Consumer complaint received 2025-10-09 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Can't temporarily delay making payments
Company: MOHELA
State: LA

Complaint narrative:
I am filing this complaint regarding the handling of my student loan by MOHELA. I am experiencing significant financial hardship and have attempted to work with MOHELA for assistance, but they have been uncooperative and dismissive of my situation. 

MOHELA informed me that I have used up all available deferment and forbearance options, and that the only way I can qualify for additional relief is if I lose my job. This response is unreasonable and fails to take into account my current financial reality. I am struggling with multiple financial obligations, including medical bills, a mortgage, and other essential expenses that must be paid to maintain basic stability as I have been for a very long time. 

Despite this, MOHELA has informed me that I must begin making payments of {$56.00} per month starting on XX/XX/year>, with an initial payment of {$220.00}, which includes fees. I was only notified of this on XXXX via my account inbox only giving me very little notice to do anything. Although it may seem like very little to some, I can not afford these paymentsnot the initial amount nor the ongoing monthly paymentat this time or in the foreseeable future. 

What is most concerning is that MOHELA calculated this payment amount without asking for or reviewing my actual financial situation or expenses. This approach is unfair, especially for borrowers who are in genuine financial distress and seeking reasonable relief options. 

In addition, I recently discovered that MOHELA has reported several late payments on my credit report. I was not aware that my loan had been transferred from XXXX to MOHELA, and I did not receive any timely communication notifying me of this transfer. I was not even sent notice via mail nor email. Because of that, I had no opportunity to make payments or set up my account appropriately. When I learned of these late payments, I requested in writing that MOHELA remove them from my credit report, but to date, they have not responded or taken any corrective action. 

This has caused significant emotional stress and financial harm. I am doing everything I can to stay current on my essential bills, but MOHELAs unwillingness to provide flexibility or review my hardship has left me in an impossible position. I also received a modification on my mortgage a few months ago which proves that I have been having a financial hardship. 

I am requesting that the CFPB review MOHELAs handling of my account and require that they : Reevaluate my eligibility for forbearance or deferment based on my documented financial hardship. 

Remove all inaccurate late payment entries from my credit report that resulted from the transfer from XXXX. 

Recalculate my payment plan based on a full and accurate assessment of my income and essential expenses- which can be {$0.00} per month if qualified. 

Provide clear, timely, and written communication about any future changes or requirements related to my loan. 

I have been proactive and transparent about my inability to make payments, but MOHELA has offered no reasonable accommodation or compassion in this matter. I am asking for fair treatment and for my account to be reviewed with consideration of the financial hardship I am facing. 

Thank you for your time and attention to this matter.

Company response to consumer: Closed with explanation