Consumer complaint received 2026-01-22 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: DC

Complaint narrative:
Summary of problem : In XX/XX/XXXX, I asked MOHELA to cancel a PAYE recertification request. MOHELA confirmed they would cancel it and that it would take 10 business days to cancel. Nevertheless, an entire year after my request to cancel, MOHELA erroneously processed the recertification in XX/XX/XXXX, thus doubling my monthly payments. MOHELA has all the records on my request to cancel and their assurances that it would be cancelled. They have all of the records admitting they are the ones who erroneously processed it and records on my unsuccessful resolution efforts.

After over 6 weeks of back and forth with MOHELAs resolutions team and loan servicing department, MOHELA admits that they are responsible for their error. Nevertheless, MOHELA say that they can not revert me to my prior repayment plan and terms. I know their conclusion can not be true because I have found first-person accounts online of people who had similar experiences, and they were able to get MOHELA to revert erroneously processed recertifications. It did require
intervention by the FSA Ombudsman to force MOHELA to correct their errors.

Requested resolution : Make MOHELA correct their admitted error and revert me back to my prior PAYE repayment plan, which was not set to expire until XX/XX/XXXX. 


Below is a more detailed accounting of events : In XX/XX/XXXX, I asked my loan servicer MOHELA to cancel my PAYE recertification application because, two days after I submitted it, my recertification deadline was extended by 12 months ( to XX/XX/XXXX ). I followed up with MOHELA a week later to confirm my cancellation request, which they did, and MOHELA told me it would take up to 10 business days for the cancellation to be processed. In XX/XX/XXXX, my recertification deadline was extended again, making my recertification not due until XX/XX/XXXX. 

Against my express request to cancel and MOHELAs own assurances they would cancel, MOHELA nevertheless processed the old XX/XX/XXXX recertification application an entire year later in XX/XX/XXXX. As a result, my monthly payments have more than doubled from {$450.00} per month to {$990.00}.

On the same day MOHELA erroneously processed my recertification request, I contacted MOHELAs resolutions team to have them revert it. On the call, the resolutions team member admitted that they had the records of my cancellation request and that MOHELA erroneously processed the recertification anyway. They also said that it can be reverted because it was MOHELAs error. They quoted me 10 business days to get it fixed. 

I called again 10 business days later because my repayment plan had not been reverted. MOHELAs resolutions team said that they are escalating the matter and that escalation will have it reverted within 10 business days. 

I called a few days later for an update and was told that they cant update me until the 10 business days had passed. At this point, it is XXXX, and I had to make my first payment of the new, twice-as-high monthly payment amount. I called again a few days later because it hadnt been reverted, and the resolutions team member said that they still hadnt fixed it within the additional 10 business days so she personally emailed the loan servicing department to have it fixed. She told me to call back in 3 to 5 business days. 

I called back a few business days later and the resolutions team member told me that loan servicing had responded to the email, stating that they can not revert me to my prior repayment terms. This is the same loan servicing department that said they would cancel my recertification request but nevertheless processed it a whole year later, against my express request and their own assurances to cancel.

The resolutions team suggested I contact the FSA Ombudsman office to escalate the issue.

Below is a timeline of events provided to me by the MOHELA resolutions team, based on MOHELAs records : XX/XX/XXXX : MOHELA messaged to inform me that my PAYE recertification is due soon. 

XX/XX/XXXX : Submitted PAYE recertification application. 

XX/XX/XXXX : MOHELA messaged to inform me that my recertification deadline had been extended to XXXX XXXX, XXXX. 

XX/XX/XXXX : I called MOHELA and asked to cancel my XX/XX/XXXX recertification request. MOHELA said they would cancel it. 

XX/XX/XXXX : I called MOHELA to confirm my cancellation request. They confirmed it, and quoted me 10 business days for it to be cancelled. 

XX/XX/XXXX : MOHELA messaged to inform me that my recertification deadline had been extended to XXXX XXXX, XXXX. 

XX/XX/XXXX : MOHELA erroneously processed my XX/XX/XXXX recertification request that I had asked to cancel. 

XX/XX/XXXX : I called MOHELA to ask that they revert me to my prior repayment plan and terms. The resolutions team supervisor reviewed the records, noted my two requests to cancel the XX/XX/XXXX recertification, admitted that loan servicing department erroneously processed it, and quoted me 10 business days to revert back to my prior repayment plan and terms. 

XX/XX/XXXX : I called MOHELA for an update because my repayment plan had not yet been updated. The resolutions team supervisor said that it has to be elevated for expedited processing. They quoted me another 10 business days to revert me after elevation. 

XX/XX/XXXX : I called MOHELA for an update. The resolutions team supervisor said it was still within the 10-business day period post-elevation, so they had no update. 

XX/XX/XXXX : I called MOHELA for an update. The resolutions team supervisor said it was still not fixed, so they emailed the loan servicing department directly to revert me to my prior repayment plan and terms. 

XX/XX/XXXX : I called MOHELA for an update. The resolutions team supervisor said that the loan servicing department responded and said, though they erroneously processed the recertification, they can not revert me to my prior repayment plan and terms.

T

he resolutions team supervisor suggested I contact the FSA Ombudsmen office. The resolutions team supervisor submitted a request for a manager in the resolutions department to call me, saying it could take a few business days to receive a manager callback. To date, I never received a manager callback. I also requested that MOHELA send me an electronic letter to my MOHELA electronic inbox, detailing the loan servicing departments justification for why they can not revert me. The resolutions team member said they can do that and that they submitted that request. To date, I have not received any electronic letter
detailing the loan servicing departments conclusion and justification. 

XX/XX/XXXX : I called MOHELA to speak to a resolutions team manager ( higher up than the supervisors I had been speaking to in the previous calls ). The manager informed me that the loan servicing department has decided to not revert me back to my old repayment plan, and suggested I contact the FSA Ombudsmen office.

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