Student loan -- Dealing with your lender or servicer -- Complaint #9509272
Complaint Overview
Complaint ID: 9509272
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: Connecticut
ZIP Code: 06082
Date Received: 2024-07-14T12:00:00-05:00
Date Sent to Company: 2024-07-14T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
My student loans, and those of my wife, have been on the XXXX plan since the fall of XXXX. I have made regular on-time payments per the terms of XXXX the entire time. In XXXX of XXXX, during a routine check, I noticed my loan balances had grown. The Dept. of Education website on the XXXX plan states that due to the interest subsidy, balances should not grow as long as I make payments. I messaged Mohela and was advised that it is a timing issue ; that the interest will be charged off immediately after the next payment. Over the next several weeks, I monitored the accounts, and both continued to grow, even though I was consistently making payments. On XX/XX/XXXX, I finally got through to them on the phone and questioned a representative about the issue. She put me on a long hold to talk to a XXXX, and then told me that the only accounts to receive the subsidy are those who qualify for a {$0.00} payment. This goes against the information on the studentaid.gov website, which states : " The XXXX XXXX has an interest benefit : If you make your full monthly payment, but it is not enough to cover the accrued monthly interest, the government covers the rest of the interest that accrued that month. This means that the XXXX XXXX prevents your balance from growing due to unpaid interest. ''
Frequently Asked Questions
What is Complaint #9509272 about?
Complaint #9509272 was filed against Mohela regarding Student loan specifically about Dealing with your lender or servicer. It was received by the CFPB on 2024-07-14T12:00:00-05:00.
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.