Consumer complaint received 2025-05-05 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: OH

Complaint narrative:
To Whom It May Concern, I am filing a complaint regarding the mishandling of my XXXX XXXX XXXX XXXX ( XXXX ) application and the resulting incorrect loan balance. 
I submitted my XXXX form on XX/XX/XXXX, not XX/XX/XXXX, as previously stated by MOHELA. At that time, I had three federal loans : Loan 1 : XXXX XXXX XXXX approximately {$13000.00} Loan 2 : XXXX XXXX XXXX approximately {$37000.00} Loan 3 : XXXX XXXX XXXX approximately {$85000.00} According to a repayment count letter dated XX/XX/XXXX, the qualifying payment status was as follows : Loan 1 : 60 of 120 qualifying payments Loan 2 : 120 of 120 qualifying payments Loan 3 : 120 of 120 qualifying payments On XX/XX/XXXX, I contacted MOHELA to inquire about the status of forgiveness for Loans XXXX and XXXX. A representative advised me to consolidate Loan 1 with Loan 3, citing a recent policy change that would still allow the new consolidated loan to qualify for XXXX. I expressed concern that this might interfere with the forgiveness process, particularly since Loans 2 and 3 had already reached 120 qualifying payments. The representative assured me that the consolidation would be completed well before forgiveness occurred, which she said was not expected until XX/XX/XXXX. Based on this guidance, I submitted the consolidation application the same day, with the representative assisting me over the phone. 
However, on XX/XX/XXXX, I received a discharge notice indicating that Loans 2 and 3 had been forgiven, totaling {$130000.00} ( {$39000.00} and {$99000.00} ). Then, on XX/XX/XXXX, I was informed that a new consolidation loancombining Loans 1 and 3had been funded, with a new balance of approximately {$110000.00}. This was confusing and alarming, as Loan 3 had already been forgiven XXXX days earlier. Now, my account reflects a new loan balance of over {$120000.00}. 
At the same time, I was told that MOHELA was undergoing a transition and that all accounts were being transferred to a new MOHELA, now managed by XXXX XXXX. During this transition, I called MOHELA several times to report the issue and was repeatedly reassured that they were working on the matter and that my loans would be forgiven. I made calls from XX/XX/XXXX through XX/XX/XXXX, and after receiving no resolution, I contacted the XXXX XXXX XXXX  XXXX. Unfortunately, their assistance was limited. In their last reply, they stated : Dear, Thank you for contacting the U.S. Department of Education 's ( ED ) XXXX XXXX XXXX XXXX XXXX. This message is in reference to your inquiry regarding your XXXX XXXX XXXX XXXX ( XXXX ). Your case number is # XXXX. Please retain this number for reference. 
ED records show that you submitted a XXXX form on XX/XX/XXXX, then submitted an application to reconsolidate your loans on XX/XX/XXXX, before your XXXX was fully processed. Your new consolidation loan was funded on XX/XX/XXXX, satisfying the balance on your underlying loans. Because no XXXX form has been received since XX/XX/XXXX, the XX/XX/XXXX Consolidation Loan has not been reviewed. Therefore, you must submit a new form certifying continued employment in order to have the new loan reviewed. 
This response contradicts everything I was told by multiple MOHELA representatives over the course of XXXX years. I was repeatedly assured that a new XXXX form would not be required and that my loans were already in the process of forgiveness. This email from the XXXX was the first time I was told a new form would be needed. 
I replied with the following email and am awaiting a response : Hello, Thank you for your response. 
In your previous email, you stated that the XXXX form was submitted on XX/XX/XXXX. However, the form was actually submitted on XX/XX/XXXX. Please see the attached File 1 XXXX Form for reference. 
At the time I submitted my forgiveness application, I had three loans : Loan XXXX : XXXX XXXXXXXX XXXX approximately {$13000.00} Loan XXXX : XXXX XXXX XXXX approximately {$37000.00} Loan XXXX : XXXX XXXX XXXX approximately {$85000.00} According to the repayment count letter dated XX/XX/XXXX, the status was as follows : Loan 1 : 60 out of 120 qualifying payments Loan 2 : 120 out of 120 qualifying payments Loan 3 : 120 out of 120 qualifying payments Please see XXXX XXXX  Repayment Count Letter and XXXX XXXX XXXX Payment Counts for details. 
Under the guidance of a MOHELA representative who walked me through the process, I submitted a consolidation application on XX/XX/XXXX. I was advised that I could consolidate Loan 1 with Loan 3 and that this would still qualify for forgiveness under my existing XXXX application. I voiced concern that this could interfere with my loan forgiveness, but the representative assured me that it would not and that forgiveness wouldnt occur until XX/XX/XXXX at the earliest. 
On XX/XX/XXXX, I received notice that Loans 2 and 3 had already been forgivenbefore the consolidation loan was funded on XX/XX/XXXX. See XXXX XXXX Loan 2 & 3 Discharge Letter. 

I now have several urgent questions : I have provided documentation that clearly shows I should not owe over {$120000.00}. I am requesting that this amount be forgiven immediately, without requiring a new XXXX form, based on the guidance I received from MOHELA and the fact that this is only now being brought to my attention. 


How could a consolidation loan that included Loans XXXX and XXXX be processed and funded on XX/XX/XXXX, if Loan 3 was already discharged on XX/XX/XXXX? 


I have been in regular contact with MOHELA for over XXXX years. Why is this the first time I am hearing that a new XXXX form is needed? 


If this is considered a new loan, and I submit a new XXXX form certifying my employment, will this new loan ( now over {$120000.00} ) qualify for forgiveness? Or have my qualifying payment counts been reset to zero? 


All calls are recorded. Can I please receive copies of all call recordings made between XX/XX/XXXX, and XX/XX/XXXX? 



This entire situation contradicts the rules of XXXX and the consistent verbal instructions I received from MOHELA. I followed their process in good faith. Now, I am faced with a large loan balance that should not exist, despite having met all XXXX requirements. 
I am requesting immediate forgiveness of the full remaining balance. This new loan only exists because of inaccurate guidance provided by MOHELA representatives. I also request written confirmation that this error has been corrected. 
I am hoping the CFPB can assist with resolving this matter. 
Thank you for your time and attention.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation