Consumer complaint received 2025-03-17 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: GA

Complaint narrative:
Subject : Formal Complaint Against MOHELA for Failure to Inform, Deceptive Practices, and Denial of IDR Adjustment Eligibility Complaint Details : I am filing a formal complaint against MOHELA ( formerly Navient ) for failing to inform me of my eligibility for the XXXX XXXX XXXX XXXX  ) adjustment, misleading me about my repayment options, refusing to release call transcripts that would prove their negligence, and providing false information regarding my loan status. 

I have been in repayment for 21 years ( since XX/XX/XXXX ), and my original loan balance was {$22000.00}. Despite making payments for two decades, my current balance remains {$21000.00}. Had I been properly advised, I would have consolidated my loan under the IDR adjustment and received appropriate credit toward loan forgiveness. 
MOHELA and XXXX have engaged in deceptive and obstructive practices, resulting in financial harm. 

XXXX. MOHELA & XXXX Failed to Inform Me of My XXXX  Adjustment Eligibility On XX/XX/XXXX, MOHELA sent an email with the subject " You May Be Eligible for XXXX. '' However, this email was exclusively about XXXX and did not inform me of my eligibility to consolidate for the XXXX adjustment. 
On XX/XX/XXXX, I called XXXX ( then my servicer ) in response to this email, seeking clarification on my repayment options. 
During this call, XXXX never informed me that I needed to consolidate my loan to receive XXXX credit. Instead, they mislead and confused me by discussing XXXX. 
Because of their failure to inform me, I missed the deadline to consolidate my loan for the XXXX adjustment. 

XXXX. MOHELA Has Refused to Provide Proof In their XX/XX/XXXX letter, MOHELA falsely claimed that they had notified me of the XXXX adjustment in two emails : o XX/XX/XXXX o XX/XX/XXXX However, both of these emails were about XXXX, NOT XXXX, and never stated that I needed to consolidate my loan to receive XXXX credit. 
I requested that MOHELA provide proof that I was explicitly informed of my eligibility for XXXX consolidation before the deadline, and they have refused to provide any such proof. 
When I pressed for answers, MOHELA closed my case and refused further assistance. 

XXXX. MOHELA Refuses to Release Call Transcripts That Prove Their Negligence On XX/XX/XXXX, I contacted MOHELA to inquire about my loan forgiveness timeline and interest accrual. 
The representative provided false information, claiming my monthly interest accrual was {$25.00} when, in reality, my actual interest accrual is {$70.00}. 
I requested transcripts of my calls with MOHELA, including the XX/XX/XXXX, call that would prove I was never informed about XXXX consolidation. 
MOHELA refuses to release these transcripts, raising concerns about what they are trying to conceal. 

XXXX. MOHELA & XXXX Failed to Advise Me to Stay on XXXX for Loan Forgiveness I have been in repayment for 21 years, yet at no point did any servicer advise me that staying on an XXXX plan would lead to loan forgiveness. 
Instead, I was repeatedly led to be confused with different repayment plans that clearly was not in my best interest and accumulated interest rather than leading to forgiveness. 
This is a systemic failure, loan servicers should be required to proactively inform borrowers when they clearly qualify for loan forgiveness pathways. 
My income levels have consistently been low ( see breakdown below ), meaning I should have been kept on IDR repayment for the past two decades, but no one ever advised me to do so. With my repeated inability to make the large payments each month, XXXX should have advised me to choose XXXX, but instead confused me with forbearance and graduate plans. 

Income Breakdown ( From Social Security Earnings Record ) XXXX : {$100.00} XXXX : {$10000.00} XXXX : {$3400.00} XXXX : {$3600.00} XXXX : {$12000.00} XXXX : {$13000.00} XXXX : {$16000.00} XXXX : {$14000.00} XXXX : {$11000.00} XXXX : {$12000.00} XXXX : {$13000.00} XXXX : {$15000.00} XXXX : {$24000.00} XXXX : {$17000.00} XXXX : {$20000.00} XXXX : {$24000.00} XXXX : {$23000.00} Despite my low-income history, no servicer ever informed me that : XXXX. XXXX  repayment leads to loan forgiveness after 25 years. 
XXXX. I was already qualifying for forgiveness credits. 
XXXX. Switching repayment plans was adding unnecessary interest instead of leading to forgiveness. 

This is a failure of the loan servicing system, someone should have advocated for me instead of letting my balance remain nearly the same after two decades. 

XXXX. MOHELA & XXXX Failure Has Caused Financial Harm Their failure to inform me of my IDR consolidation eligibility has delayed my loan forgiveness by years. 
Their false and misleading emails caused me to miss the IDR consolidation deadline. 
Their refusal to release my call transcripts suggests an intentional cover-up of their failure to properly advise borrowers. 
Their misinformation about my interest accrual could have led me to make incorrect financial decisions. 

Requested Action I am formally requesting the following : 1. A Full Investigation Into the Handling of My Loan Why was I never informed about my XXXX  consolidation eligibility? 
Why was I given misleading information that caused me to miss the deadline? 
Why does MOHELA refuse to release call transcripts that would confirm their failure to properly advise me or emails that clearly advised me to consolidate my loan for IDR adjustment? 

XXXX. A Review of My Loan & Proper XXXX XXXX Application Given my 21 years in repayment, I am requesting a full review of my loan for appropriate XXXX forgiveness credits. 

XXXX. The Immediate Release of My Call Transcripts I formally request all call transcripts from XX/XX/XXXX, and XX/XX/XXXX, as these calls would prove that I was never properly advised about XXXX consolidation. 

XXXX. A Review of Why I Was Never Advised to Stay on XXXX for Forgiveness Why was I never informed that XXXX would eventually lead to forgiveness? 
Why was I placed on repayment plans that accumulated interest rather than leading to forgiveness? 

MOHELA must take full responsibility for these deceptive practices and immediately rectify their failure to inform borrowers of their IDR consolidation eligibility. I expect a clear, documented response addressing why I was never properly advised, why my call transcripts are being withheld, and what corrective action will be taken to ensure I receive the XXXX credit I was entitled to. This issue extends far beyond my case, borrowers nationwide have suffered financial harm due to MOHELAs ( XXXXXXXX XXXX ) negligence, and I will not allow this to be dismissed or ignored. 

Thank you for your time and attention to this matter. 

XXXX XXXX

Company response to consumer: Closed with explanation