MOHELA Student Loan Complaint

MOHELA Student loan department,

Non-federal student loan Dealing with my lender or servicer Trouble with how payments are handled Michigan

This is with regards to -/Mohela account # -. Last month I refinanced and consolidated - of my student loans into -. In doing so, - estimated the payoff $ amount, which ended up being $120.00 higher than what was needed to pay off the old/refinanced loans and caused the loan balance to turn negative by this amount. On -/-/2016 I sent a written request to -/Mohela through the message center on their website, asking them to promptly refund me the overpayment. They replied on -/-/2016 and said, " Thank you for contacting MOHELA. According to our records, you will have a refund in the amount of $120.00. We will initiate the refund process 21 business days after the date the payment posted to our system. After the waiting period has passed, a check will be generated and mailed within 2-3 business days to the address on file. If you have any questions please contact MOHELA - - at


getting the benefit of the funds. I believe that -/Mohela has such a practice in order to maximize their liquidity at the detriment of the little guy - the student loan borrower. Why should they have a right to my cash? They have the administrative power to process extra loan payments within just a few days - why do n't they refund within just a few days? I responded to -/Mohela 's response on -/-/2016 and explained the above as well as re-requested a prompt refund. It is now -/-/2016 and I have yet to hear back from them. I am concerned not only for myself, but also for the many other student borrowers who are being harmed by this practice. They should promptly refund any negative loan balances!