Consumer complaint received 2025-05-14 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: MOHELA
State: KS

Complaint narrative:
I am filing this complaint due to XXXX continued failure to properly process my federally approved XXXX XXXX to Repayment loan discharge, and their direct contradiction of documented instructions from the XXXX Department of Education. Despite repeated communications and internal documentation acknowledging this discharge, MOHELA has kept my loans in repayment status and issued billing notifications, including a scheduled payment due within 17 days. 

Here is a summary of events : On XX/XX/year>, I submitted a secure message to MOHELA and attached my official discharge letter from the Department of Education, confirming that my XXXX XXXX application had been approved and my loans were fully discharged. Despite this, MOHELA claimed they had no record of this discharge and made no adjustments to my account. 

On XX/XX/year>, MOHELA sent me a secure message titled Discharge : Borrower Defense ( BD ), stating that Federal Student Aid ( FSA ) instructed them to place my account in a non-interest-capping forbearance through XX/XX/year>. The message explicitly stated that this was per Department of Education instruction and that the forbearance would remain in place unless my loans were not XXXX. This message directly contradicts their earlier claim that they had no information. 

On XX/XX/year>, just XXXX days later, MOHELA issued a billing notice with a full repayment schedule extending through XXXX. This directly contradicted the protections outlined in the XX/XX/XXXX message and suggested MOHELA had either failed to apply the forbearance or was ignoring it entirely. The billing breakdown was extensive and inappropriate, given the discharge status. 

On XX/XX/year>, MOHELA sent another message nearly identical to the XX/XX/XXXX message, again confirming that XXXX had directed them to place my loans in non-interest-capping forbearance through XX/XX/year>. 

On XX/XX/year>, I sent another secure message through MOHELAs portal asking why I was now being scheduled for repaymentdespite the acknowledged forbearanceand noted that my account showed a payment due in 17 days. As of this filing, MOHELA has not responded. 

This pattern of behavior is unacceptable. My loans have been XXXX under a formal program by the Department of Education. MOHELA has acknowledged receiving this directive from XXXX in writing but has failed to update my account to reflect that. They continue to issue repayment notices and create confusion and potential risk of erroneous credit reporting or collection activity. 

I have taken multiple steps to resolve this issue : Submitted secure messages with documentation on XX/XX/year> ; Provided a copy of the official discharge letter ; Followed up repeatedly, including XX/XX/year> ; Filed a formal feedback case with Federal Student Aid, which remains unresolved. 

I can provide supporting documentation upon request, including the discharge letter, the XX/XX/XXXX billing breakdown, and copies of all relevant MOHELA messages.

Company response to consumer: Closed with explanation