Consumer complaint received 2026-06-24 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: IN

Complaint narrative:
* \ * Dispute Summary Federal Student Loans\ * \ * 1\. \ * \ * Missing Master Promissory Note ( XXXX loans ) \ * \ * MOHELA and XXXX have no Master Promissory Note on file for the loans taken out in XXXX. 2\. \ * \ * Unsigned & Fraudulent XXXX Master Promissory Note\ * \ * The XXXX XXXX on file contains no signature from me and lists an address I have not lived at since XXXX. 3\. \ * \ * Missing XXXX Consolidation Paperwork\ * \ * There is no record or signed documentation of the XXXX consolidation on file. 4\. \ * \ * XXXX XXXX Tuition Assistance ( XXXX ) \ * \ * I was active in the XXXX XXXX when these loans were taken out. The school failed to certify my military status, which should have provided 100 % tuition assistance. 5\. \ * \ * XXXX XXXX Misrepresentation\ * \ * XXXX XXXX told me graduates were guaranteed a job as a massage therapist, but provided no employment assistance. 6\. \ * \ * Attempted Forced Move to Standard Repayment\ * \ * MOHELA attempted to remove me from the Income-Based Repayment plan and force me into the standard 10-year repayment plan. This would have added three additional years to my repayment term and nearly \ {$40000.00} in extra interest. 7\. \ * \ * Illegal IBR Payment Amount\ * \ * My current IBR payment of \ * \ * \ {$660.00} per month\ * \ * violates federal IBR rules . The maximum allowable payment under IBR can not exceed the standard 10-year repayment amount, which is \ * \ * \ {$410.00} per month\ * \ *. 8\. \ * \ * Excessive Fees and Interest Over 30 Years\ * \ * The loan balance has grown excessively due to decades of improper late fees, collection costs, and capitalized interest added during periods of deferment and forbearance. 9\. Improper Interest Accrual During Administrative Forbearance On, MOHELA placed my loans into administrative forbearance due to their own investigation. Despite this, they have continued to charge interest and increase my loan balance. It is unreasonable and bad faith for MOHELA to place my account into forbearance for the purpose of conducting their investigation, while simultaneously allowing interest to accrue and further damage my balance during that same period. 10\. Deliberate Attempt to Sabotage Forgiveness Path MOHELA knowingly assigned me an illegal IBR monthly payment of \ $ XXXX {$660.00}, in direct violation of federal regulations that clearly state an IBR payment can not exceed the Standard 10-year repayment amount ( 34 CFR 685.209 ). The Standard repayment amount is \ {$410.00} per month. When I questioned this illegal amount and asked what would happen if I could not afford the \ {$660.00} payment, the MOHELA representative attempted to steer me into switching to the Standard Repayment Plan. When I continued to push back and ask questions, the representative hung up on me. This appears to have been a deliberate attempt to force me off the IBR plan, destroy my remaining 108 payments toward forgiveness, and add approximately \ {$49000.00} in additional interest to my loan balance. 34 CFR 685.209 This covers Direct Loans ( the most common now ). This is the main one that applies to the vast majority of borrowers on the current IBR plan. 34 CFR 682.215 This covers FFEL loans ( Federal Family Education Loan Program ). This is the older regulation. Thanks for your attention to this matter XXXX XXXX XXXX There are already complaints in my file related to this issue. There is currently an ongoing investigation for some items but not all

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