Consumer complaint received 2025-12-26 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: CA

Complaint narrative:
Mohela did not properly inform me of my Parent Plus Loan Payment due dates, which resulted in my account becoming overdue 90, 120, and 150 days on two Parent Plus Loans. The Federal Credit Reporting Act ( FCRA ) and the Higher Education Mandate specify notification procedures such as sending required physical written notices via mail at least 30 days prior to reporting a late payment to the credit bureaus and by giving multiple written warnings before a loan is marked as officially delinquent. This did not occur. Please note that the personal email address on file was an account that had been hacked and no longer in use. When addressing my child 's student loans in XXXX, I discovered these overdue Parent Plus loans. I immediately placed the loans on forbearance while determining how to address them. On XX/XX/year>, I wrote a letter to Mohela informing them I was unable to access my Mohela account as my birthdate was incorrect, which did not allow for any access to my account ( please see attached document ), On XX/XX/year>, I informed Mohela of their lack of following proper procedures, but they did not provide evidence of the proper written notification. Please note that I have an exceptional payment history with my other three other Mohela student loans ( please see attached documents ) as well as an exceptional credit history overall. I have also since paid-off, in full, these two Parent Plus loans ( please see attached document ). I have contacted Mohela multiple times to correct my credit reports to no avail. Mohelas reporting of delinquent payments, without proper notification, has significantly damaged my credit record and has resulted in an almost XXXX point drop in my credit report ratings. As a result, this has significantly, negatively impacted my ability to obtain further credit. Also, I did not receive an adequate letter indicating that the Parent Plus loans have been paid-off. A letter stating that " payment has been received '' does not adequately indicate the the loans have been paid in-full. Instead, it implies that there is more payment due ( please see attached document for another student loan paid-in-full with this missing information ). I would also like to note that it is very difficulty contacting a representative at Mohela. Their poor ratings may be reflective of this : XXXX XXXX XXXX XXXX XXXX XXXX XXXX Customer Satisfaction Metrics according to US Department of Education data worst performing student loan servicer across all federal student loan servicers Consumer Financial Protection Bureau ( CFPB ) and the Federal Student Aid ( FSA ) Ombudsman, highlight widespread servicing failures and a historic spike in borrower complaints against MOHELA. MOHELA services about 20 % of federal loan accounts but accounts for 41 % of overall student loan servicer complaints

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