Mohela – I shouldn’t be surprised and yet here I am

I am beyond disgusted with how Mohela has handled my account. First, I was pursuing PSLF and had worked 10+ years for a nonprofit, but Mohela mysteriously lost 18 payments that were made to FedLoan and were refusing to reinstate these payments, despite having banking proof payments were made to FedLoan. Several requests to FSA ombudsman closed citing Mohela has no record, and no response from the state’s AG for assistance. But oh it gets better …

In July of last year I was approved for Borrowers Defense on my loans, received confirmation on my zero balance on 1/ 7, then confirmation on 2/12 that I received full discharge that had been executed and resulted in a refund of payments to these loans YAY! Mohela showed a zero balance, FSA shows (and continues to show) a zero balance. I washed my hands of it and was finally able to breathe!

But it was short lived. 2/20 I get a notification of payment due. I login, see a random balance, contact them immediately for clarification. After 3 hours waiting for rep on the phone, I hang up and send a message in the portal. Surprise surprise, no response. 2/23 I get a missed payment notification. When I contacted them their response was that the “refund was not accurate“ and they mistakenly created an over refund that they are reprocessing.

So now my account shows I owed money on loans that were FULLY DISCHARGED that is collecting interest. I am beyond disgusted. I cannot (and do not) believe this is legal for them to collect money with interest on a loan that the federal government discharged and they messed up in processing. How are they so unbelievably incompetent???