Consumer complaint received 2026-01-25 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: NC

Complaint narrative:
To Whom It May Concern, I am submitting this formal complaint regarding the handling of my federal student loans currently serviced by MOHELA. I am writing because the status of my account, the lack of clarity around repayment, and the repeated administrative inconsistencies have left me frustrated, overwhelmed, and feeling taken advantage of by a system that appears broken and unreliable. 

For an extended period of time, my MOHELA account has displayed no payment required, with no meaningful explanation, timeline, or proper documentation explaining why this is the case, how long it will last, or what I am expected to do as a borrower. While it may appear on the surface that no payment is due, the reality is that this lack of transparency creates serious financial risk for borrowers like me. I do not know whether interest is accruing, whether I am in an official forbearance, whether my repayment plan is active, or whether MOHELAs system is simply failing to calculate and bill correctly. 

Despite attempting to stay compliant, the system provides no reliable guidance. Statements change, account fields update without notice, and communications are vague or nonexistent. I am expected to manage tens of thousands of dollars in federal debt, yet MOHELA can not provide something as basic as a clear, consistent, legally accurate payment obligation. 

This creates the feeling that borrowers are trapped in a massive administrative maze that benefits the servicer while leaving the borrower exposed. I want to be very clear : I am not trying to avoid repayment. I am trying to understand what I owe, when I owe it, and under what legal status my account currently exists. Right now, MOHELA is failing to provide that. 

In XXXX, I contacted MOHELA regarding these same issues and was explicitly told that my inquiry had been escalated and that I would receive a response within 90 days. It is now the end of XXXX, more than XXXX months later, and I have received no response, no clarification, and no resolution. This failure to meet even their own stated timelines adds to the sense that borrower concerns are not being handled responsibly or in good faith. 

The emotional and financial toll of this confusion is significant. As a borrower, I should not feel anxious opening my loan account wondering whether I am unknowingly falling behind, being misclassified, or accumulating interest without notice. The current system feels less like responsible loan servicing and more like an opaque process where accountability disappears and the borrower carries all the risk. 

It is extremely concerning that MOHELA continues to show no payment required without a written explanation of : - Whether I am in administrative forbearance - Whether interest is accruing - What repayment plan I am actually on - When billing will resume - How servicing transitions or litigation have impacted my account - Whether my compliance status is protected Without this information, borrowers are essentially asked to trust a system that has repeatedly demonstrated technical failures, delayed processing, missing notices, and inconsistent servicing behavior nationwide. 

I also want to express how overwhelming it feels to navigate this process. Borrowers are directed to portals, automated phone systems, and generic responses, while real human accountability is absent. It gives the impression that this system is designed more to delay and deflect than to actually serve borrowers in good faith. 

At times, it honestly feels like a massive administrative scam not in the sense that loans are fake, but in the sense that the structure benefits from confusion, silence, and lack of documentation, while borrowers are left exposed to potential penalties, interest, and long-term financial harm without clarity or consent. 

Therefore, I am requesting the following in writing : 1. A clear explanation of my current account status.

2. Confirmation of whether I am in forbearance, deferment, SAVE, IDR, or another plan.

3. Whether interest is accruing during this period.

4. When payments are expected to resume. 
5. Assurance that no negative reporting, penalties, or retroactive charges will occur due to MOHELAs administrative delays.

6. A written payment schedule once the account is properly calculated. 

Borrowers deserve transparency, accuracy, and accountability not uncertainty and silence. I have acted in good faith, and I expect MOHELA and the Department of Education to do the same. 

Please treat this as a formal complaint and provide a documented written response. I am keeping copies of this communication for my records. 

Sincerely, Federal Student Loan Borrower MOHELA Account Holder

Company response to consumer: Untimely response