Is MOHELA Lying About Interest?

General
1

Hi everyone,

I’m reaching out coz I’m having some serious concerns about how my student loan payments are being applied by MOHELA. Over the past six months, I’ve noticed that my loan balance hasn’t decreased as expected. MOHELA states that around 20% of each payment goes to interest and 80% to principal, but despite paying close to $3,000 this year, my balance has only gone down by about $1,200.

I had managed to pay off one loan in 2023, but it still hasn’t been reported to the credit bureaus, which is really frustrating. I’m also noticing discrepancies between the interest payments they report and what I’m seeing in my balance reductions. This situation just seems off to me.

Has anyone else experienced similar issues with MOHELA? Is there a chance they’re not being transparent about how payments are applied? Any advice or insights would be greatly appreciated. :blush:

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I’ve been on $0 payments under the SAVE plan (currently with MOHELA, though it may be someone else or something different for PSLF reasons) for a while. Interest does accrue, but any interest not covered by my $0 monthly payment is waived at the end of the month or billing cycle. I haven’t observed any actual accrual of interest.

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Yes, my interest accumulates $3 per day, and while they mention an interest subsidy on the Save Plan, I haven’t seen any interest deducted.

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4

Absolutely :100:, Mohela is being dishonest. I reviewed my studentaid.gov account and compared the Department of Education’s figures with Mohela’s numbers. Mohela has consistently included interest that hasn’t accrued yet.

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I’ve been making payments that are double the minimum amount, but my principal balance hasn’t decreased. I’ve been repaying $12,500 since the repayment began.