Consumer complaint received 2025-01-23 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: PA

Complaint narrative:
I attended the College of XXXX XXXX from XXXX XXXX XXXX I participated in the school with the notion I would be going back for a XXXX XXXX XXXX XXXX in School Administration. As I was nearing the XXXX last courses to graduate with the XXXX XXXX XXXX The college decided to close down. Although a Teach Out plan was offered the XXXX XXXX XXXX in XXXX XXXX was not provided. The school gave us a certificate and said we could use it instead. When administrators were contacted since many students intended for the XXXX XXXX XXXX option the administrators of the program said there was no recourse because they did not have a licensed agreement with a Teach Out partner to offer the XXXX XXXX XXXX and they could not do anything. I could have attended another school from the onset to gain a XXXX XXXX XXXX in XXXX XXXX. Mohela was sent a XXXX XXXX XXXX form soon after I learned I would not be receiving a XXXX XXXX XXXX. They immediately sent me back a notification letter 5 days later stating I was ineligible as the school was not closed. I made over XXXX calls to them to ensure them that the school had notified all students of their permanent closure. Moehela refused to acknowledge this. In turn, I contacted the United States Department of Education where I spoke with the XXXX who oversees the closure of schools she confirmed that XXXX XXXX was in fact on their list and that Mohela has the same information she does. Mohela continued to deny this. I then filed a complaint with Federal Student Aid to which Mohela then contacted me to state that the the form I sent in originally was not signed. Another complaint was filed against Mohela when they continued to not take action the matter was referred to the FSA Ombudsman office to which Mohela was directed to resolve. This was from XX/XX/year> to XX/XX/year>. I immediately used their portal to sign the form and return it to them. I was told my situation had escalated and I would hear back from someone in 15 days. To date, No one has called me regarding the Borrower 's defense. My last correspondence at the beginning of this month was a customer service representative stating that my borrower 's defense was approved since XX/XX/year> however it was a matter of their accounting department wrapping up the issue and that again the matter would be escalated for resolution. To date, I can not get anyone on the phone and it is now almost 8 months since the issue was generated and Mohela has yet to correspond or to update the issue and my account. I have spent upwards of XXXX hours or more on the phone on hold for more than XXXX hours to speak to someone then for them to send me to another department where the wait time is another XXXX hours. Mohela is the worst company to ever have as a student loan borrower and I believe I am due some form of compensation for their inadequate services to me as a student loan borrower.

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