Consumer complaint received 2025-07-01 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Need information about your loan balance or loan terms
Company: MOHELA
State: TN

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX TN, XXXXLoan Account Number: XXXXTo Whom It May Concern:\nSubject: Formal Complaint and Request for Federal Student Loan Discharge Due to MOHELA Mismanagement and Abusive Practices\nI am writing to formally lodge a complaint regarding the mismanagement of my federal student loans by MOHELA (Missouri Higher Education Loan Authority), and to request a full investigation into my account as well as a discharge of the affected loan balance(s). This request is based on widespread allegations and recent investigations reported as of XXXX XXXX  concerning MOHELAs misconduct, which has significantly harmed borrowers  including myself  both financially and emotionally.\nAccording to recent public reports and investigations by multiple state attorneys general and regulators, MOHELA has been cited for:\n\tFailing to properly calculate monthly payments\n\tIssuing inaccurate bills and late fees\n\tMishandling income-driven repayment (IDR) paperwork\n\tDelays and errors in processing recertification forms\n\tProviding inaccurate or misleading information about repayment and forgiveness options\n\tCreating unnecessary delinquencies and defaults due to administrative failures\nThese systemic issues mirror my own experience with MOHELA. Specifically, I have experienced the following issues with my account:\n   Incorrect billing amounts that resulted in a delinquent status\n  Failure to process my application in a timely manner\n  Inaccessible customer service, making it nearly impossible to speak with a representative, which has caused missed payments and delays in receiving important account information necessary to maintain good standing\n\nI have made repeated efforts to resolve these issues directly with MOHELA, but the problems persist. Their negligence has not only jeopardized my financial health, credit score, and access to federal benefits, but has also caused immense stress. Their actions  or lack thereof  constitute gross mismanagement, and I believe they violate my borrower rights under federal law.\n\nGiven that MOHELA is currently under investigation for systemic abuses, I am requesting:\n1.\tA full review and audit of my loan account(s) serviced by MOHELA\n2.\tA formal response detailing corrective actions to resolve the errors on my account\n3.\tFull discharge or forgiveness of the impacted loan balance(s) due to mismanagement and borrower harm\n4.\tCompensation for fees, interest, or penalties accrued as a result of MOHELAs administrative errors\n5.\tConfirmation that my eligibility for programs such as IDR, Public Service Loan Forgiveness (PSLF), or Fresh Start has not been compromised\nPlease consider this letter a formal request for loan dispute resolution and borrower defense, and ensure that my rights under the Higher Education Act and applicable borrower protection laws are upheld.\nI am including documentation to support my complaint, including correspondence with MOHELA, billing statements, and any records of prior applications or disputes. If additional materials or forms are required, please notify me immediately.\nThank you for your attention to this urgent matter. I respectfully request a timely response and resolution, and I welcome the opportunity to speak further with an investigator or caseworker.\nSincerely,XXXX XXXX XXXXnLoan Account Number: XXXXXXXX

Company response to consumer: Untimely response