I am filing a complaint regarding my federal student loan servicer, MOHELA, for failure to process an approved Borrower Defense to Repayment and Debt Relief discharge and issue my required refund. My Borrower Defense application was approved in XX/XX/year>, and as part of that approval, I am owed a refund in excess of {$15000.00} for payments made on the discharged loans. Despite this approval being issued months ago, MOHELA has not completed the discharge process or released my refund. Since the approval, I have contacted MOHELA numerous times and have spoken with multiple customer service representatives and supervisors. No one has been able to provide a clear explanation for why my account has not progressed, why my refund is being delayed, or when the matter will be resolved. I have not received any written correspondence or meaningful updates, despite repeated follow-ups. This prolonged delay and lack of transparency are causing significant financial harm and distress.…
CFPB COMPLAINT DATABASE
MOHELA
895 real consumer complaints filed against MOHELA at the Consumer Financial Protection Bureau in the last 12 months. 6 received relief from the company. Median federal response time: 15 days.
Most common issues
- 01Dealing with your lender or servicer588
- 02Struggling to repay your loan160
- 03Incorrect information on your report80
- 04Problem with a company's investigation into an existing problem22
- 05Attempts to collect debt not owed8
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Recent complaints
The 30 most recent complaints against MOHELA where the consumer chose to publish their narrative.
I am writing to formally escalate an unresolved issue with MOHELA that has persisted since XX/XX/XXXX, despite over 12 written requests and multiple phone calls. I have clearly and repeatedly requested a specific account verification letter, yet MOHELA continues to send me generic financial activity statements that do not meet my request. The requested letter must include ALL of the following : -Lenders official letterhead -Date of issuance -Account holders full name and address : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX -Account number : XXXX -Detailed record of payments from XX/XX/XXXX to present, including : -Dates of each payment -Amounts of each payment -Clear identification of which loans the payments were applied to Specific payments that must be included : XX/XX/XXXX {$12000.00} XXXX XXXX Direct Loan XX/XX/XXXX {$5100.00} XXXX XXXX Direct Loan XXXXXX/XX/XXXX {$1000.00} XXXX XXXX Direct Loan XXXXXX/XX/XXXX {$1000.00} XXXX XXXX Direct Loan All of this information is…
My federal loans were forgiven through Mohela on XX/XX/XXXX. I am due a refund of {$560.00}. I originally called in XXXX of XXXX to see if I could find out why it hadnt been issued. I was told that they had 90 days to submit the refund to their internal refund department, who would then approve the refund to then be sent to the Department of Treasury to issue the check. When I asked why it hadnt been completed, I was told that they had 90 days not including weekends and government holidays so that my actual 90 days would be XX/XX/XXXX. Upon not receiving the check, I called again in XXXX to be transferred to a supervisor. The supervisor claimed she would escalate my case and file a complaint. I then submitted feedback in XXXX when I heard nothing again. Only to receive the letter that I have attached. I called back again on XX/XX/XXXX and again was sent to a supervisor who informed me she couldnt see a query pending for me.…
I am filing a complaint regarding inaccurate delinquency reporting on my student loan account due to a servicing failure by MOHELA. Both of my loans were enrolled in autopay for an extended period with a perfect, consistent history of on-time payments. Following a known MOHELA system servicing issue in XXXX XXXX I re-enrolled both loans in autopay and received confirmation that autopay was active. However, autopay resumed on only one loan. The second loan did not process payments despite confirmed enrollment. I received no notification of a failed autopay, missed payment, or delinquency during this time. Approximately 90 days later, I was informed that the account was delinquent. I immediately made payment to bring the account current. The issue was not nonpayment, but a failure of the servicers autopay system combined with lack of notification.…
Issue : Federal student loan XXXX buyback processing delay / failure to process Company : XXXX XXXX. of Education Complaint : I am submitting a complaint regarding a severely delayed XXXX XXXX XXXX XXXX XXXX XXXX ) buyback request that has been pending for over XXXX year without resolution. I have XXXX qualifying XXXX payments and well over XXXX months of qualifying public service employment. I submitted a XXXX buyback request in XX/XX/year> in order to receive credit for additional eligible months that would bring me to XXXX qualifying payments and immediate forgiveness. My account was placed in escalated status in XX/XX/year>. Since that time, I have received no meaningful updates, no timeline for resolution, and no indication that my request is actively being processed. Repeated attempts to obtain status updates have not provided any substantive information. Based on current XXXX buyback rules, I am eligible for forgiveness upon completion of the buyback process.…
To Whom It May Concern, I am submitting this letter as a formal Notice of Error and Request for Investigation regarding my federal student loans serviced by MOHELA. In XXXX, XXXX, XXXX, and XXXX of XXXX, I received official written disclosures from MOHELA reflecting my loan balance of approximately {$170000.00}, with an interest rate listed as XXXX percent. These disclosures materially informed my decision to transition from the XXXX repayment plan to the XXXX XXXX repayment plan. On XX/XX/XXXX, I received documentation that showed my current balances leading up to that time, which showed no change from my loan amounts I had received in XX/XX/XXXX and earlier. This can be reflected in the attached documents to this letter ; these are all official notices I received electronically from my servicer MOHELA. I had also received paperwork on XX/XX/XXXX and XX/XX/XXXX of XXXX still showing the same current balances on my loans.…
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Subject : * * Borrower Defense Application Missed Decision Deadline, Status Clarification, and Request for Immediate Determination To Whom It May Concern, I am writing to formally request an update and resolution regarding my XXXX XXXX to Repayment application associated with my attendance at the University XXXX XXXX. I submitted my application on XX/XX/XXXX, and it has remained in in review status continuously since that date. As of today, XX/XX/XXXX, my application has been pending for over XXXX years with no updates, no requests for additional information, and no determination issued. Under the XXXX v. XXXX settlement, my understanding is that post-class applicants are to receive a decision within XXXX years of submission.…
XX/XX/year> AMOUNTS XXXX Debt to Mohela XXXX XXXX of XXXX and Technology I experience a financial hardship that resulted in a loss of income, and as a result, I have been unable to meet my payment obligations. This was not intentional, and I take my responsibilities seriously. and I am currently working toward improving my situation so I can resume payments as soon as possible.
Around XX/XX/year>, I sent a letter to Mohela asking them to verify the debt. In the letter they were asked to cease and desist contacting me. They've continued to call, leave voice mails and email me on a frequent basis. I've included a subset of the calls which were up to XXXX times in a day. Mohela XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX
I consolidated my federal student loans in XX/XX/year> after being advised that my prior PSLF qualifying payments would be credited under the IDR/PSLF adjustment. As of today, my PSLF payment count has not been updated to reflect my prior qualifying payments, and my monthly payment has increased. I have contacted MOHELA previously and no corrective action has been taken. I am requesting a full review of my account, correction of my PSLF qualifying payment count, and placement on the correct income-driven repayment plan.
I have been placed into administrative forbearance as a result of federal processing delays and policy transitions. This status was imposed without my request or consent. Despite this, interest continues to accrue, and I have been advised that these months may not qualify toward Public Service Loan Forgiveness ( PSLF ) absent future discretionary adjustments. This situation is fundamentally inequitable. I am being financially harmed through interest accrual while simultaneously being denied clear credit toward PSLF for months during which I would otherwise be making qualifying payments. Borrowers should not bear the consequences of administrative or governmental delays. The current handling of my account creates material financial harm, lacks transparency, and undermines the statutory purpose of PSLF.
This is my second complaint regarding my student loan servicer, MOHELA, and their ongoing failure to correct a verified account error. Since XX/XX/XXXX, my account has been incorrectly reported as delinquent despite my making all required payments on time and in surplus. I have contacted MOHELA by phone more than eight times, and in every instance, their representatives have confirmed that my payments were successfully received and applied. I have bank records to verify all payments. Despite these confirmations, my account continues to reflect a delinquent status in error, and I continue to receive calls stating I am more than 110 days past due. I was explicitly told my account would not be sent to collections ; however, collection-related communications persist. I previously filed a complaint with the Consumer Financial Protection Bureau on XX/XX/XXXX ( Complaint ID : XXXX ), which did not result in resolution. An internal case with MOHELA was reportedly assigned on XX/XX/XXXX.…
I am pursuing Public Service Loan Forgiveness ( PSLF ). My PSLF employment certification has been processed, but my payment tracker is missing a block of months from XX/XX/XXXXXXXX through XX/XX/XXXX. These months do not appear as qualifying or ineligible they are not displayed at all. My XXXX XXXX shows I was placed in administrative forbearance in XXXX XXXX related to XXXX processing, followed by repayment status. I contacted MOHELA and was told they no longer handle PSLF counts and that I should contact Federal Student Aid. However, no action was taken to correct or review the missing months. The Federal Student Aid website continually crashes and will not allow a request for PSLF reconsideration or recount. I am requesting a formal review and correction of my PSLF payment count to ensure all months are properly evaluated and reflected.
This is a follow-up to complaint # XXXX. The issue remains unresolved. MOHELA continues to report inaccurate late payments across multiple accounts from XXXX. This is severely impacting my credit and my ability to qualify for housing. I am requesting a full investigation and correction of all inaccurate late payments, or documented proof validating each reported delinquency across ALL accounts.
On XX/XX/XXXX, I filed a Federal Student Loan Discharge with MOHELA, hoping that the matter would be taken seriously, investigated thoroughly, and a fair decision rendered. Instead, my case was mismanaged, with privacy breaches, violations of laws, and regulatory standards. MOHELA sent another Student 's Loan Discharge Response to my address, including her Student Loan ID Number and Student Loan Balances ( Copy of Letter Attached ). Here are some of the Laws that MOHELA may be breaking : 1. Gramm-Leach-Bliley Act ( GLBA ) - Safeguards Rule As a financial institution and loan servicer, MOHELA must comply with the GLBA. What it does : Requires financial institutions to protect the security, confidentiality, and integrity of consumer information. The Violation : Sending sensitive financial data ( discharge status, account numbers, balances ) to the wrong person constitutes a failure to secure nonpublic personal information. 2.…
To Whom It May Concern, Consumer Financial Protection Bureau ( CFPB ) I am writing to follow up on my previously submitted complaint against MOHELA regarding the wrongful negative credit reporting on my federal student loan account ( RE : XXXX ). Following my initial CFPB complaint, I received a response letter from MOHELA dated XX/XX/year>. In that letter, MOHELA declined my goodwill request to remove the negative credit reporting, stating that as an Information Furnisher for the U.S. Department of Education, they are obligated to report accurately and can not remove correctly reported information. I respectfully submit that MOHELA 's response is inadequate and does not address the full context and circumstances of my situation. I am requesting that the CFPB review this matter further.…
XXXX and Mohela have both failed to serve as my loan servicers, not only failing to inform me of ways to apply for the School Misconduct, but failing to provide the form in a timely manner. Furthermore, after submitting the application, I was denied for reasons that are inconsistent and obscure, and I would like a through explanation as to why I was denied since I have provided all information that they needed and it's obvious that the Art Institutes have already been charged by the US Government with misconduct. My private student loans should have been discharged since XXXX, but it is XXXX and I continue to be defrauded by both XXXX and Mohela.
I am filing this complaint regarding a significant and unresolved delay in processing my Public Service Loan Forgiveness ( PSLF ) Buyback requests, which were originally submitted on XX/XX/year> to Federal Student Aid. While a partial resolution occurred on XX/XX/year> ( Case # XXXX ), which resulted in the forgiveness of two of my loans, two other qualifying loans were omitted and remain stuck in " pending '' status despite meeting the program requirements. The Unresolved Loans : Award ID : XXXX ( Loan dispersed over 10 years ago ; only 5 payments remaining ) Award ID : XXXX ( Loan dispersed over 10 years ago ; only 17 payments remaining ) The delay is centered on a period where these loans were placed in a " deferred '' status even though I made several requests to be placed in " repayment '' status. This prevented me from making qualifying payments. I have been attempting to use the Buyback process to correct this for over a year.…
To Whom it May Concern : Please let this letter serve as a formal complaint to Mohela and the Department of Education about an issue I have had with several student loans under one account. We made at least 5 lengthy phone calls with Mohela that did not yield clarity or a resolution. Four loans were issued on my behalf back in XXXX. The Master Promissory Notes included an accurate previous address of XXXX which my family has not lived in since XXXX. Any correspondence would have been forwarded for a year, but my mother received nothing. Correspondence about the loans themselves were sent to the address of my estranged father at XXXX. I am a XXXX and have the exact same name as my father. Because my father and I are estranged, he did not contact me about the correspondence that was mailed to him. Even if I had known about these loans, I would have never changed the address to my fathers address due to the nature of our relationship.…
I am a federal employee who has been working toward Public Service Loan Forgiveness ( PSLF ) for approximately 10 years. I submitted a PSLF Buyback application back in XX/XX/year> to cover prior periods of administrative forbearance that should have counted toward my 120 qualifying payments. Since submitting my Buyback request, I have received XXXX communication from my loan servicer ( MOHELA ) no acknowledgment, no status update, no offer, and no denial. The Department of Education advertises a 45-day processing time for Buyback applications. I am now approaching 16 months with no response. I recently contacted the student loan servicer and was told they could not locate or confirm the status of my application, raising concerns that it may have been miscategorized or lost entirely. I am 5 qualifying payments away from full PSLF discharge.…
On XX/XX/XXXX I made a payment for the full payoff amount on my loans : {$82000.00} The payment was applied incorrectly leaving an overpayment on XXXX loan and a balance on XXXX others. On XX/XX/XXXX I called to request they correct the problem. I was told this could take up to 90 days to process. They identified XX/XX/XXXX as their deadline for the correction to be processed. XX/XX/XXXX has since passed and no correction has been made. I called monthly during the period between XX/XX/XXXX to XX/XX/XXXX to request forbearances so I was not required to make payments and my account did not go into delinquency while I awaited the correction. On XX/XX/XXXX I called to request another forbearance and was told that I was being escalated to a team of supervisors. I received a callback from XXXX on XX/XX/XXXX around XXXX call ID XXXX. XXXX said she was escalating the correction and it would take up to 10 business days to process and would be completed by XX/XX/XXXX.…
I am submitting a complaint regarding the reporting of delinquent payments on my federal student loans serviced by MOHELA. My loans were reported as delinquent beginning in XX/XX/year>, which ultimately caused a significant drop in my credit score. However, I was not aware that my loans had entered repayment, and it appears I did not receive proper notification due to outdated address information on file at the time. This was my first issue of this kind, and I have otherwise maintained a strong history of managing my financial obligations responsibly. As soon as I became aware of the delinquencywhen I saw the impact on my credit in XXXX XXXXI immediately took action to bring the account current and ensure it remains in good standing going forward. Given the lack of effective notice and the fact that I acted promptly once aware, I am requesting that MOHELA conduct a thorough review of the credit reporting on this account for accuracy and fairness.…
Mohela I am filing this complaint against MOHELA for unconscionable servicing practices, including unauthorized bank drafts, " call deflection '' harassment, and a failure to provide transparent accounting. 1. The " Paid in Full '' Error : On XX/XX/XXXX, I received a formal " PAID IN FULL CONFIRMATION '' from MOHELA after a final payment of {$11000.00}. I relied on this official document to close my records. MOHELA later claimed this was an error due to a misapplied third-party payment they entered on XX/XX/XXXX. 2. " Shadow Accounting '' & Disclosure Failures : Upon investigation, I discovered a major discrepancy. MOHELAs online ledger shows a credit and reversal on XX/XX/XXXX, yet my official PDF periodic statements for that timeframe omit these transactions entirely. This lack of transparency prevented me from detecting their error and violates basic disclosure requirements. 3.…
I am submitting this complaint regarding ongoing servicing and credit reporting errors by MOHELA related to my federal student loan account. I am enrolled in autopay and have consistently maintained sufficient funds and made all required payments on time. Despite this, MOHELA has failed to properly process and/or apply my payments due to what appears to be internal system issues. This issue has been ongoing for approximately XXXX ( XXXX ) months. During this time, I have contacted MOHELA multiple times to report and resolve the issue. Each time, I was told that the matter would be reviewed or escalated, but no resolution has been provided. As of todays call, I was informed that there is nothing MOHELA can do other than submitting the issue to an internal team, and I was not provided any timeline for resolution. Meanwhile, MOHELA has reported my account as delinquent to credit bureaus for at least XXXX ( XXXX ) months.…
All calls to Mohela were to customer service at XXXX regarding past due notice and past due account that is not past due. Below find my calls to Mohela. I have attached screen shots from the website showing their sit shows me past due, default letter and a screen shot of the payments posted. XX/XX/XXXX XXXX XXXX transferred to XXXX XXXX, escalation supervisor- Explained ot her all my payments have been drafted each month on an ACH form my bank account and no payments have been returned. I am not behind o payments. She reviewed the account and stated and she could see their was an error on their end and sending a request to account to research. Will take 7-10 business days. XX/XX/XXXX XXXX I checked my account and it still showed past due. I called Mohela and was transferred to advanced representative XXXX. She informed, the review can take up to 90 days. XX/XX/XXXX XXXX Mohela spoke with escalation supervisor XXXX.…
After the federal student loan payment pause ended, MOHELA resumed billing on my two XXXX XXXX loans ( total balance approximately {$810.00} ). I was not adequately notified that payments were due, and MOHELA reported 7 months of delinquencies to credit bureaus, severely damaging my previously excellent credit score. A review of my complete email history confirms that MOHELA never sent me a single email notification about missed payments, approaching delinquency, or any account alerts during the entire 7-month delinquency period ( XX/XX/XXXX through XX/XX/XXXX ). The only emails I ever received from MOHELA were payment confirmations sent on XX/XX/XXXX the day I discovered the problem and paid. Prior communications came only from the U.S. Department of Education, with the last relevant email dated XX/XX/XXXX, regarding the end of student loan protections.…
I am pursuing XXXX XXXX XXXX XXXX with XXXX qualifying payments. My monthly IDR payment of {$1200.00} was due XX/XX/year>. Before I could make that payment, MOHELA processed my XXXX recertification on approximately XX/XX/year> and reset my repayment schedule, wiping the XXXX due date. My account now shows {$0.00} due with the next payment due XX/XX/year>. MOHELA 's own account statement dated XX/XX/year> lists {$1200.00} as Amount Past Due, confirming the XXXX obligation existed. MOHELA 's Repayment Schedule Change letter dated XX/XX/year> states amounts due under the prior schedule remain due unless paid or deferred. XXXX still showed {$1200.00} due on XX/XX/year> as of XX/XX/year>. MOHELA then informed me via secure message that my account was placed in XXXX XXXX for XX/XX/year>, ending XX/XX/year>. This forbearance was applied retroactively without my consent to a billing period where a due date had already passed.…
I have a federal student loan serviced by Mohela. During the federal student loan payment pause, my payments were suspended in accordance with government policy. When payments resumed, Mohela failed to notify me that a payment was due. I was unaware of any outstanding balance or payment deadline, as my contact information on file was not up to date and Mohela made no additional effort to reach me through alternative means. Despite this lack of notification, Mohela reported my account as XXXX days past due to the credit bureaus. Since being made aware of the resumed payments, I have updated my contact information with Mohela and have made consistent, on time payments with no further issues. This demonstrates that the original delinquency was not a matter of unwillingness to pay, but solely a result of Mohela 's failure to properly notify me.…
Mohela did not respond to my previous complaint : XXXX Now, they've sent deliquency reports to credit bureaus on loans I do not owe that are in ACTIVE dispute. I consolidated by deadline for the XXXX adjustment to benefit from the highest number of payments. See complaint XXXX for those details. When I consolidated I agreed to an XXXX plan ( SAVE which is now not available ). I applied for XXXX in XX/XX/year> that is still " in review ''. Without being in an XXXX plan, pslf will not apply the previous payments from certified employment because I am not on the right repayment plan for eligibility. So, as such, the loan forgiveness LEGALLY UNDER XXXX is being obstructed. The guidance I get is to certify employment! No one will help me.…
I am a student loan borrower residing in XXXX North Carolina, an area severely impacted by XXXX XXXX ( FEMA-XXXX ). Under the provisions of the HEROES Act, I requested a Natural Disaster Administrative Forbearance to cover the period from XX/XX/XXXX through XX/XX/XXXX. My loan servicer, MOHELA, denied this request, stating they can only apply forbearance for a maximum of 120 days. This limitation directly contradicts federal guidance for disaster survivors, where relief is typically granted in 90-day increments and can be extended for up to 12 monthly billing cycles ( one year ) to match the recovery period recognized by the IRS and FEMA. Furthermore, MOHELA incorrectly informed me that this time would not count toward XXXX XXXX XXXX XXXX ( XXXX ) or Income-Driven Repayment ( XXXX ) forgiveness. Per Department of Education policy, disaster-related administrative forbearance months ARE qualifying months for these programs.…
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