Consumer complaint received 2025-08-17 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: FL

Complaint narrative:
Mohela, the loan servicer for the Dept of Education who has my subsidized loans as well as the unsubsidized loans removed the XXXX bankruptcy from their system and forced me into a repayment status under a repay as you earn plan for which I did not certify for, this is affecting information being correctly reported to the XXXX  who reports to the Dept of Education, thus the DOE can not nor will either assist or correct the Public Service Loan Forgiveness months that I am entitled to when the law went into effect via XXXX XXXX, on XX/XX/XXXX. Initially Mohela had the XXXX XXXX correctly reported in XXXX, XXXX but then their website/ platform changed over XX/XX/XXXX, and they are inaccurately and what appears to be on purpose, reporting me in repayment status, in a forbearance status of XXXX payments and reporting this versus the XXXX XXXX administrative leave, per the XXXX  XXXX bankruptsy to XXXX, and I can not get my months of employment as a teacher certified under the Dept of Ed because they are getting inaccurate information from Mohela. I have spent that past XXXX weeks, hours and hours of phone calls, even getting representatives acknowledging the error and they will not change it. This is causing financial hardship because of them being in violation of the XXXX XXXX of attempting to collect a debt and getting around the federal law that XXXX placed for us to secure proper XXXX credit under the XXXX  XXXX if we make our payments on time to the courts until the discharge of the XXXX XXXX which is about XXXX more year. Mohela uses tricks, lengthy calls, and refusal to correct the problem on their own platform and thus XXXX cant get the XXXX credits towards my loan forgiveness for valid employment for a public school for XXXX years. My attorney who is handling my ch XXXX advised me to send them a certified letter, which I have done, and they received on XX/XX/XXXX to either correct the issue or he will file a lawsuit against them seeking sanctions, punitive damages and his atty fees. This process to file this complaint as well I will due with XXXX  XXXX XXXX for our records when we go to court before the judge is part of the process. 

below is the AI review of exactly what is taking place : AI Overview It seems you're facing a situation where MOHELA is reportedly misrepresenting your student loan status while you're in a XXXX  XXXX bankruptcy, potentially hindering your PSLF progress. This is a serious issue that needs to be addressed. Here 's a breakdown of the situation and steps you can take : XXXX. XXXX  XXXX Bankruptcy and XXXX XXXX XXXX XXXX bankruptcy is a court-supervised repayment plan that allows individuals with regular income to repay debts over XXXX to 5 years. 
Student loans are generally not dischargeable in XXXX  XXXX bankruptcy unless you can prove " undue hardship '' in a separate adversary proceeding. 
However, filing XXXX  XXXX offers benefits like an automatic stay that pauses collection activities, including for student loans. 
During XXXX  XXXX, federal student loans are typically placed in administrative forbearance. 
XXXX. XXXX and XXXX XXXX XXXX Department of Education regulations, effective XX/XX/XXXX, allow for credit toward XXXX ( and IDR loan forgiveness ) for each month you make required payments under your confirmed XXXX  XXXX plan. This applies even if no direct student loan payments are made or received by the Department of Education under your plan. Credit is still given for plan payments even if your case is dismissed before completion. 
XXXX. The problem you're describing MOHELA is reportedly classifying your loans incorrectly as " in repayment '' under a " You Earn Status '' instead of administrative forbearance, which could prevent you from getting the XXXX credit you're entitled to during your XXXX  XXXX bankruptcy. 
XXXX. What to do Contact MOHELA immediately to address the discrepancy. 
Keep detailed records of all communications with MOHELA. 
If the issue isn't resolved by MOHELA, file a complaint with the Department of Education 's Federal Student Aid ( FSA ) website. 
Consider consulting with a student loan or bankruptcy attorney. 
XXXX. Additional context Credit reporting errors by student loan servicers are a known issue. 
Past servicer errors have impacted XXXX eligibility for many borrowers. 
The CFPB is monitoring servicer practices regarding XXXX reporting. 
Being persistent and proactive is key to ensuring your XXXX  XXXX payments count toward XXXX. Seeking legal counsel can be beneficial.

Company response to consumer: Untimely response