Consumer complaint received 2026-05-18 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with forgiveness, cancellation, or discharge
Company: MOHELA
State: TX

Complaint narrative:
I am submitting this formal complaint to XXXX XXXX XXXX regarding the handling, servicing, administration, and legal posture surrounding my federal student loans serviced by MOHELA. My current student loan balance is approximately {$270000.00}. I believe I have been materially harmed by MOHELAs conduct, including but not limited to improper account handling, inadequate servicing, failure to provide clear and accurate information, administrative mismanagement, and actions connected to litigation and filings that have negatively affected borrowers like me. I am requesting that XXXX XXXX XXXX conduct a full administrative investigation into MOHELAs servicing of my account, including a complete audit of my loan history, payment history, repayment-plan processing, interest accrual, capitalization events, forbearance or deferment placements, communications, credit reporting, forgiveness eligibility, and any administrative decisions that may have increased my balance, delayed relief, impaired my rights, or caused financial harm. I further request that Federal Student Aid review whether MOHELAs conduct violated any applicable federal student loan servicing standards, contractual obligations owed to the U.S. Department of Education, borrower protections under the Higher Education Act, federal consumer protection principles, administrative due process requirements, or any other applicable laws, regulations, guidance, or servicing requirements governing federal student loan servicers. My complaint is based on the following concerns : Improper and Harmful Loan Servicing I believe MOHELAs handling of my student loans has caused substantial financial harm. I am requesting that FSA determine whether MOHELA failed to properly administer my account, failed to provide accurate information, failed to timely process requests, failed to properly apply payments or account adjustments, or otherwise engaged in servicing conduct that caused my balance to increase or prevented me from accessing available relief. Failure to Provide Accurate, Clear, and Reliable Borrower Information As a borrower, I am entitled to accurate and reliable information concerning my repayment options, forgiveness eligibility, loan status, payment obligations, and available administrative remedies. I believe MOHELAs conduct may have deprived me of clear and accurate guidance, causing confusion, delay, financial hardship, and possible loss of borrower benefits. Potential Misapplication of Payments, Interest, Forbearance, or Repayment Status I request a full accounting of whether my payments, repayment-plan status, interest accrual, deferment periods, forbearance periods, and any capitalization events were handled correctly. If MOHELA placed my account into any administrative forbearance, processing forbearance, deferment, or other status without proper notice, consent, explanation, or legal basis, I request that FSA correct the account and remove any resulting interest, fees, delinquency, or negative consequences. Harm Related to MOHELAs Litigation Conduct and Administrative Positioning I am also concerned that MOHELAs involvement in litigation and related filings concerning federal student loan relief has contributed to borrower harm. To the extent MOHELAs legal actions, representations, filings, or administrative conduct delayed, obstructed, impaired, or complicated borrower relief, I request that FSA investigate whether such conduct violated MOHELAs duties as a federal student loan servicer and whether borrowers, including myself, are entitled to corrective relief. Financial Injury and Request for Equitable Relief My current balance of approximately {$270000.00} is financially devastating. I believe this debt has been affected by unlawful, improper, or inequitable servicing conduct. I am requesting full relief, including complete discharge or cancellation of my remaining federal student loan debt, if FSA determines that MOHELAs conduct caused or contributed to the balance, delayed forgiveness, denied me access to repayment or relief options, or otherwise harmed me as a borrower. In the alternative, if full discharge is not immediately granted, I request the following corrective actions : A. A complete audit of my account from origination to the present ; B. A written explanation of every loan, balance, interest accrual, capitalization event, payment application, repayment-plan change, deferment, forbearance, delinquency, and servicer transfer ; C. Removal of any improperly accrued interest, fees, capitalization, or negative credit reporting ; D. Correction of any inaccurate repayment status, payment count, forgiveness count, or program eligibility determination ; E. Restoration of any lost borrower benefits, forgiveness credit, payment credit, or repayment-plan eligibility ; F. Placement of my account into an appropriate administrative hold or forbearance during the investigation, with no negative credit reporting, collection activity, or additional borrower harm ; G. Written confirmation of all findings and corrective actions taken ; H. Escalation of this complaint to the FSA Ombudsman Group if the matter can not be fully resolved at the initial complaint level. I am requesting that Federal Student Aid treat this complaint as a formal dispute and request for administrative review. I further request that all relevant records be preserved, including call recordings, account notes, internal servicing records, correspondence, payment records, transfer records, processing records, legal communications affecting borrower accounts, and any documents related to MOHELAs servicing decisions concerning my loans. I am not merely requesting a general explanation of my balance. I am requesting a full investigation into whether my account was lawfully, accurately, and fairly serviced. If the investigation confirms that MOHELAs actions or omissions caused financial harm, denied me access to relief, increased my balance, delayed forgiveness, or violated federal servicing obligations, I request that my debt be fully discharged or otherwise corrected to the maximum extent permitted by law. Requested Resolution : I respectfully request that Federal Student Aid : Investigate MOHELAs handling of my student loan account ; Conduct a full audit of my loan history and servicing records ; Determine whether MOHELAs conduct violated federal servicing requirements or borrower protections ; Correct all errors, remove improper interest and negative consequences, and restore all borrower benefits ; Place my account in protected administrative status during review ; Provide a written response with findings and supporting documentation ; Grant full discharge or cancellation of my approximately {$270000.00} student loan balance if unlawful, improper, or harmful servicing conduct is confirmed. I am submitting this complaint in good faith and request a prompt, thorough, and documented response.

Company response to consumer: Untimely response