Consumer complaint received 2025-11-25 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA
State: CA

Complaint narrative:
XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX ( XXXX ) XXXX XX/XX/year> To Whom It XXXX Concern : Subject : Formal Complaint and Request for Federal Student Loan Discharge Due to MOHELA Mismanagement and Abusive Practices I am writing to formally lodge a complaint regarding the mismanagement of my federal student loans by MOHELA ( Missouri Higher Education Loan Authority ), and to request a full investigation into my account as well as a discharge of the affected loan balance ( s ). This request is based on widespread allegations and recent investigations reported as of XX/XX/year> concerning MOHELAs misconduct, which has significantly harmed borrowers including myself both financially and emotionally. 
According to recent public reports and investigations by multiple state attorneys general and regulators, MOHELA has been cited for : Failing to properly calculate monthly payments Issuing inaccurate bills and late fees Mishandling income-driven repayment ( IDR ) paperwork Delays and errors in processing recertification forms Providing inaccurate or misleading information about repayment and forgiveness options Creating unnecessary delinquencies and defaults due to administrative failures These systemic issues mirror my own experience with MOHELA. Specifically, I have experienced the following issues with my account : XXXX XXXX XXXX  misled me regarding financial aid and the true cost of attendance. Every semester, the university assigned me a new financial-aid representative who required me to sign new and inconsistent financial-aid documents. I was repeatedly told that scholarships were unavailable to me with no clear explanation, even though I applied every year. Instead, staff consistently told me that I needed private loans in order to continue enrollment, leaving me with no real understanding of other aid options. 
As a low-income student, I relied on the university to provide accurate and transparent financial-aid information. Instead, the information I received was inconsistent, misleading, and pressured me into taking private loans I did not need. These practices led me to graduate with over {$87000.00} in student loan debt that could have been substantially lower if the school had handled my aid properly and honestly. 
The schools misleading guidance, constant changes in aid representatives, denial of scholarship information, and pressure to use private loans significantly influenced my decision to enroll and remain enrolled. 
I have made repeated efforts to resolve these issues directly with MOHELA, but the problems persist. Their negligence has not only jeopardized my financial health, credit score, and access to federal benefits, but has also caused immense stress. Their actions or lack thereof constitute gross mismanagement, and I believe they violate my borrower rights under federal law. 
Given that MOHELA is currently under investigation for systemic abuses, I am requesting : 1. A full review and audit of my loan account ( s ) serviced by MOHELA 2. A formal response detailing corrective actions to resolve the errors on my account 3. Full discharge or forgiveness of the impacted loan balance ( s ) due to mismanagement and borrower harm 4. Compensation for fees, interest, or penalties accrued as a result of MOHELAs administrative errors 5. Confirmation that my eligibility for programs such as IDR, Public Service Loan Forgiveness ( PSLF ), or Fresh Start has not been compromised Please consider this letter a formal request for loan dispute resolution and borrower defense, and ensure that my rights under the Higher Education Act and applicable borrower protection laws are upheld. 
I am including documentation to support my complaint, including correspondence with MOHELA, billing statements, and any records of prior applications or disputes. If additional materials or forms are required, please notify me immediately. 
Thank you for your attention to this urgent matter. I respectfully request a timely response and resolution, and I welcome the opportunity to speak further with an investigator or caseworker. 
Sincerely, XXXX XXXX XXXX

Company response to consumer: Untimely response