Business Profile

Loans

MOHELA

This business is NOT BBB Accredited.

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Complaints

This profile includes complaints for MOHELA's headquarters and its corporate-owned locations. To view all corporate locations, see

Customer Complaints Summary

4,067 total complaints in the last 3 years.
1,373 complaints closed in the last 12 months.

If you've experienced an issue

Submit a Complaint

The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

Initial Complaint
Date:01/24/2023
Type:Customer Service Issues
Status:
ResolvedMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
My loans was transferred to Mohela from Fedloans back in the summer around July. I have submitted numerous PLSF documentation regarding employment verifications each month. I was informed that the ****************** was adjusting our forbearance and deferment payments in the fall and should be updated. I have received no communication from Mohela for the last 6 months regarding updates, documentation received or any type of follow-up. I don't know any business that runs this way. I understand that you are overwhelmed with PLSF application; however, you still need to communicate. The only communication is when I call and that's after I have been on hold for hours or even having to call and make many attempts for days. This poor customer service and if the changes were made to provide a better loan servicing company than once again, the system has failed.
Business Response
Date: 01/26/2023
MOHELA has received this customers inquiry. Please be advised that MOHELA will send a written response to, and/or will speak directly with, the customer addressing the issues raised in their complaint.
Customer Answer
Date: 01/28/2023
Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.

Sincerely,

***************************
Initial Complaint
Date:01/23/2023
Type:Customer Service Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
I have been waiting since July 18, 2022 to hear about my PSLF. This company has atrocious customer service and communication. I have received 3 letters saying I do not meet the conditions, although I do. The most recent letter said I have 2 qualifying payments, when I have far over 120. Every time I call, I have to wait for literal hours to speak to someone who cannot help me. I have been pushed back to the bottom of the 90 business-day wait once already. I have been working for the VA healthcare system for 12 years and have paid back more than I've borrowed but still owe thousands more due to terrible loan practices. While being a healthcare professional during COVID for the last 3 years, the dangled carrot of student loan forgiveness being repeatedly denied incorrectly is beyond reprehensible. I have read that the government is going to investigate MOHELA and I can only hope it's true. I've never experienced such a garbage company in regards to service and communication.
Business Response
Date: 01/26/2023
MOHELA has received this customer’s inquiry. Please be advised that MOHELA will send a written response to, and/or will speak directly with, the customer addressing the issues raised in their complaint.
Customer Answer
Date: 01/26/2023
Complaint: ********

I am rejecting this response because:

They have not contacted me. I have spent months and months being told repeatedly that I am denied only to spend hours on the phone on hold to be told to keep waiting. I want the company to contact me and give an update.
This is basically the entire reason I filed a complaint. The customer service is non-existent and it affects my entire budget.

Sincerely,

**** *******
Initial Complaint
Date:01/23/2023
Type:Customer Service Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
Over the past 4 months I have submitted my PSLF forms to MOHELA, waiting to hear whether they even received them. I ended up mailing and faxing the same forms because when I called them weeks later a representative could not verify that they had received any documents from me. Fast forward to today (1/23/23) and I received a letter informing me that my forgiveness of loans has not been approved, however it says is not updated as to the Pslf waiver that is currently paused by the department of education. I am currently waiting on hold for a MOHELA customer service representative- and it has been 58 minutes and counting. I’ve yet to talk to someone after calling multiple times and the wait times are egregious. I’m trying to figure out if I was straight up denied or if the firm is just a formality until the Dept of Education moves forward with the waivers.
Business Response
Date: 01/26/2023
MOHELA has received this customer’s inquiry. Please be advised that MOHELA will send a written response to, and/or will speak directly with, the customer addressing the issues raised in their complaint.
Initial Complaint
Date:01/23/2023
Type:Customer Service Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
I uploaded my PSLF Employment certification on 10/11/2022 and waited patiently. Today, I finally received a notice that it had been processed.

Unfortunately, the notice stated there were three pieces of missing employer information in Section 4 of my form. I opened the form from their website, and all of the information was clearly and very legibly written without any corrections or changes. The form stated to call Mohela if I disagreed with any information, so I called Mohela.

The representative agreed with me that the form was both complete and legible. She resubmitted the document with a note and informed me I would have to wait another ~3 months for it to be processed.

This is nearly unbelievable, and certainly not acceptable. Mohela clearly made a gigantic mistake processing my form the first time, so I am very doubtful that a second attempt is likely to go any better.
Business Response
Date: 01/26/2023
MOHELA has received this customer’s inquiry. Please be advised that MOHELA will send a written response to, and/or will speak directly with, the customer addressing the issues raised in their complaint.
Customer Answer
Date: 01/26/2023
Complaint: ********

I am rejecting this response because: I have not yet heard from Mohela. I will accept the response once Mohela resolves the issue with me directly, as they have indicated.

Sincerely,

**** *******
Initial Complaint
Date:01/23/2023
Type:Customer Service Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
I am now in my second hour of being on hold. I’m now waiting for escalations following a 45 minute fruitless discussion with a CSR. I am 15 minutes short of having a 3 hour phone call. The CSR could not provide an estimated wait time, nor has any estimate otherwise been provided.

I called because MOHELA has seemingly bifurcated my consolidated loans and apply internally inconsistent determinations to the qualifying employment (for purposes of PSLF) to those loans. After I recently filed a second PSLF form, MOHELA apparently decided to review my first form—despite FEDLOAN already approving it. Mohela then certified my employment for some—but not all periods—with respect to one of my (now) two loans—but not the other. The only offered solution by the CSR was to re-file my original PSLF form, allegedly to correct a failure to check a box indicating that the federal court for whom I was employed is (as it obviously is) a government institution. Fedloan never raised such a dispute, nor did MOHELA at any time until after I filed a second, unrelated PSLF form. I am shocked by this arbitrary, extremely belated, and internally inconsistent treatment. I am equally shocked by a servicer that requires that I endure a 3+ hour phone call just to speak with anyone with the ability to even consider correcting an obvious mistake.
Business Response
Date: 01/26/2023
MOHELA has received this customer’s inquiry. Please be advised that MOHELA will send a written response to, and/or will speak directly with, the customer addressing the issues raised in their complaint.
Initial Complaint
Date:01/23/2023
Type:Customer Service Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
Mohela has failed to update my eligible payment information for over a year on my account for my PSLF. I have updated repeatedly my information but just get the run around.
Business Response
Date: 01/26/2023
MOHELA has received this customer’s inquiry. Please be advised that MOHELA will send a written response to, and/or will speak directly with, the customer addressing the issues raised in their complaint.
Customer Answer
Date: 01/26/2023
Complaint: ********

I am rejecting this response because: To date their communication is lacking in clarity, and they never update my account. This is yet another delay.

Sincerely,

******* **********
Business Response
Date: 01/30/2023
MOHELA has received this customer’s inquiry. Please be advised that MOHELA will send a written response to, and/or will speak directly with, the customer addressing the issues raised in their complaint.
Initial Complaint
Date:01/23/2023
Type:Customer Service Issues
Status:
ResolvedMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
I filled out the **** request form with Aid Vantage for my Navient and Nelnet student loans. According to the forms received in the mail shortly after, I had 10 days from the date at the top of the forms to cancel if I choose not to transfer my loans to MOHELA. I called Aid Vantage and cancelled the request for **** within that 10 day period. I was told in October of 2022 that it was cancelled and my student loans would stay where they were with ******* and ******. I received repayment information from Navient, however, nothing from ******. After 3 months, I received an email from ****** stating my student loans were being transferred over to MOHELA February 3, 2023. I DID NOT APPROVE THIS! THIS IS FRAUD! I called Nelnet and they stated that I needed to reach out to MOHELA to get additional information as to why my student loans were being transferred without my consent. I went one step further and called Aid Vantage and Tierra advised that everything was cancelled on their end. I called MOHELA and after listening to multiple recordings I still have not been able to rectify this situation. I am currently on hold and have been for the past 1 hour and 46 minutes. The first person I spoke with, *********, advised that she was in training and the department she was trying to reach out to would not even answer her. Totally unacceptable! I have been transferred to a supervisor, however, they have not come on the line to even introduce themselves. So unprofessional. I DO NOT want my student loans transferred to MOHELA! I appreciate the service from Nelnet!
Business Response
Date: 01/25/2023
MOHELA has received this customers inquiry. Please be advised that MOHELA will send a written response to, and/or will speak directly with, the customer addressing the issues raised in their complaint.
Customer Answer
Date: 01/25/2023
Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. I look forward to speaking directly with a representative from MOHELA to resolve this issue quickly.

Sincerely,

*************************
Initial Complaint
Date:01/22/2023
Type:Customer Service Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
every time I speak with a MOHELA customer service rep i get a different answer. I submitted up to date paperwork from my employer to certify all my loans for public forgiveness and it is still processing since October 2022. They continue to put me on forbearance plan or plans that do not count towards qualifying

Your payment is made under a qualifying repayment plan repayment plans so I can get credit. When MOHELA took over my account they screwed my account and give me misleading information to keep me from getting anything approved. I made several phone calls to MOHELA, specifically requesting to be put on one of the PSLF-qualifying repayment options. MOHELA set up the payments improperly. My monthly payments are not counted toward PSLF. This is wrong and need to be corrected today. There are numerous errors on my account since it has been transferred to Mohela. Despite several calls to MOHELA to fix this, at the time of their complaint, nothing had been changed in their online account.
Business Response
Date: 01/25/2023
MOHELA has received this customer’s inquiry. Please be advised that MOHELA will send a written response to, and/or will speak directly with, the customer addressing the issues raised in their complaint.
Customer Answer
Date: 01/25/2023
Complaint: ********

I am rejecting this response because:

My employer sent more information. I want them to respond in writing. Every time I call, I get a different answer.

Sincerely,

******** *******
Initial Complaint
Date:01/21/2023
Type:Customer Service Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
My loans were transferred to MOHELA from *** **** *********, and that is where the nightmare began. I have been attempting to be placed on an income-based repayment plan since December. Initially my income-based payment was processed and applied to some loans, but not all loans, in error. After weeks of not being able to speak to someone on the phone about this, I finally spoke with someone two weeks ago who told me what my total collective payment amount would be, and that my repayment plan would be processed promptly. A week later I received a letter in the mail saying what my payment "approximately is" if the income-based repayment is even approved which won't take place for 60 days.

Additionally, yesterday I received an email from them saying it might take 90 days. The number of emails I have sent, and conflicting correspondence I have received regarding this cannot be adequately conveyed in this message. The reason this is all important is I am trying to buy a home and I cannot get a mortgage without a payment amount from MOHELA. The mortgage company doesn't understand why they can't give me an exact income-based repayment amount when they have my tax information from the IRS website and neither do I. All that needs to happen is for them to tell me how much I am going to being paying based on my tax information that was transferred directly from the IRS website, and is literally listed on ************** when you put in for the repayment plan. The only other place I know to turn is my congressman at this point.
Business Response
Date: 01/25/2023
MOHELA has received this customer’s inquiry. Please be advised that MOHELA will send a written response to, and/or will speak directly with, the customer addressing the issues raised in their complaint.
Initial Complaint
Date:01/21/2023
Type:Customer Service Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
My student loans were transferred to Mohela. I completed the forms for Mohela to review in order to make previously unqualifying payments qualifying per the new federal guidelines. This was months ago. I have no updates. I have been trying to contact them. This is NOT possible. I try to send a message when I log in but that is not possible. It directs you to drop down lists but once you make selections, it redirects back to the same page. This repeats. I tried to call and after pressing various combinations of prompts, there are only recorded messages and no way to contact a human. How am I or other borrowers supposed to contact Mohela? My only idea is to send a snail mail, **** certified letter which is preposterous that I should have to do this. This is BAD BUSINESS.
Business Response
Date: 01/25/2023
MOHELA has received this customer’s inquiry. Please be advised that MOHELA will send a written response to, and/or will speak directly with, the customer addressing the issues raised in their complaint.
Customer Answer
Date: 01/25/2023
Complaint: ********

I am rejecting this response because:
I will wait to see if Mohela actually follows through on what they said. They should call or email me. If they mail by ****, there is no way for me to communicate with them expediently. There MUST be a way to call or email them not just for myself but for all borrowers. They ADVERTISE that they can be called and emailed, but that is absolutely false inforamtion.

Sincerely,

***** ******

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MOHELA is NOT a BBB Accredited Business.