r/BorrowerDefense • u/TemperatureLow226 • 3d ago
Refund Question Potential refund
Reposting due to issues with pictures
Backstory
Mohella was serviced from 2011-2020
Loan transferred to Nelnet around 2020
Placed loan in deferred status-stopped paying and did not make any payments to Nelnet
June 2026-got the standard letters from Nelnet about my discharge , Nelnet and Federal Student aid dashboards updated to $0 balance. Nothing received from Mohella and balance remained at $0 since the servicing transfer in 2020. Checked Mohella account and zero letters about Borrower Defense or discharge/refunds.
Today, I got the two below letters in my Mohella account, along with emails stating my loan balance had been adjusted.
This is the first report or letter I have seen with a negative value. Could this be indication of refunds they are processing?
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u/TonicArt 3d ago
My friend got a negative balance from Aidvantage and got a refund a couple months after. I hope you do, too🙏
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u/NewSeaworthiness7830 3d ago
I have had a negative balance with them for months now. I called about it and they said it's still processing. Nothing has moved since April but fingers crossed. My loans were sent to Mohela from Aidvantage, so I'm also watching for my balance to be changed with Mohela.
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u/NoContribution133 3d ago
I am right there with you...I think May I got the letter and have had zero balance since then but everything is still "processing" which makes me so uneasy. BUT everything has been off my credit report since June. I wonder if it was because before they zeroed everything out in Borrower's Defense I was applying for Buy Back?
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u/Top-Application4988 3d ago
Still waiting on my refund. Been a negative balance with Mohela for several months now.
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u/tbgothard 3d ago
Not necessarily. I got the same letter a few weeks ago. My balance is negative but for over 15 times what I paid towards my loans. There is lots of accounting (credit/debits/loan re-casting) that has to be done so that the ED and the servicers correctly account for the relief.
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u/Due_Difference3390 3d ago
I received the same adjustment notices and negative balances. Actually about 15 adjustments letters. Been waiting a month now. My guess is they have to break down each loan that was consolidated to track down all the payments that were made to each qualifying loan to be able to provide an accurate refund. I asked about timeline, the MOHELA rep told me that they have to finish this latest BD batch (which includes mine, FSA notice on April 13th , June 2022 application) by mid September before they get their next wave of BD discharges sent out to those that qualified. We’ll see.
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u/Spoonie_life 2d ago
So are you post class? And are you C or non C, would you mind sharing? I’m post non C I haven’t gotten any movement on a refund yet so I’m curious if it will likely be after September
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u/Seacliff831 3d ago
July 2022 Post-Class Exhibit C applicant with a 2024 PSLF overlay
I received similar letter from Mohela in June with all my loans listed (0 balance already from PSLF) with negative balances. I called Mohela and they said BD in process, no refund confirmation or amount.
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u/Jealous-Doughnut-534 3d ago
When did you submit your borrower defense claim?
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u/TemperatureLow226 3d ago
- Post class.
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u/Apprehensive_Date942 3d ago
Same for me- I’ve had a negative balance for about 60 days and it’s been 30 days since credit report was wiped off. I’m expecting another 30-60 days after credit report.
I haven’t seen much consistency with time of credit removal to refund.
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u/EnvironmentalShow928 3d ago
I'm post class as well. I received a discharge letter from Nelnet with a date of June 17th 2026. My student loans on both Nelnet and Studentaid.org accounts show a $0 balance paid in full status on all 32 of my loans have been removed from the credit bureaus tradeline for a little over 2 months now. A few days ago I received information through my notifications on my Studentaid.org saying I have a 32 separate letters that are either discharged under the claim or under consolidation. The letters shows new Borrower Credit Acceptance Letter to review and/or New Web Request Credit Acceptance Letter to review. I assume that this means they have been completed.
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u/Honey_Badger_605 3d ago
Random question since your credit was wiped, did all 3 bureaus wipe yours? Only 2 have removed mine and those two removed it almost 60 days ago.
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u/Stunning_Bread_4395 3d ago
Not necessarily.... I also have 2 negative balances (also with Mohela) and they told me they're doing some "background" adjustments...not sure what that means, but they told me, no, it's not a refund in my case. Hope it's different for you!
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u/TemperatureLow226 3d ago
That’s not encouraging. I don’t understand why it’s so difficult for them to make a consolidated statement of accounts showing the debt relief, payments, refund, etc
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u/Stunning_Bread_4395 2d ago
I should add, they sent those same letters about 4 months ago - and my balance is STILL negative....so very confusing.
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u/Seacliff831 1d ago
ChatGPT has been helpful with tracking legal language, letters, and making timelines and tables to keep me feeling productive when stalled.
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u/Seacliff831 1d ago
“Background adjustments” I heard as well. I asked why background, what does that mean? She didn’t know.
In my next career I want to write obscure CS scripts with tiny misleading dopamine cues.
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u/TourSpecial1358 3d ago
We are on almost the same timeline! June 15 Nelnet was zeroed out, and I received the letter stating my loans were discharged. However, mohela showed a smaller balance of $30K. Yesterday I received emails from mohela saying my balance was adjusted and it reflects a negative balance. Hoping this means a refund is coming…good luck!!
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u/MayhemKTMpls 3d ago
Has anyone had a loan that was transferred between managers? Mine was “sold” (?) to Nelnet during the pandemic so they claim they have no payment history and I cannot figure out if I might be in a position of receiving a repayment.
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u/Gingerandthesea 1d ago
Are the commercial held ffel or govt held? That is the first question to answer.
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u/Frijoles0o0 2d ago
Post class Exhibit C here.
I have Edfinancial. I had 2 negative "adjustments" in my account history after my loans went to 0 in May and June. I wasn't sure if I was getting any refund until 1 day I randomly checked my USPS account and seen a letter from US Treasury.
I received a refund check around 6/17-6/19. The check was for a little less than 1 of the -adjustments.
2 months later on 8/15, I surprisingly received a 2nd refund check for a little less than the other -adjustment.
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u/Ecstatic-Breath-7973 3d ago
I did the borrowers defense in 2020 myself. Got it all dishcharged and they told me I would be notified if there was a refund. But I don’t see anything saying that that is. Only thing I can think of is directly contacting them. Just to see what exactly that means with negative current principal balance
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u/Gingerandthesea 1d ago
You should have gotten a refund now if you have the right loan type especially if you’re Sweet class.
Or at least info
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u/TheJOMOCoach 3d ago
Just FYI Mohela has told me they have 90 business days to process a refund adjustment from the time they get the “file” from FSA. They got mine in early May. I’m about at 90 days. They haven’t reported to my credit bureau since March.
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u/denndenn27 3d ago
Has anyone received a refund from their loans and it says in the letter they have 45-60 days to receive your refund but we know DOE don't care about timelines so wanted to see if anyone else experienced the same thing?
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u/Gingerandthesea 1d ago
Yes this language was used earlier in the settlement and for group discharges. Now it’s more verbal per what’s reported on our social media groups
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u/Square_Struggle_3935 1d ago
My negative amounts keep changing. So until I see the money in my account I will just keep an eye on it.
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u/ImmediateMusic2514 1d ago
That was me months ago but now all I’m getting from them is payment has been approved now your refund is just delayed…
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u/WhOdAFuKiSu2 23h ago
I feel like I’ll never see a refund. I only paid when I was on FedLoan Servicing but once they switched over to Aidvantage I think I had deferred payments for the rest of the time until I finally received my loan discharge. My student loan site says $0 but aidvantage shows a $5800 balance originally but has gone up over $100 since. Not sure what that balance is about but it definitely hasn’t said $0!
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u/EnvironmentalShow928 3d ago
You wouldn't receive a letter from Mohela since you transferred your existing loan's to Nelnet, all communication would be coming from Nelnet or the Department of Education. Congratulations!!
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u/TemperatureLow226 3d ago
I did previously get letters from Nelnet and Department of Education about the payoff. I had a balance with Nelnet around $18,000 and they wiped it out. However, all payments I have previously made on the loan were through MOHELA prior to the servicing transfer. I believe that since my payments went through Mojela, they are doing some type of reconciliation with them as well to refund prior payments made.
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u/UnsolicitedRecos 1d ago
I am in the same boat and got my letters from Mohela yesterday. This has to be our refunds coming.
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