Consumer complaint received 2026-05-20 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA
State: OR

Complaint narrative:
I am submitting this complaint regarding the handling of my federal student loans, including servicing issues involving MOHELA, ongoing processing delays related to IDR/SAVE repayment applications, continued interest accrual, and negative credit impacts occurring during a period of major federal repayment policy changes. I believe the current handling of my account may constitute unfair and harmful servicing practices under federal consumer protection standards. I have made repeated good-faith efforts to remain compliant by submitting required documentation through XXXX and communicating with my loan servicer. However, despite my compliance, I continue to experience processing delays, inconsistent information, and financial harm caused by administrative failures outside of my control. Specifically : * My repayment applications and supporting documents have been repeatedly delayed or left unresolved. * Interest continues accruing while my account remains in administrative uncertainty. * My credit profile is being negatively impacted despite my active efforts to comply and resolve the issue. * Communication breakdowns between MOHELA and federal systems are being shifted onto me as the borrower to resolve. I request that CFPB review whether these actions violate protections against unfair, deceptive, or abusive acts or practices ( UDAAP ) under the Consumer Financial Protection Act, particularly where borrowers are financially harmed by servicing delays, inadequate communication, or inconsistent administration of federal repayment programs. I also request review under the Fair Credit Reporting Act ( FCRA ), as I dispute the fairness and accuracy of any negative credit reporting connected to unresolved administrative processing issues and changing federal repayment policies. Reporting borrowers as delinquent or allowing accruing damage during unresolved servicing disputes does not accurately reflect borrower behavior or willingness to pay. When I entered into federal student loan agreements, repayment protections and federal program structuresincluding access to income-driven repayment pathwayswere presented as part of the framework governing these loans. Rapid administrative and legislative changes, combined with servicing confusion and delayed processing, have materially affected borrowers like myself who relied on those representations in good faith. They are currently predatory on 100 % of my income at a monthly payment dog {$400.00}. I have already lost two jobs by this administration due to loss of funding. Now they request a monthly payment of {$400.00} a month when thats my entire income. Accordingly, I respectfully request : - Immediate investigation into my account servicing and application processing history. - Removal from my credit until federal proceedings abide by the law. As the consumer should not incur a reflection of negative practices- Temporary suppression, removal, or correction of adverse credit reporting connected to unresolved administrative or servicing issues. - Relief from interest accrual caused by processing delays outside of borrower control. - Clear written communication regarding the status of my repayment applications and rights as a borrower. -Accountability measures between federal systems and loan servicers so borrowers are not harmed by agency communication failures. I have acted in good faith throughout this process and do not believe my current credit reporting accurately reflects my financial conduct or repayment intentions. Federal legislation has put moves forward to abolish the Department of Education. Education is not a business. This is not okay and in no way should these predatory practices be a reflection of the consumer. No one is above the law and federal legislation must abide. Thank you

Company response to consumer: Untimely response