Consumer complaint received 2025-03-16 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: NC

Complaint narrative:
My FAFSA record correctly reflects my graduation date and that I am no longer enrolled in school. However, Mohelas records remain incorrect despite FAFSAs database reflecting my graduation. 
Summary of Issue & Timeline : XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, as confirmed by the XXXX XXXX XXXX XXXX XXXX ( XXXX ) and official XXXX XXXX XXXX. 
XX/XX/XXXX Mohela notified borrowers of a loan servicing platform transition, which took effect on XX/XX/XXXX, potentially delaying account updates. 
XX/XX/XXXX I received confirmation that my loan account had been transitioned to Mohelas new servicing platform. 
XX/XX/XXXX My financial advisor, XXXX XXXX, XXXX, XXXX, XXXX, reviewed my case and confirmed that Mohelas failure to update my loan status was " extremely irritating and unique '', as this type of error is not common. 
XX/XX/XXXX I contacted Mohela ( total time : 1 hour ) regarding my incorrect " In-School '' status. I was told the issue would be corrected, and that it may take up to a month. 
XX/XX/XXXX I contacted Mohela again ( total time : 3 hours ) and was assured my status update was being processed. I also uploaded my graduation certification document to Mohela at that time. 
XX/XX/XXXX Instead of correcting my account status, Mohela sent me an In-School Deferment Request Form. This was not only unhelpful but actively worked against my attempts to get my account into repayment status. 
XX/XX/XXXX I contacted Mohela for a third time ( total time : 4 hours ), after waiting over a month with no resolution. I was again told that my status correction was in progress. 
XX/XX/XXXX My account still incorrectly reflects an " In-School '' status. I emailed both Mohela and the XXXX XXXX  office seeking verification that my graduation was reported. I re-uploaded my graduation certification document to Mohela in an attempt to resolve the issue. 
XX/XX/XXXX - MOHELA did not correctly update my loan status ( attached ). As of now : Half of my loans are marked in-school, even though I have graduated. 
The other half are marked active, and accruing interest. These were marked as active 10 months after my graduation date, which meant I could not enroll in a plan for those 10 months. This inconsistent classification of my loans has led to multiple issues : XX/XX/XXXX - I called Mohela, was on hold for 4.5 hours, and was not able to speak with anyone about why only half of my loans are now active. 


This inconsistent classification of my loans has led to multiple issues : - Unnecessary interest accrual while part of my loans are inaccurately classified. 

- I am ineligible to enroll in an Income-Driven Repayment ( IDR ) plan because the XXXX  administration had blocked new IDR applications when my loans were released. 

- Loss of access to my full post-graduation grace period. 

- Emotional stress, time spent on hold with Mohela, and administrative burden from repeated attempts to resolve the issue.

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