Consumer complaint received 2026-04-22 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with forgiveness, cancellation, or discharge
Company: MOHELA
State: CA

Complaint narrative:
This is a follow-up to CFPB complaint XXXX. A student loan servicer ( MOHELA ) currently services a XXXX-owned FFELP Consolidation loan disbursed XX/XX/XXXX. The prior CFPB response stated the ED one-time IDR account adjustment is no longer available for XXXX-owned FFELP loans unless the borrower re-consolidated into the Direct Loan Program by XX/XX/XXXX. I understand that position. This follow-up complaint is about servicing conduct, missing documentation, and a required accounting. What happened / timeline and amounts : The servicer provided a status and repayment plan history showing repeated periods of deferment and forbearance over many years, including extended voluntary forbearance periods ( XXXX ; XXXX ; XXXX ) and multiple Economic Hardship Deferment periods ( including XXXX ; XXXX ; XXXX ; XXXX ). The servicers payment history/ledger shows repeated capitalization of interest associated with forbearance periods and quarterly capitalization entries, increasing the balance over time. For example, the ledger shows numerous Capitalized InterestForbearance entries and a large capitalization event on XX/XX/XXXX of {$2000.00} labeled as capitalized interest at forbearance end, which increased the principal balance. The servicer also states it received proof of income documentation in XX/XX/XXXX but did not receive an accompanying IBR application, and it referenced correspondence dated XX/XX/XXXX stating additional information was needed. Actions taken by me : I requested a complete month-by-month accounting, repayment plan history, and explanation for why extended forbearances were used during hardship instead of effective assistance into the most favorable affordable plan available. I am requesting the servicer provide the servicing notes/call logs and reason/type codes for each forbearance placement/extension, and a written IBR qualifying-month calculation. The servicers XX/XX/XXXX correspondence states that Economic Hardship Deferment periods are counted toward IBR forgiveness, and the status history shows multiple Economic Hardship Deferment periods. Resolution requested : Provide servicing notes/call logs and reason/type codes for each forbearance/deferment ; clarify whether each forbearance was borrower-requested or servicer-applied. Provide a written IBR qualifying-month calculation and confirm treatment of Economic Hardship Deferment months. Provide documentation of how the XX/XX/XXXX income submission was logged/processed and what assistance was offered to complete the IBR application . Provide appropriate corrective remediation for harm caused by repeated/extended forbearance use and capitalization where permitted, and documented assistance to enroll in the most favorable affordable plan available, with a written projected forgiveness date under that plan. ( Attachments : payment/capitalization history ; status/repayment plan history ; XX/XX/XXXX correspondence. )

Company response to consumer: Closed with explanation