Consumer complaint received 2025-09-17 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with forgiveness, cancellation, or discharge
Company: MOHELA
State: TX

Complaint narrative:
I am writing to file a formal complaint against MOHELA, the student loan servicer responsible for managing my federal student loan. Since the time my student loans were reassigned under MOHELA I have been in the dark about an accurate amount I owe and a suitable plan for repayment. Over the course of my interactions with MOHELA, I have encountered several serious issues related to the mismanagement of my loan, and I am seeking your assistance in resolving these matters. Additionally, I request that my loan be considered for forgiveness due to the significant errors and resulting financial strain, concern, and worry over this debt.

Summary of Issues : Incorrect Application of Payments : I have made payments on my student loan, yet MOHELA has failed to apply them correctly or provide me with up to date balance information. On several occasions, I received notices indicating that my payments were either not credited or incorrectly processed, which has resulted in discrepancies in my loan balance and the potential for a negative impact on my credit.

Failure to Process Income-Driven Repayment ( IDR ) Plan Applications : I applied for an Income-Driven Repayment plan and was told my application was processed. However, the correct repayment amount was never applied to my account, and I was not placed on the appropriate plan. Despite numerous attempts to resolve this issue with MOHELA, no corrective action has been taken.

Inadequate Customer Service : I have contacted MOHELA multiple times through both phone calls seeking clarification and resolution for this debt. Unfortunately, my interactions with their customer service have been unhelpful and unproductive. I have received conflicting information, long delays in responses, and no real solutions to the issues Ive raised. This lack of clear communication has further exacerbated my frustration.

Accruing Interest Due to Mismanagement : As a result of MOHELAs mishandling of my account, I have faced the accrual of unnecessary interest charges and penalties that would not have been applied if the account were managed properly. This mismanagement has caused my loan balance to increase and me to be in the dark about the status of the loan.

Difficulty with Public Service Loan Forgiveness ( PSLF ) : Additionally, I have faced significant challenges in attempting to apply for Public Service Loan Forgiveness ( PSLF ). The process of submitting the necessary paperwork, including employment certification forms, has proven to be unnecessarily complicated, and I have not received timely feedback or updates on my application status. Ive submitted multiple forms, but responses from MOHELA have been either delayed or lacking in clarity, leaving me uncertain about whether I am meeting the requirements. The lack of transparency and communication regarding the status of my PSLF application has added further stress to an already difficult financial situation. I have worked for the federal government and state government which is sufficient to qualify for this forgiveness program. I It is disheartening that, despite my continued efforts to follow required procedures for PSLF, I am left without clear guidance or a sense of progress, while my loan continues to grow due to the mismanagement of my account.

Given the numerous errors, lack of proper communication, and mismanagement of my account, I believe that my loan should be eligible for forgiveness under the Public Service Loan Forgiveness ( PSLF ) program or another relevant federal forgiveness program. The difficulties Ive faced in attempting to navigate the PSLF process, combined with the ongoing financial strain caused by MOHELAs mismanagement, make forgiveness the most appropriate and just solution. 

I respectfully request that the Consumer Financial Protection Bureau investigate my complaint against MOHELA and provide assistance in resolving these issues. Additionally, I request that my student loan be forgiven due to the ongoing mismanagement and the undue financial hardship caused by MOHELA 's actions. 

I am happy to provide any further information required for your investigation. 
I would appreciate a prompt acknowledgment of this complaint and any steps that can be taken to address the issues I have outlined. I look forward to your assistance in resolving this matter in a timely manner. 


Sincerely,

Company response to consumer: Untimely response