Business Profile

Loans

MOHELA

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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.

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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:01/21/2023
Type:Service or Repair 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 applied for TEPSLF/PSLF in May of 2022. It took Mohela, after becoming the new loan servicer, eight months to send a letter to me 1/1/2023 to inform me that "We determined that you successfully met the requirements of the PSLF Program and your loans listed below have been forgiven. Thank you for your public service!." The loans forgiven were both the unsubsidized and subsidized accounts.

On 1/17/2023, approximately, I had to file a credit dispute because Mohela had not reported to credit bureaus that my accounts were paid and closed. Finally on 1/21/2023 ******** and other bureaus now reflect the account paid.

Here are my present complaint's elements: 1) I never actually received notice of the number of qualifying payments; 2) on 1/21/2023 I received an email from Mohela indicating I had a message to review in my account - the letter dated 1/11/2023, set forth an indication that "we have reviewed your request for PSLF . . . your employer certified the dates of employment that were entered in Section 3 . . . the employment end date is before the employment begin date." This seems to be an error when previously Mohela determined that I already qualified for loan forgiveness and looking at my originally submitted forms there is no such error; 3) by my record I cumulatively had over 120 months of qualifying public service and I have not yet received a refund of the excess payments.
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:Service or Repair 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.
Went back to school in 2015 for my masters and graduated in 2016 with my Msw (Loans deferred during my masters program)
Throughout the years my loan provider has changed from ****** *** to ***** ***** and *******. During the summer of last year, I read up on the limited waiver for PSLF, and it said in order to apply for loan forgiveness I’d have to consolidate my loans and agree to have mohela take over as my loan provider so I did exactly that, consolidated and transitioned to mohela. Once I received notification in august that mohela was now my student loan provider I put together my PSLF application and submitted it before the deadline of October 31st, to have the period of time during Covid count towards the 120 required monthly payments. I submitted my PSLF application early October, reflecting 8 and a half years of work with non for profit agencies and just about 9 years of qualifying payments. all thinking that this would mean I’d have about a year left of income based payments in order to have my loans cleared.

Today I get an email from Mohela, reflecting that I only have 3 qualifying payments towards the 120 payments. And I need to make 117 more payments. I have made way more than 3 qualifying payments. As per Biden administration, the Covid time frame is supposed to count towards the qualifying payments whether payments write made or not. Prior to the Covid pandemic I also made YEARS of payments. It is completely unbelievably false that they are saying I only made 3 qualifying payments since August 2022

I would like mohela to reevaluate my case and correct the amount of qualifying payments I have made. It took them over 75 days to process my pslf application only to do it incorrectly. I do not intend on making not one more payment until this is corrected.
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:01/20/2023
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 filed this issue and I spoke to a supervisor She said one thing and now nothing This is ongoing. Now they added fees that wasn't there. I cannot deal with this as I have cancer an cannot function. please help
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:01/20/2023
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.
On January 14, 2023 I contacted MOHELA to discuss an issue with my PSLF ineligible payments as reflected on my payment tracker. After a one hour wait and hearing repetitive and useless information I was finally able to speak to a representative. At that time she took the required basic contact information and I confirmed what they had on file. After that I went on to explain my issue which was in response to a message I received from MOHELA that they claimed they couldn't resolve through email. I explained I felt my ineligible payments should be considered as eligible as I have been under PSLF for almost a decade and I was not in school during the payments they are considering under in school deferment. The lady, whose name wasn't clearly articulated, went on to place me on a series of hold for another hour. She said she couldn't find I was in school during 2015-2016 which I then reiterated that I clearly wasn't and therefore why I was erroneously placed in that status for 12 consecutive months which is something that the PSLF rules of the new program will consider for eligibility. She then went on back and forth placing me on hold claiming she was looking into the issue and speaking to her supervisor about it. After a good while of her nonsense, she then claimed she had to hang up the call because it was taking a while to clear my payments and that her supervisor was claiming it wouldn't reflect right away anyways. I went on to ensure and clarify that I was eligible and what was my confirmation # for the issue to be cleared. She said there was no confirmation # but that it would be reflected in a couple of days but I also needed to submit employment verification to count the ones that hadn't been verified. I stated I would do so and again confirmed that everything was okay to move forward. She said yes and the call was disconnected. I call back 1/20/23 and all information above was not reflected on my record and she lied with what she explained to me. This is unacceptable.
Business Response
Date: 01/24/2023
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
********** ********

I am rejecting this response because: this is a boiler plate response to the issue at hand, I have received messages from MOHELA on my inquiry previously which indicated I had to call to address the issue which resulted in the complaint that was submitted, and this ultimately does not address my concern. I have attached the complaint submitted through StudentAid.Gov which further outlines information not previously able to fit in the allotted space. You have not provided adequate information to address your employees bad customer service and fraudulent behavior by falsifying my record which causes a huge concern on business activities. This is an egregious matter and your response is subpar and insulting.

**********

****** *******
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:01/20/2023
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 have been trying to get ahold of MOHELA, but there is no way to talk to a representative. They send me mail telling me to connect them and have all my information for loan forgiveness, but will not justify their denial, despite my qualifications for the program. No one will answer or reply via email since I have been trying in December 2022.
Business Response
Date: 01/24/2023
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. Please call me at my number or email me regarding

Sincerely,

***********************
Initial Complaint
Date:01/20/2023
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 going back and forth with Mohela loans for over 5 months now. I submitted my PSLF loan application in September. I did everything correct. They reviewed the application wrong and didn’t give me credit for all 10 years in education. They resubmitted it and now they are doing the same thing. Now they are asking me to submit thousands of pay check stubs to verify employment when I’ve already submitted 10 years worth of W2’s. No where in the requirements does it say I have to submit pay check stubs from every district I worked in. The representative on the phone said I could speak to a manager and now I’ve been on hold for over 1 hour. I am 5 weeks pregnant and this is a lot. I went to school, served my community for 10 years and this is what i get in return. I can’t buy a house my family and I because of these loans. I’ve done all I can. I did EVERYTHING right and now they are making up rules and giving me the run around.
Business Response
Date: 01/24/2023
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:01/19/2023
Type:Service or Repair 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.
Mohela is a recent serviced on my Direct Loans through the Department of Education. I have been participating in the Public Interest Loan Forgiveness Program for almost 10 years. Mohela has rejected on of my employer certification forms in bad faith and will not correct the error in a reasonable timeframe. I submitted the form in September and my payment counts have remained the same. Since I have a pending application, Im concerned that my application for forgiveness in March will be prolonged because of their negligence. I need follow-up on my pending form.
Business Response
Date: 01/22/2023
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: 01/27/2023
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:01/19/2023
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 have filed over a year ago for public loan forgiveness with no answer on the status of my application with Mohela. I have worked fulltime as a registered nurse since 2006 and have paid over 120 qualifying payments and submitted all of this to them. I have called them multiple times to find out status and they can only tell me to wait it out and I likely meet criteria for forgiveness. Please help!
Business Response
Date: 01/22/2023
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: 01/23/2023
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:01/19/2023
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.
Following an initial delay, FedLoan Servicing had nearly handled the processing of my ****** (after an error was found on their part with the entering of my previous employer's EIN). The person with whom I spoke was going to escalate my case to their supervisor, as my employer was clearly a qualifying employer for ******.

Shortly thereafter my loan was transferred to MOHELA. Despite the number of times I've tried to call (sometimes waiting on hold for 2+ hours) and email, I've received no response to my ******/employment verification submitted for my first employer (2003-2012). This would have first been sent to them by FedLoan Servicing. Due to their lack of response, I even resubmitted the form in 10/2022 as I wanted to be sure it was received before the application deadline. Though I can view my form in their system, I have yet to receive a response from MOHELA.

This ****** application was first submitted in Dec 2020/Jan 2021. There is absolutely no reason that this shouldn't be processed at this point. MOHELA quotes 90 days - and granted, they haven't had the loan for the whole time - but it's been far longer than 90 days at this point. They're being paid by the government to adequately staff this program (******) and process the requests in a timely fashion. I'm simply asking that they do their job.
Business Response
Date: 01/22/2023
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: 01/23/2023
Complaint: ********

I am rejecting this response because:
I do not know how (or if) MOHELA will respond. I am not comfortable accepting the response until I have additional, more specific information.

**********

******** ******
Business Response
Date: 02/08/2023
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.
Business Response
Date: 10/20/2023
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. Financial privacy
laws prevent MOHELA from providing your office with borrower-specific
information, or any specific information regarding MOHELA's response to the
complainant. If, however, your office receives further communication from the
complainant regarding this matter, please do not hesitate to contact MOHELA
directly.
Initial Complaint
Date:01/19/2023
Type:Billing 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.
Prior to 2022, ********* was my servicer. I spoke with them (Agent ID ******) in April 2022 and confirmed I would need to continue to pay my current monthly amount through January 2023, I would need to recertify then, and as of January 2023 would have 163 remaining payments until forgiveness of all loans.

On 2 November 2022, I spoke with ******* ******* ** *****. She confirmed my entire account, which includes both FFELP and Direct Loans, was on track for forgiveness in April 2034; at that time the IDR Counters would: review my account, confirm I had submitted all necessary payments to qualify for forgiveness, and process the forgiveness of my remaining debt at that time.

On January 19, 2023, I spoke with ****** ******* ** *****), who stated my Direct Loans were under a 20 year plan and my FFELP loans were on a 25 year payment plan. I advised this was not the case. I requested an escalation to a supervisor and spoke with **** ******* ** *****. She reiterated ******'s statements. I referred to my personal notes regarding my November 2022 call with *******, and **** advised the agent’s notes indicated a payment term of “20 or 25 years” for my loans. I asked that the call itself be reviewed so Mohela could confirm they provided confirmation my IBR term would end in April 2034 with forgiveness of my loans. **** advised Mohela had no obligation to honor that statement.

**** referred me to the Dept of Education to apply for IDR Account Adjustment. She reiterated several times that the 25 year term for FFELP was determined not by Mohela but by the Department of Education. I called the Department of Education; when I advised I had been guaranteed the 20 year plan for all loans in 2014 and received confirmation from both ********* and Mohela in 2022 this was the case, I asked if changing it to 25 years would constitute a breach of contract on Mohela’s part, I was advised to submit an official complaint. I was advised it was Mohela's policy regarding terms, not ED's.
Business Response
Date: 01/22/2023
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: 01/23/2023
Complaint: ********

I am rejecting this response because: the response is insufficient. They appear to have replied to advise that they will continue to research my complaint in order to satisfy the BBB's timeline without addressing my complaint directly. This does nothing to resolve my issue or the efficiency of resolution. I would ask that the BBB consider this matter still open and that the time to resolve be reset to the date of my initial complaint so that there is an accurate timeline of resolution and so that any and all punitive measures that the BBB is able to enforce (or notify the public about) are exercised. I have reached out to the Texas Rio Grande Legal Aid organization to speak with someone about engaging a lawyer so as to ensure that all my legal options are reviewed.
I am asking for very little. I am not asking for the discharge of my loans at this time. I am not asking not to repay my loans. I am not asking for anything that, according to the office of Federal Student Aid, is not within the power of this servicer to perform. The transfer of my debt from ********* to Mohela does not allow Mohela to change the terms of my debt relief. All that I am asking is that the organization uphold my contract and provide that, once I have completed making the 240 requisite Income Based/Driver Repayment plan payments, my forgiveness be enacted for all loans (in April of 2034), and that they cease providing false statements that my FFELP loans are on a plan ending in April of 2039. This is not and has never been the case, and I will fight this with every legal avenue available to me. That is the only acceptable resolution. I expect this to be resolved and a letter to this effect to be mailed to me as soon as possible to prevent the further waste of my time as well as that of the servicer.

Sincerely,

**** *******
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: 01/29/2023
Complaint: ********

I am rejecting this response because:
I was advised that I would receive a call back (not written correspondence, although as a resolution of this issue I do expect, in writing, a letter confirming the payment plan that I am on of all loans, direct and FFELP, terminates with the final payment in April 2034--I don't even expect an apology for providing me false information over the phone and for attempting to scam me, I don't expect that level of humanity and humility) from the next level of management within one week of my conversation with **** on 01/19. This has not occurred and no attempts have been made to resolve this issue. I was to expect a call no later than 01/26, but I will continue to escalate as needed until a response is received. I expect to hear from Liza's direct supervisor no later than 5 PM CT 01/30, which is a gracious extension on my part of the time frame originally provided by Mohela.

Sincerely,

**** *******

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MOHELA is NOT a BBB Accredited Business.