Consumer complaint received 2025-05-30 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: CA

Complaint narrative:
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/2025 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 : Failure to process my Income-Driven Repayment ( IDR ) application on time. Customer service representatives have consistently provided inaccurate and misleading information, leading to confusion and the submission of repayment plans that are financially detrimental. Inquiries are met with delayed or vague responses, and MOHELA takes unreasonably long to address even basic questions or requests. 
Persistent mismanagement of my Public Service Loan Forgiveness ( PSLF ) paperwork. Despite fulfilling my employment and payment obligations under the PSLF program, MOHELA has been inefficient and careless in processing my documentation. The information they provide regarding PSLF eligibility and status is often incorrect, inconsistent, or incomplete.

Extreme difficulty in reaching a live representative. Wait times to speak with a customer service agent frequently extend into several hours. When I am finally able to connect with someone, the quality of assistance is often poor, and follow-up on issues can take months, if it occurs at all. 
Overall lack of accountability and responsiveness. The burden of constantly following up, re-submitting forms, and correcting MOHELAs administrative errors falls entirely on me as the borrower. The entire process has been mentally exhausting, financially harmful, and emotionally stressful. 
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.

Company response to consumer: Closed with explanation