Consumer complaint received 2025-06-02 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: MOHELA
State: DE

Complaint narrative:
I am submitting this formal complaint against MOHELA for their continued, willful misreporting of multiple student loan accounts that have either been forgiven or discharged under federal programsyet still appear as outstanding debts on my credit report. This is not only inaccurate but a direct violation of federal law. Specifically : Three ( 3 ) loans were forgiven over six months ago under a federal loan forgiveness program ( Public Service Loan Forgiveness ). Two ( 2 ) additional loans were fully discharged because the institution I attended lost its accreditation and eligibility to participate in federal aid programs ( Borrowers Defense ). 

Despite multiple written and electronic requests over the past six months, including providing documentation of the forgiveness and discharge determinations, MOHELA has failed to update the status of these accounts on my credit reports ( Equifax, Experian, and TransUnion ). These loans continue to appear as open and in repayment, with balances that no longer exist. 

I am deeply familiar with the requirements under the Fair Credit Reporting Act ( FCRA ). Per 15 U.S. Code 1681s-2 ( a ), MOHEL ( as a data furnisher ), has a legal obligation to report only accurate, complete, and up-to-date information. Furthermore, under 1681s-2 ( b ), they are required to promptly investigate disputes submitted by the consumer or via the credit reporting agencies, and to correct or delete inaccurate or unverifiable information. 

Their continued failure to do so ( despite ample evidence submitted and formal disputes ) suggests either gross negligence or intentional noncompliance. This is especially alarming given that these loans are federally backed and governed by oversight mechanisms. 

The harm to me has been measurable and unacceptable. I was denied a loan due to what was labeled a high debt-to-income ratio ( a metric that would have been drastically reduced had MOHELA reported accurately ). This misinformation has affected my ability to refinance, secure favorable interest rates, and make progress on essential financial goal. Please see timeline below. 

XXXX I received Borrowers Defense Discharge Letter from DOE XXXX stating my loan sequence # XXXX XXXX and XXXX will be discharged due to school losing its accreditation. 
XXXX - Contacted MOHELA via phone and inquired status of my Borrowers Defense Discharge. XXXX advised that she could not see correspondence. Escalated to manager in credit. Spoke to XXXX. He put in XXXX tickets ( ending in XXXX and XXXX ), said account shows reviewed and reported on XX/XX/XXXX. Advised XXXX that CREDIT REPORT DOESN'T REFLECT ACCURATELY. Told me update can take up to 90 days. 
XXXX - I received Public Service Loan Forgiveness Eligibility letter from DOE confirming that loan sequence # XXXX XXXX and XXXX will be forgiven due to XXXX. 
XXXX - Contacted MOHELA via phone. Escalated call to credit XXXX. Spoke to XXXX. XXXX advised can not see correspondence from DOE regarding XXXX XXXX and that it should been processed already. XXXX way called DOE. DOE confirmed docs were sent to MOHELA on XX/XX/XXXX at XXXX, XXXX. Requested docs to be resent ASAP. Also faxed over copy of my docs same day to ensure MOHELA rec 'd all docs needed. XXXX put in new ticket ( ending in XXXX ). XXXX should be updated in 30 days. 
XXXX -Credit report shows that MOHELA XXXX account information however did not update any of my loan accounts to reflect accurate status, {$0.00} balance or that it is up to date. despite several tickets submitted, docs and correspondence sent, MOHELA still chose to report inaccurate information. 
XXXX XXXX MOHELA via phone. escalated to XXXX. Advised of recurring issue. Submitted XXXX tickets ( ending in XXXX and XXXX ). XXXX advised there is nothing they can do. Advised me to dispute with credit bureaus and submit a complaint on DOE website. I asked for a call back from a level XXXX XXXX and/or VP. said should receive a call in a week. Never received call.

Company response to consumer: Closed with explanation