Consumer complaint received 2025-06-08 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA
State: VA

Complaint narrative:
Loan Servicer : MOHELA To : Whom It May Concern I am writing to file a formal complaint regarding the gross mishandling of my student loan account and to formally dispute the validity and amount of the debt currently being reported by MOHELA. The information on my account is riddled with inaccuracies, the claimed balance is inexplicable, and I request a full investigation leading to the complete discharge of this alleged debt. 
XXXX. Discrepancy in Original Loan Amount vs. Amount Claimed The foundation of this dispute is the factual amount of my original student loans. I attended the XXXX  XXXX XXXX and XXXX XXXX XXXX XXXX  between XX/XX/XXXX and XX/XX/XXXX. My total disbursed student loan amount was {$29000.00}. 
However, MOHELA has previously claimed I owed a staggering {$69000.00}. There is no historical data or justification provided for how my original, documented loans of {$29000.00} could have possibly inflated to this amount. I demand a complete, line-by-line accounting of the principal, interest, and fees that resulted in this figure. 
2. Complete Lack of Federal Records for 17 Years I contend that I paid my original loan obligation in full. Supporting this is the fact that the U.S. Department of Education has admitted it has no records of my loan payments or account status for the XXXX period between XX/XX/XXXX, and XX/XX/XXXX. A XXXX XXXX  in federal records is not a simple error ; it is a catastrophic failure of record-keeping. The burden of proof lies with the creditor, and the absence of any records during a period in which I was actively repaying my loan strongly suggests the obligation was satisfied. The claim that I made " XXXX payments '' during my loan 's history is patently false and defamatory. 
XXXX. Coerced Consolidation Under Duress In XX/XX/XXXX, after nearly XXXX decades of silence, I was contacted about this alleged debt while I was medically incapacitated and hospitalized. Since that time, I have been in a constant state of dispute, which has resulted in unjust wage garnishment and the seizure of my tax refunds. 
In XXXX, I applied for a Direct Consolidation Loan for the sole and explicitly stated purpose of removing the loan from a default status I have always contested. This was a procedural move made under duress, primarily to become eligible for Public Service Loan Forgiveness ( PSLF ), as I have been an educator for over 20 years. At the time of the consolidation application, I explicitly stated that I did not agree with the validity of the debt or the amount claimed ( {$40000.00} at that time ). My consolidation was an act of mitigation to escape punitive collection actions, not an admission of a valid debt. 
XXXX. Inexplicable and Contradictory Loan Balances The amounts I have been told I owe have changed dramatically without explanation : Initial Claim : {$69000.00} Consolidation Amount ( XXXX ) : {$40000.00} Current Amount ( Post-Forbearance ) : {$45000.00} How can an alleged original debt of nearly {$70000.00} suddenly become {$40000.00} for consolidation? And how can it accrue over {$5000.00} in interest during a forbearance period on a loan whose very existence is in dispute? These wild fluctuations demonstrate that the figures are arbitrary and not based on a legitimate accounting of a valid loan. 
XXXX. Failure to Address the Core Dispute Every attempt I have made to dispute this issue has been met with a response that only addresses the recent consolidation loan. My core claimthat the original debt is invalid and not owed in the first placeis consistently ignored. This is an unacceptable and evasive tactic. 
Resolution Demanded I am being financially coerced. If I pay this alleged debt, I am acknowledging a fraudulent claim. If I do not, my credit and financial standing are damaged by your inaccurate reporting. This is untenable. I have outlined the dates and amounts of my original loan amounts and dispersals below : XXXX XXXX XXXX XXXX  ( XXXX ) XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX ( XXXX XXXX XXXX of XXXX XXXX XXXX XXXX XXXX XXXX  XXXX Data from Department of EducationXXXX records of loan status and payments from XXXX XXXX. Default but no reported payments when tax returns and wages were garnished and offset. 


Based on the evidence presented, I demand the following actions : A full and complete investigation into the history of my original loans ( {$29000.00} ) from XXXX to the present. This investigation must not be limited to the post-consolidation period. 
Provide concrete, verifiable proof of debt that reconciles the original {$29000.00} with the current {$45000.00} balance, including a full payment history and an explanation for the XXXX XXXX  in federal records. 
Given the catastrophic failure of record-keeping and the baseless figures reported, I demand a complete discharge of the entire alleged loan balance. 
Immediately place my account in a non-interest-accruing administrative forbearance and cease all negative reporting to credit bureaus until this dispute is fully resolved. 

I expect a substantive response that addresses each point in this complaint within 30 days. I am forwarding this complaint to the Consumer Financial Protection Bureau ( CFPB ) and my elected officials. 


Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation