Date Received: 2017-04-28
Product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Consumer Consent Provided to Share Complaint: Consent provided
Consumer Complaint: I may be posting this feedback in the wrong place, but I did n’t know where else to go. This complaint is about MOHELA, n ot XXXX . A couple of years ago I reached out to Mohela for clarity on how my payments were being applied. I was confidently told the way my payments were being applied was correct and nothing else could be done. I was payi ng ( a small amount ) over my bill and wanted the additional money applied to my principle. I was told my accrued interest had to be satisfied before I could make additional payments to the principle. Fair enough, however every month the additional money I sent was applied to future payments. The way I understood it, all of the additional money should have gone to my interest, or per my request, my principle. The whole thing was so confusing I did n’t pursue it further.
Fast-forward to present, I ‘ve apparently paid off my accrued interest and now — because of the additional money I pay every month — I ‘m 4 months ahead on my payments. I just called to again ask that any $ over the monthly bill is applied to my principle. Mysteriously the first call was disconnected. The 2nd time I called the man tried to tell me it was ok. All the money was going to my account, it was just being applied in the future AND the principle. Fortunately I ‘ve become a little more persistent over the years so I again explained that I did n’t want the additional monthly $ applied to future payments, I want it all applied to my principle the month I send it, and I want a full bill every month, not a smaller bill every month because my overage is being applied to the future. The man ( XXXX ) told me he had to put me on hold. I was on hold for less than a minute at which point he came back and said I ‘d have to send a letter ( either through the mail or their site ) stating that I want to ” permanently remove paid ahead status ”. He told me if I did n’t explicitly say ” permanently ”, my account would eventually default to applying the additional money to the future. So all in all I think my issue is resolved but I ‘m very frustrated that I did n’t get helpful information the first time I called a few years ago. I have t o imagine I ‘ m literally paying for the bad/lack of information.
State/Zip: NY 112XX
Company Response to Complaint: Closed with explanation
Was Company Response Timely: Yes
Did Consumer Dispute Company Response: N/A
Complaint ID: 2469553
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