full amount to Loan -, using their online payment system. The payment was applied to the correct loan ; however, my next monthly payment ( auto-debited from my bank account on - -, 2016 ) was not applied correctly - a small amount was applied to Loan - and a larger amount was applied to Loan -. I contacted Mohela when I realized this error and was told the revised allocation was because my account was in " paid-ahead '' status. I asked them to edit my - - payment and reapply it as it was supposed to be applied per my repayment schedule and also remove the paid-ahead status - I wanted my payments to remain as they were scheduled, just with a smaller balance on Loan -. I was assured that this would be taken care of and would not cause any further issues.


Loan -. I contacted Mohela again, on - -, 2016. Their response indicated that they did not quite understand the problem. Again, Mohela said I was in " paid-ahead '' status and that the additional payment that I made was used to satisfy future bills ( which is exactly the opposite of what I had requested when making that payment and what I discussed with them when I contacted them in - 2016 ). The email response I received said, in part, " The paid ahead status on your account is causing your Auto Debit payments to apply to your - loans differently than what is displayed on your repayment summary. We are currently researching a way to ensure that your Auto Debit payments apply correctly, based on the repayment summary. Once we have completed research on how best to implement this process on your account, we will send you a subsequent secure email on mohela.com. '' I find it difficult to believe that I am the only customer in the history of Mohela and/or the - to want to pay down my loans and continue to have the monthly payments allocated as indicated on my repayment schedule. I also find it incredibly convenient on Mohela 's end to use this excuse - the goal in my paying extra on the loan is to reduce interest over the course of the loan, something Mohela has a vested interest in preventing. They show no interest in resolving the issue and refuse to re-allocate previous payments which were incorrectly applied.