Consumer complaint received 2026-03-04 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA
State: FL

Complaint narrative:
I am submitting this complaint regarding a servicing data integrity failure related to my Public Service Loan Forgiveness ( PSLF ) payment history. From XX/XX/XXXX through XX/XX/XXXX, my federal student loans were incorrectly placed into an in-school deferment, despite my being employed full-time in qualifying public service and otherwise eligible to be in repayment. This deferment was applied in error. While my loans were serviced by XXXX XXXX, this issue was reviewed and corrected. XXXX approved the removal of the in-school deferment for this period and restored those months to repayment status for PSLF purposes. However, when my loans were later transferred from XXXX to MOHELA, this previously approved correction was lost, reversed, or ignored. The months from XX/XX/XXXX through XX/XX/XXXX are no longer reflected as qualifying or eligible months toward PSLF, despite having already been reviewed and corrected by the prior servicer. As a result, these months are not counting toward PSLF on XXXX. I was denied PSLF buyback eligibility for Not Enough Months ''. MOHELA and FSA now claim the months are ineligible due to in-school deferment, without addressing the fact that this deferment was previously removed and corrected. Responses I have received rely on generic PSLF policy explanations and do not address the account-specific servicing history or explain why a servicer-approved correction is no longer being honored. This is not a dispute over PSLF rules. It is a records and servicing failure during servicer transfer.This is a problem because a federal loan servicer ( XXXX ) approved a correction that materially affects my PSLF eligibility. That correction was lost during a servicer transfer, through no fault of mine. MOHELA and FSA have failed to reconcile their records with the prior approved determination. I have no procedural mechanism to appeal or follow up on the denial meaningfully. I have suffered ongoing financial and administrative harm, including delayed forgiveness and repeated erroneous denials. Borrowers should not lose qualifying PSLF credit due to servicer transitions or internal data failures.This issue has been raised repeatedly through : Multiple FSA Feedback Center cases, PSLF reconsideration and buyback requests, Congressional inquiries, MOHELA Ombudsman review, Department of Education OIG referral to FSA. Despite extensive documentation, the underlying servicing error remains unresolved. I am submitting this update to my existing complaint regarding MOHELAs failure to properly reflect a previously approved deferment removal ( XXXX XXXX XXXX ). On XX/XX/XXXX, MOHELAs Ombudsman Team acknowledged that : The XXXX approval documentation is in the file ; The matter is being worked internally ; and Updated information would be transmitted to NSLDS once corrected. Despite this acknowledgment, no update has occurred, and the incorrect deferment coding continues to impact my PSLF count and prior PSLF buyback denial. This demonstrates an ongoing servicing data integrity failure and prolonged delay in correcting acknowledged account inaccuracies. I request confirmation of : What specific steps MOHELA has taken to update the record ; Why the correction has not yet been transmitted to NSLDS ; and A definitive timeline for resolution.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation