Consumer complaint received 2026-03-11 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: NM

Complaint narrative:
I am filing this complaint regarding an unresolved issue with the processing of my Teacher Loan Forgiveness ( TLF ). 1. Background and Eligibility I am a highly qualified Special Education teacher and completed the required XXXX consecutive years of qualifying service in XX/XX/XXXX, making me eligible for up to {$17000.00} in forgiveness under the federal Teacher Loan Forgiveness program. I submitted my Teacher Loan Forgiveness application in XX/XX/XXXX. XXXX. Approval of Teacher Loan Forgiveness On XX/XX/XXXX, I received an approval letter from XXXX confirming that my Teacher Loan Forgiveness application had been approved. Around XX/XX/XXXX, {$9000.00} of my student loan balance was forgiven and applied to my account. However, the remaining portion of my approved forgiveness ( approximately {$8000.00} ) was never applied to my loans serviced by MOHELA, even though the approval letter confirmed eligibility for the full forgiveness amount. XXXX. Attempts to Resolve the Issue Since XX/XX/XXXX, I have repeatedly contacted MOHELA to resolve the missing forgiveness amount. My issue has been escalated internally through MOHELA at least twice, but the supervisors I spoke with were unable to provide any meaningful updates or resolution. Instead, I have received multiple contradictory explanations regarding the status of my Teacher Loan Forgiveness : In XX/XX/XXXX, I was told that my Teacher Loan Forgiveness application had been lost during MOHELAs servicing platform transition in XX/XX/XXXX and that I would need to reapply for Teacher Loan Forgiveness. During this time my loans continued to accrue interest even though my Teacher Loan Forgiveness had already been approved. In XX/XX/XXXX, I was told that the approval letter issued by Federal Student Aid could not be processed because it included two loan servicers and that a new approval letter specifying only MOHELA must be issued before the remaining forgiveness amount can be applied. I was also told that multiple applications may have canceled each other out, which directly contradicts the earlier explanation that my application had been lost. 4. Customer Service Issues In addition to the unresolved forgiveness issue, I have experienced significant problems communicating with MOHELA : Calls to MOHELA frequently require unusually long hold times, often lasting several hours before I am able to speak with a representative. Email and platform messages submitted through the MOHELA system have not received timely responses. Representatives frequently state they can not resolve the issue and transfer the matter to a supervisor. In some cases, after waiting for extended periods, I was only offered the option to receive a call back from a supervisor. My issue was escalated internally, and two supervisors eventually contacted me, but neither was able to provide any new information or resolution. During these conversations I was told that MOHELA could not take further action due to legislation and that I would simply have to wait for Federal Student Aid to send another approval letter. 5. Lack of Transparency Regarding My Account Records When I requested documentation regarding my account activity and servicing history related to this issue, including call history and internal servicing notes, I was informed by a MOHELA representative that the only way to access detailed records of my account, including internal notes and call history, would be through a subpoena. 6. Ongoing Harm This issue has now been ongoing for nearly a year. During this time : The remaining Teacher Loan Forgiveness amount ( approximately {$8000.00} ) has not been applied to my account. My loans have continued to accrue interest while the approved forgiveness amount remains unresolved. XXXX. Requested Resolution Because this issue involves an approved federal loan forgiveness amount that was only partially applied and has remained unresolved despite repeated attempts to resolve the issue directly with the loan servicer, I am requesting : A full review and reconciliation of my account Immediate application of the remaining approved Teacher Loan Forgiveness amount Correction of my loan balance Removal or adjustment of any interest that accrued due to this processing error A written explanation of what happened to the remaining forgiveness amount If MOHELA is unable to resolve this issue directly, I request that this complaint be escalated for review through the Federal Student Aid Ombudsman for a full account investigation.

Company response to consumer: Untimely response