Consumer complaint received 2026-05-27 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA
State: MD

Complaint narrative:
I am submitting this complaint regarding the servicing of my federal student loans by MOHELA and the ongoing failure to properly address multiple pending federal relief programs associated with my account. In XX/XX/year>, I submitted a request related to my student loans, including participation in the XXXX XXXX XXXX XXXX ( PSLF ) program and a PSLF Buyback request. In addition, I am part of the XXXX XXXX post-class group seeking relief related to my student loans. Despite these active relief requests and pending determinations, my student loan balances continue to be reported on my credit file and remain unresolved. The continued reporting of these balances has caused measurable financial harm. I have been denied credit due to the presence of these loans on my credit report. This has negatively affected my ability to access credit, refinance debt, and maintain financial stability. I have contacted MOHELA multiple times seeking clarification and resolution. The responses I have received have been generic and unhelpful. Most recently, the MOHELA Ombudsman responded stating that they can not discharge my loans without approval from the Department of Education and that they are unable to provide any timeframe for resolution. This response failed to address several key issues raised in my complaint, including : The status of my PSLF qualifying payments The status of my XXXX Buyback request submitted in XX/XX/year> The continued negative credit reporting associated with these loans The financial harm resulting from the unresolved status of my account As the servicer responsible for managing my loan account, MOHELA has obligations to ensure the accuracy of information reported to consumer reporting agencies and to appropriately respond to borrower disputes. The continued reporting of loan balances that are subject to pending federal relief determinations raises serious concerns regarding compliance with the Fair Credit Reporting Act ( FCRA ) and fair servicing practices. This situation has caused significant financial hardship as well as emotional stress. I have complied with all application requirements and have acted in good faith throughout the process, yet my loans remain unresolved and continue to negatively affect my financial standing. I am requesting the following resolution : XXXX. A full review of my student loan account and pending relief requests. XXXX. A clear status update regarding my XXXX eligibility and PSLF Buyback request. XXXX. Confirmation of the status of my Borrower Defense claim. 4. Review and correction of any inaccurate or harmful credit reporting while these determinations are pending. 5. Clear communication regarding the steps being taken to resolve my account. I am seeking transparency, accountability, and timely resolution of these issues, as the ongoing delays and lack of meaningful responses have caused substantial financial and emotional hardship. In addition to the issues described above, I am concerned that this situation reflects a broader breakdown in federal student loan servicing and borrower communication. My attempts to obtain clear and meaningful information about my account have resulted only in generic responses that shift responsibility between the loan servicer and the Department of Education. As a borrower, this creates an impossible situation where neither party provides accountability or a timeline for resolution. When borrowers are participating in federally established relief programs such as XXXX, PSLF Buyback, and XXXX XXXX, the lack of coordination and transparency between the servicer and the Department of Education places borrowers in prolonged financial uncertainty. Servicers are responsible for managing borrower accounts and communicating accurate information, yet I have been unable to obtain a substantive response addressing my specific account status. This experience raises concerns about systemic servicing practices, particularly when borrowers are left with unresolved accounts that continue to negatively affect their credit and financial stability despite active relief applications. I respectfully request that this matter be reviewed not only at the individual account level but also from the standpoint of servicing oversight and borrower protection. Given the financial harm and lack of resolution through normal servicing channels, I am requesting the CFPBs assistance to ensure my account receives a proper review and that the servicer provides clear and accurate information regarding the status of my federal relief requests.

Company response to consumer: Untimely response