Consumer complaint received 2024-01-18
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA (NC)

My loan servicers have switched over three times since creation of loan. From the beginning with XXXX XXXX, I was never properly informed of the set rules for PSLF. The rules continue to change, and we loan borrowers are never told the correct information from the customer service line. 

My loan was switched from XXXX XXXX to XXXX XXXXXXXX where I was again, misinformed about what plan my loans should be under for PSLF forgiveness. I was never told a concrete time for when to submit forms from my employer to verify my work status nor told how payments counted towards PSLF. 

My loan switched for a third time to Mohela, which now has a lawsuit against them. They have already been fined by the federal government and are still lacking in support of student borrowers. I have tried numerous times to get a representative on the phone and the two times I was able to get through, it took half days of waiting while I had to work, and the customer service reps did not know correct information and I was given random info that did not match previous conversations with customer support from other carriers. 

On XX/XX/24 I went to login on Mohela 's website to see yet another change from the carrier, this time a message about another platform. They are stating that moving to a new platform to expect, yes again, more delays. 

As of today, XX/XX/24, I have attempted to call both Mohela and PSLF service lines. Mohela gives an automated response that their lines are busy, and the call disconnects and PSLF service line ( XXXX ) says they are too busy and disconnects. Neither line gives an option to give student borrower a call back. 

I have submitted my last verification of employment form for PSLF from my employer. Mohela nor PSLF are not picking up the phone for me to confirm the receipt on their side. They are then requesting another 90 days just to process the information. I am stuck in limbo with making payments as from my calculations if they would go ahead and process my last PSLF report, I would have hit the 120 payments mark. I see that they have taken years to get around to others employment verification forms and many people have overpaid and are still waiting for refunds years later. I do not want to fall into the overpayment group as Mohela appears to not be reimbursing borrowers fairly and are instead getting richer while sending out inaccurate payment information. 


Mohela had over a year to plan for bringing back student loans and have failed and caused us student borrowers more harm. I am now at a loss of what payment plan I should be under as things change on their website month to month. I do not trust that they are accurately keeping track of payments, nor do I trust their determination of what plan borrowers should go under. I was recommended the SAVE plan, however most people that transferred to this plan are required to pay 3x their original loan payment amount. 

If my employer is able to complete an employment verification form within less than two days time, I ask for Mohela to be held to the same standards of turnaround time. It should not take 3 months to give notification of receipt of employment verification and payment verification. 

Student borrowers are being taken advantage of as with every move to a new carrier, new rules are being implemented on the fly, and borrowers are not given the chance to question why. We keep being pressured to pay into corrupt carriers that can't even track our payments. 

Again, there is already a lawsuit out against Mohela. Is the CFPB looking into them. If not, you should.