Consumer complaint received 2025-09-22 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: NY

Complaint narrative:
To : Consumer Financial Protection Bureau Subject : Formal Complaint and Request for Loan Discharge Due to MOHELAs Servicing Violations and PSLF Mismanagement Dear Sir/Madam, I am writing to formally submit a complaint and request for relief regarding the servicing of my federal student loans by the Missouri Higher Education Loan Authority ( MOHELA ). I am a borrower whose loans have been managed by MOHELA and other servicers over time, and I believe my rights under federal law have been violated through a pattern of misrepresentation, mismanagement, and unauthorized servicing transfers. 
From XX/XX/XXXX to XX/XX/XXXX, I was employed by a qualifying Public Service organization and made consistent student loan payments during that period. However, representatives from MOHELA and other servicers provided misleading and inaccurate information regarding forgiveness in public service as well as the Public Service Loan Forgiveness ( PSLF ) eligibility and certification when it was reformed in XXXX. As a result, my payments were not properly credited toward PSLF, despite meeting the qualifying criteria. In previous years I have called and was misguided by the representatives of the servicing loans. Recently, on XX/XX/XXXX, I called Mohela and was on hold for one and a half hours, only to be connected to a representative who spoke condescendingly. I had many questions, and the representative did not make the call pleasant. I have had loans since XXXX, and this is not an easy process and has become very overwhelming, confusing and borrowers deserve to have representatives who are willing to answer questions as well as make the process understandable. Unfortunately, my last call was very difficult and emotionally draining. There is no reason why I should have waited almost two hours to speak to a live person, then spend another hour to learn the representative was not helpful and I needed to call back.

Additionally, my loans were transferred between multiple servicers without my knowledge or consent, which created significant confusion and obstructed my ability to obtain accurate information and maintain continuity in servicing. This lack of transparency and accountability has materially impacted my ability to manage my student loan obligations.

These actions constitute violations of : The Higher Education Act of 1965 ( 20 U.S.C. 1087e ), which guarantees borrower access to accurate servicing and PSLF benefits Borrower defense protections under 34 C.F.R. 685.206 ( e ), which provide relief for misrepresentation and servicing misconduct Public Service Loan Forgiveness regulations under 34 C.F.R. 685.219 The Consumer Financial Protection Act 's prohibition of unfair, deceptive, or abusive acts or practices ( UDAAP ) under 12 U.S.C. 5531 and 5536 The Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692, due to unauthorized servicing transfers and misleading communications I respectfully request the following remedies : 1. A full discharge of the remaining balance on my federal student loans serviced by MOHELA 2. A comprehensive review and reconsideration of all payments made during my public service employment from XX/XX/XXXX to XX/XX/XXXX and beyond.

3. Immediate cessation of any collection activity related to these loans 4. Restitution for any financial harm resulting from misrepresentation and unauthorized servicing transfers I have submitted employment verification forms from all employers to Mohela which will show that I have more than enough in years and payments. I urge both the Consumer Financial Protection Bureau ( CFPB ) and Department of Education to investigate these violations and take corrective action consistent with federal law to protect borrowers like myself.

Thank you for your attention to this matter. I look forward to your prompt response and hope for a fair resolution.

Company response to consumer: Untimely response