Consumer complaint received 2025-09-24 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: NC

Complaint narrative:
Complaint : I am submitting this complaint regarding my federal student loan accounts serviced by MOHELA. I am a Department of Defense civilian and a XXXX  spouse of an XXXX XXXX XXXX, and as such, my accounts are protected under the Military Lending Act ( MLA ) and the Servicemembers Civil Relief Act ( SCRA ). 

Summary of Issues : 1. Excessive Interest Rates : My student loan accounts have been assessed interest rates that exceed the 6 % cap required for individuals eligible under MLASCRA. This is in violation of my legal protections as a military-affiliated borrower.

2. Interest Charged During SAVE Forbearance : During the federal SAVE forbearance period, I continued to make payments and overpayments with the expectation that interest would not accrue. However, interest was applied to my accounts during this period. Despite my requests, MOHELA has neither returned these interest charges nor provided a clear adjudication or explanation.

3. Credit Reporting Harm : My accounts were reported as delinquent during the SAVE forbearance when no payment was required. This reporting negatively impacted my credit score, causing severe financial and emotional distress.

4. Lack of Financial Transparency and Audit : I contacted MOHELA and student aid.gov requesting a financial audit of my accounts to show interest applied during the SAVE forbearance and a complete account review. I was informed that MOHELA does not employ budget analysts and does not conduct financial audits. This lack of transparency appears to violate OMB Circulars and potentially the Federal Financial Management Improvement Act (
FFMIA ), as MOHELA functions as a feeder system for federal accounting but does not provide auditable records or reporting in compliance with federal requirements.

5. Conflicting Payment Notifications : I have received multiple conflicting statements regarding my payment schedule, interest accrual, and expected loan balance. This creates confusion and makes it impossible to accurately track my repayment obligations.

6. Predatory Loan Balance Practices : Despite paying nearly {$9000.00} toward my loans ( reducing my balance from approximately {$36000.00} to {$27000.00} ), MOHELAs current projections indicate that my balance will return to roughly {$36000.00} within a few months. This appears to be an unfair and predatory practice inconsistent with federal regulations and repayment expectations.

Requested Actions : 1. Conduct a full internal audit of my student loan accounts at MOHELA, including interest accrued during SAVE forbearance.

2. Correct any improper interest charges and provide an account adjudication consistent with federal law.

3. Investigate the improper reporting of my accounts to credit bureaus during periods when no payment was due.

4. Ensure that all borrowers impacted by SAVE forbearance are supported and have accurate, transparent account information.

5. Require MOHELA to comply with federal accounting and reporting standards under OMB Circulars A-11 and A-123 and provide documentation for audit purposes.

I respectfully request that the CFPB review these concerns and take action to ensure my rights under MLASCRA, SCRA, and applicable federal financial reporting laws are fully protected.

Thank you for your attention to this matter.

Company response to consumer: Untimely response