Student loan -- Dealing with your lender or servicer -- Complaint #5000461

Complaint Overview

Complaint ID: 5000461

Company: Mohela

Product: Student loan

Sub-Product: Federal student loan servicing

Issue: Dealing with your lender or servicer

Sub-Issue: Trouble with how payments are being handled

State: Alabama

ZIP Code: 36526

Date Received: 2021-12-12T12:00:00-05:00

Date Sent to Company: 2021-12-12T12:00:00-05:00

Company Response: Closed with explanation

Timely Response: Yes

Consumer Disputed: N/A

Submitted Via: Web

Consumer Narrative

I contend that the original loan ( which was {$5000.00}. ) amount has been paid. However the loan was consolidated and interest accumulated. On XX/XX/XXXX the principal balance according to MOHELA was {$22000.00}. I have made payments from that date until XX/XX/XXXX totaling over {$10000.00} but yet the principal balance on XX/XX/XXXX is {$22000.00}. How is that possible? So none of my payments have effected the principal balance in 5 years? How is that fair? Also, during the Coivd19 grace period on MOHELA 's website it states " During this time no interest is accruing and no payment will be due before XX/XX/XXXX ''. I checked my account and interest has accrued in the amount of {$3400.00} for a total payoff amount of {$26000.00}. So if I could payoff my account on or before XX/XX/XXXX that would be the payoff amount? What happen to NO interest accruing during the pandemic grace period? I am not a teacher, nor do I work in the public service sector, nor am I total and permanently disabled. Is there no remedy for other workers trying to pay off their student loan? How can I get the principal balance reduced on my student loan?

Frequently Asked Questions

What is Complaint #5000461 about?

Complaint #5000461 was filed against Mohela regarding Student loan specifically about Dealing with your lender or servicer. It was received by the CFPB on 2021-12-12T12:00:00-05:00.

How did Mohela respond to this complaint?

The company responded with: "Closed with explanation". The response was timely.

What is the risk level of this complaint?

See the risk assessment section for details on this complaint's risk profile.

How do I file a similar complaint?

You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Student loan) and describe your issue in detail.

Can I see other complaints against Mohela?

Yes, visit the Mohela company profile at readthecomplaint.com/company/mohela to see all complaints, risk scores, and analysis.

Disclaimer

This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.

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