Consumer complaint received 2025-10-30 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: CO

Complaint narrative:
Dear XXXX XXXX, Thank you for contacting the XXXX Department of Education XXXX XXXX XXXX XXXX Student Aid. This message is in reference to your inquiry regarding payment count adjustments toward loan forgiveness. Your case number is # XXXX. Retain this number for reference. 

Yes, as of XX/XX/XXXX, our records show that you have made XXXX of the required XXXX monthly payments towards XXXX XXXX XXXX ( XXXX ) forgiveness. 

Your Direct Loan Consolidation was completed XX/XX/XXXX. The XXXX-time account adjustment was to be completed Fall XXXX. 

You will need to submit a complaint to our XXXX Department for further investigation into your eligibility for IDR forgiveness. 

The Federal Student Aid Feedback System is a tool for customers to report a complaint, compliment, or suspicious activity related to the office of Federal Student Aid ( FSA ). 

Your complaints are important to us. You can submit a complaint ( about an issue, suspicious activity, or scam ) or review an already-submitted case. 


Mohela keeps putting me in XXXX even after correspondence. Last correspondence from them noted a program I am not a part of. I have sent the following to both Mohela and FSA - FSA ( as stated above ) advised this Complaint. 


This was sent ( took out personal info ) XX/XX/XXXX to both Mohela and FSA - To Whom It XXXX Concern, I am requesting assistance regarding the handling of my federal student loans currently serviced by MOHELA. 
I consolidated my loans in XXXX, meeting the XX/XX/XXXX Deadline to qualify for loan forgiveness. 
Under the Department XXXX XXXX one-time payment count adjustment, I have been credited with over XXXX qualifying payments. Attaching screenshot from when the XXXX XXXX was available to view ( XX/XX/XXXX ) showing XXXX Payments. 
This count should make me immediately eligible for IDR forgiveness, which requires XXXX payments depending on the plan. 
I am not on SAVE as my consolidation put me in standard ( instead of processing forgiveness as the XXXX website indicated should happen when consolidating with over XXXX payments ). 
I have tried consolidating twice already to get this processed, only to end up in forbearance with a moving deadline. 
o I do not wish to be in forbearance. 
o I have loan interest accruing, affecting my XXXX XXXX. 
Despite this, MOHELA has now sent me a notice instructing me to submit additional XXXX application. This would be my third application, even though I have already met the threshold for forgiveness. 
Submitting another XXXX application as requested by Mohela does not give me confidence it will be processed in time to avoid tax consequences as Mohela seems to keep getting more and more time to process, without my request or desire, since the submission of my consolidation started being serviced by them XXXX. 
I am deeply concerned that these repeated requests are delaying the discharge of my loans unnecessarily. This delay is not only frustrating but could expose me to unnecessary tax implications ( tax XXXX ) if forgiveness is not processed promptly and properly. 
I respectfully request that the XXXX office : XXXX. Confirm that my payment count has been correctly applied under the XXXX-time adjustment and that I am eligible for forgiveness. 
XXXX. Intervene with MOHELA, if needed, to ensure my loans are XXXX without requiring repeated, redundant applications. 
XXXX. Provide written confirmation of my status and the next steps to secure forgiveness, if forgiveness can not be processed immediately. 
Thank you for your time and assistance. I trust that the Department of Education will uphold the policies designed to ensure fair and timely forgiveness for borrowers who have fulfilled their obligations. 

Since I am being placed in forbearance over and over again, my balance keeps going up rather than forgiveness being processed.

Company response to consumer: Untimely response