Consumer complaint received 2025-09-17 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: MOHELA
State: UT

Complaint narrative:
I have two complaints. 


First, Mohela mismanaged my repayment plan application. I submitted an application for the PAYE plan in XX/XX/XXXX. I sent a message to them in XX/XX/XXXX enquiring about the status of the application, and heard back in XX/XX/XXXX that o further action is required and that you will be notified when your application has been processed... ( Documents attached ). I believe I called them a few months after this and got a similar response over the phone, but didnt document this conversation. 

Upon revisiting the status of my student loans this month, I learned that my application was never processed, nor was I ever sent any sort of notification or updates on the application. I have spent hours upon hours speaking with Mohela, and though initially they blamed me for my application not being processed, they have ultimately admitted that it was a system error. They state that application processing was held up through the end of XXXX due to federal directives, and that subsequently my application was mistakenly not processed. They state that I need to submit a new application since the one from XX/XX/XXXX is over 6 months old. 

The key issue is that my income has increased, and I am only eligible for the PAYE plan using my XXXX tax returns, which I can not use if I resubmit an application. This means that I am unable to apply payments toward PSLF. If I am unable to qualify for PSLF, this will result in a massive financial burden for me. 

Mohelas resolutions team submitted a message to see if my XX/XX/XXXX PAYE application can be processed with my XXXX tax returns. I havent heard back. 


Second, Mohela provides the all-time worst customer service of any agency, organization, or company I have ever interfaced with. Their hotline seems designed to waste hours upon hours of their clients time, and there doesnt seem to be anyone in the company actually able to effect any actions. 

Their phone tree is mind-numbing and painful to deal with. After multiple minutes of an automatic recording, and multiple warnings of lengthy wait times, clients are automatically transferred to another automated recording ( it actually gives you a wait time to get to the second automated recording ) where the actual phone tree begins. It is exceptionally difficult to get a hold of a human. Clicking XXXX does not work. I had to research on the internet the correct buttons to push to get to a representative. There are three tiers of employees Ive interfaced with, standard representative, the advanced team, and the resolutions team. I have waited on hold for hours on end before calls drop. They refuse to provide callbacks, citing that their policy is to move to the next caller in the queue rather than resuming services where a call was dropped. The resolutions team is only accessible through the advanced team. And the only option provided to communicate with the resolutions team is by callback ( the automated message asks for consent to be called back in the next two business days, and then automatically disconnects the call ). If one misses the call from the resolutions team, the whole process needs to be restarted from scratch. As above, I have also tried messaging Mohela, which is equally ineffective. 


Essentially, I was forced to work with Mohela for my student loans. Because of their gross negligence and systemic incompetence, my overall financial plan is off course, and my future eligibility for PSLF is very uncertain. Rather than acknowledge their mistake and provide a resolution, they initially tried to blame me for it, and when that didnt work they insist that I just give up on getting my initial XX/XX/XXXX application processed. They seem incentivized to push clients into a corner of hopelessness and force us to accept a worse off financial future. Mohela should not be allowed to handle student loans. 

XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX On a day to day basis, I help patients navigate decisions where their life and wellbeing is at stake. I believe that I have earned the right to PSLF through my hard work and sacrifices, and refuse to allow Mohela to continue to impact my financial wellbeing as it has. 


Note : Attached you will find key correspondences with Mohela taken from the Mohela message center, and my PAYE application from XX/XX/XXXX. I have also recorded all my recent phone calls with Mohela because my trust and confidence in them is so low.

Company response to consumer: Closed with explanation