Consumer complaint received 2025-08-01 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: MN

Complaint narrative:
I received forgiveness under the Public Service Loan Forgiveness ( PSLF ) program in XX/XX/XXXX. Every loan was removed from my account with both MOHELA and the Department of Education ( StudentAid.gov ). 
However, in XX/XX/XXXX, I received a billing statement from MOHELA. At that time, two loans # XXXX and # XXXXsuddenly reappeared on my account, despite everything being forgiven and zeroed out. I contacted MOHELA multiple times and eventually escalated the issue to a manager. During a one-hour call, the manager confirmed there was an error but was unable to resolve it. She noted my account, and I was told the issue was under review. 
As of today, XX/XX/XXXX, the problem remains unresolved. Loan # XXXX is now showing an entirely different balance than it did initially. In XX/XX/XXXX, it reflected a balance of {$8000.00}. In XXXX, the balance inexplicably jumped to over $ XXXXan amount that was never even disbursed for that loan. This is not only inaccurate, but it also raises serious concerns about how these figures are being calculated. The loan was forgiven, and the current reported balance is entirely incorrect. 
I called MOHELA again on XX/XX/XXXX. After waiting an hour to speak with a representative, I was told once again that she didn't know why the amounts kept changing and would escalate the issue to a manager. I was transferred, but after holding for over an hour, the call was disconnected. No resolution was provided. 
According to both my account on StudentAid.gov and a representative from the Department of Educationwhose transcript I havethose loans dont exit, everything was forgiven. None of these loans are listed on my official federal loan account and should not exist. MOHELA is reporting loans that were legally discharged, and on top of that, is listing incorrect and inflated balances. 

I have also contacted StudentAid for assistance, and the issue was escalated to the Federal Student Aid Ombudsman Group/ and a group with the Attorney Generals office. However, I was informed that they are currently unable to help due to cuts in federal staffing, leaving me with no clear avenue for support or resolution. 

In the absence of effective support, I am reaching out to every student loan forgiveness and advocacy organization I can find, and I am cconsidering pursuing legal avenues to resolve this matter. MOHELAs failure to correct this error is not only financially and emotionally damaging but appears to be a violation of my borrower rights under federal loan forgiveness programs. 

Ive contacted MOHELA repeatedly without receiving any meaningful help. Ive also reached out to the Attorney Generals Office ( which is currently inactive due to federal staffing changes ) and the Consumer Financial Protection Bureau a few times with no response yet because they are waiting on Mohela, go figure. 

As of XX/XX/XXXX, I spent another four hours on the phone with MOHELA. Again, I was told that issues are still being worked on. 

XX/XX/XXXX, MOHELA is now reporting that I owe over {$30000.00} on loan # XXXX aloneanother completely random and erroneous figure. These numbers keep changing without any explanation, and all of this is in direct contradiction to what the Department of Education has confirmed multiple times : these loans were included in my consolidation and PSLF forgiveness. 

I earned PSLF. I didnt sit there and pay nothing. I followed the rules, I made my payments, I did everything I was supposed to do. And when it was time for forgiveness to actually happen, I had over 2 years more of payments. Now, because no one hold Mohela accountable and because the servicing system for students is atrocious, I am getting hit with a balance that makes no sense, a balance that was and should be forgiven. 

In XXXX, I disputed the amounts with my credit bureau that Mohela had reporting. 
Oddly enough, Mohela UPDATED the balances on my loans with the credit bureau - showing a balance of XXXX OWED! However, they still as of XX/XX/XXXX show I owe nearly {$32000.00} to them on my Mohela account. It makes no sense that they can confirm with the credit bureau that they balance is XXXX but they can't correct it on my account. It makes no sense that the Dept of Education / Studentaid.org can tell you my balance is XXXX and those loans don't exist - as the maker of the loans - yet Mohela can have them on my account? 

I am urgently requesting, and pleading, that MOHELA correct my account, remove loans # XXXX and # XXXX, and ensure my loan history accurately reflects the forgiveness granted and confirmed by the Department of Education.

Company response to consumer: Closed with explanation