Consumer complaint received 2025-04-14 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA
State: CA

Complaint narrative:
I am filing this complaint against MOHELA for mismanaging my federal student loan ( loan XXXX ), incorrectly classifying it as a Smart Consolidation HEAL Loan and improperly ending my in-school deferment, despite my eligibility under FFELP rules. This error, combined with their disorganized handling, is causing financial stress and potential harm to my loan status. 
Background : I graduated with a XXXX XXXX in XXXX and consolidated multiple federal loansXXXX HEAL loans ( XXXX to XXXX ), XXXX Perkins, XXXX SLS XXXX and XXXX subsidized Stafford loansinto a FFELP Consolidation Loan ( loan XXXX ) in the late XXXX. XXXX lists loan XXXX as FFELP Consolidated, and MOHELAs records show loans XXXX to XXXX as HEAL, {$0.00}, Consolidated and Paid in Full, confirming the late XXXX FFELP consolidation. Ive maintained half-time enrollment ( XXXX credits, cash-paid ) at XXXX XXXX XXXX XXXX ( XXXX XXXX for over XXXX  years, qualifying for in-school deferment under FFELP regulations ( 34 CFR 682.210 ( b ) ( 1 ) ), which require only half-time status with no time limit. 
Issue : MOHELA insists loan XXXX is a Smart Consolidation HEAL Loan requiring full-time enrollment for deferment, a nonexistent loan type not recognized by federal regulations or XXXX. They set its deferment to end in XX/XX/XXXX without the standard FFELP XXXX grace period ( 34 CFR 682.210 ( b ) ( 3 ) ), unlike my other FFELP loans ( XXXX, XXXX ), which are deferred until XX/XX/XXXX with a XXXX grace period for XXXX clearinghouse verification of my half-time status. This misclassification began after XXXX transferred my loans to MOHELA in XXXX, likely a data error from the transition. 
Actions Taken : XX/XX/XXXX : I emailed MOHELA, stating loan XXXX is FFELP Consolidated, not HEAL, citing studentaid.gov and their own XXXX {$0.00} HEAL records. I noted XXXX years of half-time deferment by XXXX XXXX ( XXXX XXXX ) and Navient ( XXXX ) and that loans XXXX and XXXX are half-time deferred. I requested correction and warned of Ombudsman escalation. 
XX/XX/XXXX : XXXX claimed # XXXX smart HEAL, promised a letter to clear things up after escalation. 
XX/XX/XXXX : Received a notice ( researching reply if appropriate ). Calledanother representative said # XXXX, # XXXX stay deferred ( XXXX a grace period ), but # XXXX ends XXXX ( HEAL, no grace ). She admitted # XXXX might be FFELP, apologized, but said Id need to call back for deferment if corrected. She noted NSLDS shows a XXXX graduation date and suggested a Summer XXXX class ( not my normFalls enough ) to secure deferment by XXXX. Theyre waiting a reply from a registry email ( escalation or NSLDS ). 
XX/XX/XXXX Email : MOHELA responded, reiterating # XXXX a Smart HEAL Loan needing full-time enrollmentincorrect. I replied, restating # XXXX FFELP Consolidated status, studentaid.gov, XXXX {$0.00} HEALs, XXXX years half-time, and demanded correction or Ombudsman action. Got an auto-reply ( high email volume respond soon ). 
Harm Caused : MOHELAs errormisclassifying # XXXX and ending deferment prematurelythreatens financial strain, as I rely on half-time deferment ( LAVC, XXXX credits, cash-paid ) to manage payments. Their disorganized responses ( waiting registry email, vague notice, auto-reply ) and inconsistent process ( unlike XXXX XXXX/XXXX  seamless deferments ) cause stress and uncertainty. Loans XXXX, XXXX correct half-time treatment proves # XXXX should matchMOHELAs glitch is unjustified. 
Requested Resolution : 1. Correct loan XXXX status to FFELP Consolidated, as per studentaid.gov and MOHELAs XXXX records. 
2. Reinstate in-school deferment for half-time enrollment ( XXXX credits, LAVC, Spring/Summer XXXX ), matching loans XXXX, XXXX, with FFELPs XXXX grace period. 
XXXX. Provide written confirmation of the correction and deferment. 
XXXX. XXXX MOHELAs handlingdisorganization ( XXXX Navient transfer errors, smart HEAL mislabel, delayed responses ) harms borrowers. 
MOHELAs failure to resolve despite my clear evidencestudentaid.gov, XXXX {$0.00} HEALs, XXXX years half-timewarrants CFPB intervention. XXXX prepared to enroll in XXXX XXXX ( half-time, cash-paid ) to ensure XXXX verification, but # XXXX misclassification must be fixed now to align with FFELP rules and my other loans.

Company response to consumer: Closed with explanation