Consumer complaint received 2025-06-29 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: TX

Complaint narrative:
XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX, Tx XXXX XXXX XXXX XXXX Consumer Financial Protection Bureau XXXX. XXXX XXXX Washington , DC XXXX Subject : Formal Complaint Against MOHELA for Mismanagement, Deceptive Practices, and Failure to Administer Federal Student Loan Programs To Whom It May Concern, I am submitting this formal complaint to report egregious misconduct by the Missouri Higher Education Loan Authority ( MOHELA ), a federal student loan servicer contracted by the U.S. Department of Education. MOHELA 's documented mismanagement, deceptive communication, and failure to implement borrower protections have directly impacted my rights and financial stability. 

Summary of Complaint : MOHELA is currently under investigation by the Department of Education and multiple state attorneys general due to widespread allegations of abuse and failure to comply with federal loan servicing standards. These include : Public Service Loan Forgiveness ( PSLF ) Mismanagement : MOHELA has allowed a significant backlog of PSLF forms, issued improper denials, and failed to timely process applications, jeopardizing the loan forgiveness process for qualified borrowers like myself.

Failure to Implement Discharges : Despite being ordered by the U.S. Department of Education to discharge student loans for borrowers defrauded by predatory institutions, MOHELA has failed to carry out these discharges, prolonging unjust financial burdens.

Illegal and Deceptive Practices : Borrowers have been overcharged, provided with false or misleading account information, and denied access to clear resolution pathways. I personally have experienced [ briefly describe your experiencee.g., delayed PSLF processing, inaccurate billing, unhelpful customer service, lost paperwork ].

Call Deflection Scheme : MOHELA has made it nearly impossible to speak to live agents, employing tactics to prevent borrowers from accessing real-time assistance.

Questionable Website Terms of Service : Reports show MOHELA updated its website terms in a way that may force borrowers to unknowingly waive important rights, which raises serious concerns about transparency and fairness.

Supporting Context : MOHELA is named in the following high-profile lawsuits, confirming the pattern of systemic abuse : AFT v. MOHELA Alleging widespread failures in PSLF and account mismanagement. 

Maldonado v. MOHELA Accusing the servicer of failing to comply with discharge orders, with the court denying MOHELAs attempt to dismiss the case.

Impact on Me : As a borrower, I have suffered from [ list specific issues youve facedmissed forgiveness, incorrect balances, denied relief, financial hardship ]. These failures have caused emotional distress, disrupted my financial planning, and placed an undue burden on me despite my compliance with all borrower requirements. 

Request for Action : I am requesting the CFPB : Investigate MOHELA 's conduct in my specific case and in its broader role as a federal loan servicer. 

Hold MOHELA accountable for deceptive, negligent, and abusive practices. 

Ensure correction of errors in my account and restoration of any lost financial benefits, such as PSLF credit or eligible loan forgiveness.

Implement stronger oversight to prevent further borrower harm. 

I am prepared to submit documentation to support this complaint and will respond promptly to any request for follow-up information. 

Thank you for your time and attention to this matter. 

Sincerely, XXXX XXXX

Company response to consumer: Untimely response