Consumer complaint received 2026-01-18 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: IN

Complaint narrative:
I am submitting this complaint regarding MOHELAs loan servicing practices, which appear to be systemically broken and create unnecessary barriers to borrowers managing their accounts accurately and on time. 

MOHELA makes it nearly impossible to manage or modify auto-debit ( auto-pay ) settings through its website. Attempts to change or update auto-pay are confusing, inconsistent, and frequently unsuccessful, even when following MOHELAs stated procedures. The website does not reliably confirm whether changes have been accepted or applied, leaving borrowers uncertain about their payment status. 

Additionally, MOHELAs online system routinely displays incorrect or contradictory information regarding payment amounts, due dates, and account status. Payment amounts change without clear explanation, and the system frequently shows that a payment will be missed even when sufficient funds are available and payments are scheduled or manually submitted. 

When I attempt to correct these issues by making manual payments, MOHELA often applies those payments incorrectly or inconsistently. Manual payments do not always resolve the falsely indicated delinquency, and in some cases appear to create further confusion or errors in how payments are credited to my account. 

These recurring issues create the impression that MOHELAs systems are designed in a way that increases the likelihood of borrower error, missed payments, or perceived delinquency, despite good-faith efforts to pay on time and in full. The lack of transparency, unreliable account information, and difficulty performing basic account functions place an unreasonable burden on borrowers and raise serious concerns about compliance with fair servicing standards. 

When I attempt to contact MOHELA for assistance with these issues, customer service is frequently unavailable, and their offices are often closed during the limited times when I am able to step away from work. When support is technically available, wait times are often excessively long, making it impractical to remain on hold long enough to reach a representative. This makes it unreasonably difficult to obtain timely help or clarification regarding errors on my account. The lack of accessible customer support, combined with unreliable online systems, places an unfair burden on borrowers who are actively trying to resolve servicing problems in good faith. 

This is not an isolated or one-time issue, but an ongoing pattern of website functionality problems, inaccurate account information, and improper payment application. I am requesting CFPB review of MOHELAs servicing practices, website functionality, auto-pay administration, and payment processing procedures, as well as corrective action to ensure borrowers can reliably manage their loans without fear of incorrect delinquency or servicing errors. 

Sincerely, XXXX XXXX

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