Consumer complaint received 2026-04-07 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: CO

Complaint narrative:
b'I am a public service employee who has been pursuing Public Service Loan Forgiveness (PSLF) for over 15 years, beginning in approximately XXXX Throughout my career I have worked at multiple qualifying public service employers including public school districts and 501(c)(3) nonprofit organizations. I have diligently submitted Employer Certification Forms (ECFs) with accurate employment information throughout this period.\n\nAt least two federal loan servicers have failed to correctly process my submissions, and neither has taken responsibility.\nXXXX XXXX XXXX XXXX Previous PSLF Servicer\nMy PSLF account was managed by XXXX XXXX XXXX which was the designated PSLF servicer from XXXX until it exited XXXX XXXX XXXX in late XXXX During XXXX tenure, I submitted multiple ECFs including forms for ISD 622 (submitted XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, and others. XXXX either failed to process these forms correctly, entered inaccurate employment dates, or failed to complete processing entirely before transferring my account to MOHELA.\n\n2. Account Transfer to MOHELA Data Loss and Corruption\nWhen my account transferred from XXXX to MOHELA in approximately late XXXX, my PSLF data transferred with errors. Employment dates in MOHELAs system do not accurately reflect what I submitted on my original ECFs. MOHELA inherited XXXX mistakes and has compounded them by failing to reconcile the data or correct the errors despite my efforts to flag them. In XXXX XXXX I resubmitted updated PSLF employer verification information to MOHELA and inaccuracies continued to persist. Moreover, there is severe confusion in reporting who serviced my loans and when. \n\n\n \nFSA.gov Confirms Systemic Processing Failure\nMy FSA.gov account activity provides direct evidence that my submissions have not been properly processed. As of today, every PSLF form I have ever submitted still shows a status of "In Progress" on FSA.gov, including:\nEmployer\tLast Updated\tStatus\tYears Pending\XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXn\nForms submitted over a decade ago should not still be "In Progress." This is not a borrower failure this is a systemic processing failure by both FedLoan Servicing and MOHELA.\n\nInformation is inaccurate and inconsistent across several of my portal. On "https://studentaid.gov/my-aid/public-service-loan-forgiveness-payments/employment-certification" Submission dates do not accurately reflect accurate submission dates. Example: I submitted updated Employer Verification forms for the XXXX XXXX. This record states, "Employer NameXXXX XXXX XXXX XXXX XXXX XXXX XXXXTHIS IS INACCURATE. Submission took place in XXXX XXXX XXXXANOTHER EXAMPLE: On https://studentaid.gov/my-aid/servicer-history for Servicer History, Dept of ED/MOHELA is showing that it is my current loan servicer. The date is XXXXPresent. However, looking at previous history, the website shows that "Dept of ED/MOHELA" serviced my loan from XXXX Federal Student Aid has done a poor job in sharing information that is clear, accessible, consistent and understandable. Information is overly confusing and current statues and updates in my portal on https://studentaid.gov/my-aid/ is fails in terms of consistency.\n\nDirect Financial Harm from Servicer Errors\nMy account currently shows the following payment counts, which I believe are inaccurate due to the processing failures described above:\nLoan\tQualifying\tNeed Cert\tNeeded for 120\tEst. Forgive\nConsolidation XXXX moreXXXX XXXXConsolidation XXXX XXXX XXXXSubsidizeXXXX XXXXXXXX XXXX XXXXConsolidation XXXX XXXX XXXXnUnsubsidized XXXX XXXX XXXXnUnsubsidized XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXXMy consolidation loans alone show 108 qualifying payments with 71 additional payments "needing employer certification" payments I already submitted certification for. If even 12 of those 71 months are correctly credited, I have already exceeded the 120-payment threshold and should have received forgiveness. Instead, MOHELA shows a forgiveness date XXXX XXXX XXXX The combined balance on these two consolidation loans is XXXX. My total federal student loan balance across all loans now exceeds $XXXX inflated significantly by interest that has continued to accrue while my ECFs sit unprocessed.\n\nThe financial harm includes: continued monthly payments on consolidation loan balances totaling XXXX XXXX XXXX XXXX XXXXhat may already qualify for forgiveness, with a total federal student loan balance now exceeding XXXXXXXX due in significant part to interest accruing on balances that should have been discharged; potential overpayments beyond the 120-payment threshold that should be refunded; and over a decade of administrative burden attempting to identify and correct errors that were caused by federal servicers, not by me. The continued accrual of interest on these balances while servicer errors remain uncorrected constitutes ongoing financial harm every single day.'

Company response to consumer: Untimely response