Student loan -- Dealing with your lender or servicer -- Complaint #8574859
Complaint Overview
Complaint ID: 8574859
Company: Mohela
Product: Student loan
Sub-Product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-Issue: Don't agree with the fees charged
State: New York
ZIP Code: 109XX
Date Received: 2024-03-18T12:00:00-05:00
Date Sent to Company: 2024-03-18T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
I am filing an official complaint in regard to the student loan servicer MOHELA, as I received a payoff letter online, which included interest, and paid off the loan in full for {$120000.00} on XXXX The average interest on my student loans was 7.080 %. This payment was made the same business day, but when I checked my account this morning, I owed XXXX XXXX on the principal and XXXX in interest, totaling owing XXXXXXXX XXXX on my account as of today, XX/XX/XXXX. I believe this is unlawful and unjust, as they did not honor my payoff letter amount from XX/XX/XXXX, and my payment in full, which included my interest at that time. I went and paid the XXXX XXXX to completely pay off the loan, but was told over the phone this morning that any interest accrued would be written off, as the loan was paid off. I asked why the interest wasn't forgiven and my payoff letter wasn't honored on my last payment, and was not given an answer on this except that interest accrues daily. I am a customer of MOHELA and had various student loans with them since they were transferred, as I was a part of their PLSF program. I always made payments on time and have never missed a payment. I was with XXXX XXXX and XXXX previously. This harms the entirety of the student loan payment system, as a customer is not being honored with their payoff letter ( and someone that actually paid off their student loans ), and then having almost 100 % interest on the XXXX XXXX I still " owed '' to them on my account. If student loan borrowers keep trying to pay off a loan in full, and it keeps accruing interest on the loan as we make the payment, how is anyone supposed to pay the loan off in total? I wanted to make this complaint against the company and will be seeking information with a lawyer regarding this matter as well, as I am sure I am not the only one that has dealt with this. I am aware that there was a class action lawsuit towards MOHELA as of XXXX XXXX regarding the PLSF program, but I wanted to send my complaint that this student loan servicer is harmful towards the industry, customers, and violates the antitrust laws with unlawful predatory pricing with charging interest when they did not honor the payoff statement. Also on the XXXX XXXX I was charged interest for the before payoff amount. XXXXXXXX XXXX interest on XXXXXXXX XXXX is not 7.080 % interest. I have also filed complaints with the U.S. Dept. of Education, the Federal Trade Commission, and the office of Federal Student Aid. Thank you!
Frequently Asked Questions
What is Complaint #8574859 about?
Complaint #8574859 was filed against Mohela regarding Student loan specifically about Dealing with your lender or servicer. It was received by the CFPB on 2024-03-18T12:00:00-05:00.
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.