MOHELA Student Loan Complaint

MOHELA Student loan department,

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

My student loans were deferred while in graduate school and recently became eligible for repayment. I had existing ACH auto debit instructions setup with Mohela, my loan servicer. Upon the end of deferment, only - of my - loans were drafted by ACH. I was misled to believe that setting ACH payments would include all loans. This misstatement resulted in my remaining loans to be late, incurring additional interest. It was only by chance that I logged onto the Mohela.com website to check my loans that I noticed I was one day late. I am signed up for paperless statements and did not receive an email, phone call, text message or other notification that my loan was delinquent. Had I not logged onto the website I would not have known I was late, would have incurred additional interest charges and possibly had a negative impact on my credit score. I confirmed that all my contact information was correct to ensure any communication from Mohela would be received without error. It is clear that Mohela is purposefully misleading students and borrowers about their ACH auto debit practice. This is a misleading, wrongful practice designed to delay payment to the loan servicer. As such, it increases the interest students pay on their loan and generates a larger profit for the loan servicer. If Mohela were honest about their ACH draft policies, they would have sent correspondence clearly stating that not all student loans are enrolled for ACH debit.