Consumer complaint received 2025-03-20 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: CO

Complaint narrative:
I am filing this formal complaint against MOHELA, my federal student loan servicer, for mismanagement of my loan, failure to process my PSLF application, and refusal to place my loans into the required forbearance period as per federal law. Their negligence and lack of proper customer service have led to financial hardship and unnecessary stress. 

1. Failure to Process My Public Service Loan Forgiveness ( PSLF ) Application I applied for PSLF forgiveness under the special Biden administration adjustment, which reduced the required service time from 10 years to 5 years for eligible borrowers. Based on this, my loans should have been forgiven in 2023. However : MOHELA has failed to process my application despite my eligibility. 
They have not provided clear communication about the status of my PSLF application. 
My loan remains active with a balance I do not owe. 
They have continued to charge me despite my PSLF eligibility. 
I have provided all necessary documentation proving my eligibility and have contacted MOHELA multiple times, yet they have failed to take any corrective action. 

2. Failure to Place My Loans in Forbearance as Required by Law According to current federal policies, including the halt on IDR plan applications and the pause on the SAVE plan, my loans should have been placed in forbearance automatically. However : MOHELA continues to demand payments that I should not be required to make. 
I have past-due balances that should not exist due to the mandated forbearance period. 
They refuse to acknowledge or correct this issue despite multiple attempts to escalate my complaint. 
This violates federal guidance and creates unnecessary financial burden. 

3. Severe Customer Service and Website Issues MOHELA is extremely difficult to reach, making it nearly impossible to resolve loan issues : Customer service hold times exceed one hour, often leading to dropped calls. 
Their automated system prevents reaching a live agent. 
Representatives provide inconsistent and inaccurate information. 
Their website frequently malfunctions, preventing me from managing my loan properly. 
As a borrower, I have a right to timely, accurate, and transparent loan servicing, which MOHELA is failing to provide. 

Request for Immediate CFPB Action I request that the Consumer Financial Protection Bureau investigate MOHELA 's ongoing mismanagement and demand the following corrective actions : Immediate processing of my PSLF forgiveness application and removal of my loan balance per federal guidelines. 
Immediate placement of my loans into forbearance, including retroactive correction of past-due amounts. 
Enforcement of proper servicing standards, ensuring MOHELA provides adequate customer support and a functional website. 
Oversight and penalties against MOHELA for failing to follow federal student loan regulations. 
MOHELAs mismanagement directly impacts thousands of borrowers. I urge the CFPB to hold them accountable and ensure they comply with federal law.

Company response to consumer: Closed with explanation