Consumer complaint received 2025-08-29 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: MOHELA
State: CA

Complaint narrative:
To Whom It May Concern, I am writing to formally petition for urgent action and oversight regarding the Missouri Higher Education Loan Authority ( MOHELA ) and its handling of federal student loans. Mounting evidence demonstrates that MOHELA has consistently failed in its responsibilities as a federal loan servicer, causing widespread harm to borrowers nationwide. 

Widespread Servicing Failures A report released in early XXXX, The MOHELA Papers, revealed that XXXX out of XXXX MOHELA borrowers experienced a servicing failure after repayment resumed. This alarming statistic underscores systemic deficiencies in the organizations operations, leaving millions of borrowers vulnerable to errors that jeopardize their financial stability. 

Customer Service Failures Borrowers and government officials alike have documented severe customer service breakdowns. Reports include excessively long call wait times, poorly trained representatives, and deliberate call deflection tactics designed to prevent borrowers from reaching live agents. Such practices not only violate borrower trust but also obstruct individuals from accessing critical information about their loans and repayment options. 

Mismanagement of Repayment and Forgiveness Programs MOHELA has been repeatedly accused of mismanaging both Income-Driven Repayment ( IDR ) and Public Service Loan Forgiveness ( PSLF ) programs. Errors in processing, miscalculations of qualifying payments, and delays in forgiveness determinations have denied borrowers the relief guaranteed to them under federal law. These failures create unjust financial burdens and undermine public confidence in federal loan servicing. 

Unlawful and Deceptive Practices In XXXX, the XXXX XXXX XXXX XXXX ( AFT ) filed a lawsuit alleging MOHELA engaged in unlawful practices, including overcharging borrowers and providing misleading information. More recently, in XX/XX/XXXX, a separate investigation was launched into MOHELAs website Terms of Use, which appear to unlawfully strip borrowers of their rights by forcing them to waive critical legal protections. These actions may constitute clear violations of federal consumer protection laws. 

Call to Action Given the breadth and severity of these failures, I respectfully request that : 1. Federal oversight bodies launch a full, independent investigation into MOHELAs practices.

2. Immediate corrective action be taken to safeguard borrowers rights, including enforcement actions and penalties where appropriate.

3. Alternative servicing arrangements be considered to ensure that borrowers receive competent, lawful, and transparent loan servicing.

4. Borrowers wronged by MOHELAs practices receive restitution and proper credit toward repayment and forgiveness programs.

Federal student loan borrowers deserve accountability, transparency, and fair treatment. MOHELAs ongoing failures have caused significant financial and emotional harm, and decisive oversight action is necessary to restore trust in the federal student loan system. 

Thank you for your urgent attention to this matter. 

Sincerely, XXXX XXXX

Company response to consumer: Untimely response