Consumer complaint received 2025-10-29 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Problem with customer service
Company: MOHELA
State: LA

Complaint narrative:
I am filing a complaint against Mohela for failing to correct long standing reporting errors on my federal student loan account. My account was transferred from XXXX servicing approx XXXX years ago. At the time of transfer, it should have been placed in paid ahead status ( as it was with XXXX  XXXX ). Multiple Mohela representatives confirmed this verbally and promised the issue would be resolved in XXXX weeks. Despite numerous call and escalations over the past nearly XXXX years, the account remains misreported. Because of Mohela 's failure to correct this error, my credit reports with Equifax and TransUnion now show false delinquencies, payment history changes, and balance increases- all of which are inaccurate. I am requesting that Mohela immediately correct these errors, update all credit bureaus to accurately show my paid ahead and on time payment history and confirm this in writing. 
The following letter, which is more detailed than above summary, was also mailed to Mohela. 
Subject : Formal Dispute of Credit Reporting and Mismanagement of Loan Account Please note that my account was originally under # -- -- -- -- -- and I was recently informed by a Mohela representative on XX/XX/XXXX that it has since been reassigned to # -- -- -- -- --. This dispute pertains to the same underlying loans and payment history associated with both account numbers. 

To Whom It May Concern, I am writing to formally dispute the inaccurate reporting and mismanagement of my federal student loan account following its transfer from FedLoans to Mohela. The errors described below have caused significant harm to my credit and financial standing and must be corrected immediately. 
My account was previously serviced by XXXX, where it was properly placed in paid-ahead status due to my XXXX XXXX XXXX XXXX XXXX XXXX ) service awards and large lump-sum payments. My XXXX contracts were as follows : XX/XX/XXXX through XX/XX/XXXX ( paid {$50000.00} to Fed Loans ) XX/XX/XXXX through XX/XX/XXXX ( paid {$50000.00} to Fed Loans ) Current : XX/XX/XXXX through XX/XX/XXXX ( paid {$50000.00} to Mohela ) When my account was transferred from FedLoans to Mohela ( approximately in XXXX ), Mohela failed to carry over the paid-ahead status that was already established. This error was immediately evident when I began receiving billing statements despite having no outstanding balance due. 

Over the course of XXXX, XXXX and XXXX, I made numerous phone calls to Mohela, spending countless hours attempting to have this corrected. I spoke with multiple representatives and supervisors who all acknowledged that the issue was due to an internal error during the transfer and that it would need to be fixed by their department. On several occasions, I was told my account had been escalated for resolution and would be corrected within XXXX weeks. Unfortunately, that never happened. Each time I followed up, the next representative would repeat the same promise, and the issue remained unresolved. 
At XXXX point, Mohela representatives offered a temporary forbearance while they worked on correcting the paid ahead status. I accepted the forbearance, relying on their assurances that my account would soon be restored to its proper status. Unfortunately, even after the forbearance ended, the issue persisted, and no correction was ever made. 
In an attempt to rectify the situation myself, I made a {$50000.00} payment directly to Mohela on XX/XX/XXXX, believing that this would finally trigger the proper paid-ahead coding on my account. Despite this large payment and my clear eligibility for paid-ahead status, Mohela again failed to apply it correctly, and continued to generate bills, late fees, and false delinquency notices. 
This ongoing administrative failure has now resulted in false derogatory reporting to the credit bureaus in XX/XX/XXXX, including inaccurate notations of delinquent payment, payment history changes, and a balance increase. These are factually incorrect and directly contradict my actual payment history and account status. 
I am requesting that Mohela immediately : XXXX. Retroactively correct my account to reflect continuous paid-ahead status from the time of transfer from XXXX, not merely from the date of the {$50000.00} payment. 
XXXX. Remove all erroneous credit reporting from XXXX, XXXX, and XXXX, and provide written confirmation of correction. 
XXXX. Remove all late fees, interest, or penalties that were improperly assessed as a result of this error. 
XXXX. Provide a written explanation of how this issue will be permanently corrected to prevent future misreporting or billing errors. 

Given the length of time I have sought resolution without success, I am concurrently submitting this complaint to the Consumer Financial Protection Bureau ( CFPB ) and the XXXX XXXX XXXX Ombudsman Group, for further review and oversight. I trust that this matter will now receive the prompt and thorough attention it should have received years ago. 
Thank you for your immediate attention to this matter. Please confirm receipt of this letter and provide a written response outlining your corrective actions. 

Sincerely,

Company response to consumer: Untimely response