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:01/12/2023
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 employed by a federal agency since 2015.My PSLF account was previously held by ********.Employer Certifications were submitted and all qualifying payments were accurate.

My account was transferred to Mohela around June/July of 2022.As of 01/12/2023,my qualifying payments have not been updated .An employer certification was submitted and stamped as processed without any additional payments being documented.

A representative was contacted to request another payment count.The representative stated that the payments were reflected. I then informed her that the payments were qualified by ******* and no additional payments were counted for the recertification that was submitted to Mohela. She then stated the payments were "overlooked " and would require an additional 30 business days for review.

The company does not have knowledgeable staff in regards to PSLF and should have their contract removed.The timeframes and lack of attention to federal accounts is absurd!
Business Response
Date: 01/16/2023
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:01/12/2023
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 in July of 2022. I was eligible for PSLF in June of 2022 having reached 120 payments. Mohela has "recount" my payments incorrectly, missing 25 payments in one block, plus several others. As of today I have 127 qualifying payments however, Mohela continues to have my total incorrect. I have spoken to Customer Service so many times that I've lost count. Each time they admit that the count is incorrect and allege to send it to "REVIEW". I was told I would see the count completed in October, then November, then by "the end of 2022", then in February and most recently I was told that I would see the updated count and have the loans sent for discharge by March. Customer service rep added the caveat that should they not be discharged by then I should call back and say the following direct quote "I want to speak to a manager", leading me to believe that discharge by March could fail to occur. Since they have done the initial incorrect count there has been no change to my account in response to my numerous inquiries. Again, I am 7 months past my PSLF total of 120 qualifying payments.

As a result, I have turned down 2 private sector jobs for fear of the loan not being discharged and I am still carrying that loan on my credit report which affected an application for a home equity loan for which I was recently a co-applicant.
Business Response
Date: 01/16/2023
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.
Customer Answer
Date: 01/20/2023
********** ********

I am rejecting this response because: the company failed to address the missing 25 payments under the federal forbearance which count for EVERYONE who qualifies by employer toward PSLF forgiveness.

Sincerely,

***** ****
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:01/12/2023
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.
Mohela took over the servicing of my student loan between July and September of 2022. At that time, they said that they would have all of the documentation by September from Fedloan to process my PSLF applicattion, which had been submitted in June 2022. However, when I spoke to someone in September, they said that I needed to resubmit, and they said that they needed my employer I, whch was submitted to Fedloan on August 9, 2022. Mohela did finally admit that they had the employee ID, but said that they needed another 60 to 90 days to process the application. On October 11, 2022, I received a letter that my PSLF application was approved, but there was only one payment applied. When I called within the next week to inquire, they said that my payment count would be updated within 20 days. When I called back 30 days later, they said that they would actually need to whole 90 days from the September 17, 2022 date, and that everything would be completed by Decemeber 15, 2022. When I called back on December 19, 2022, because nothing had been updated, the representative stated that an egregious error had been made and that she would open up a case for me because nothing had been done on my account or application at all - including the automatic update to the payment count that should be occurring each month. Then she say that they would need another 90 days to address the issue. I think that it is absolutely ridiculous that this has taken so long. I already waited over 6 months and they want for me to wait another 3 months for them to reprocess my application. This seems to be a recurring theme for this company. They knew that people had applied for ************** Loan Forgivenesss when they took on these accounts, but it seems as though they are using delays and other subterfuge so that they can keep borrowers in loans that should be forgiven.
Business Response
Date: 01/16/2023
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. 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.
Customer Answer
Date: 01/17/2023
Complaint: 18727876

I am rejecting this response because:
It is in essence a non-answer. They have not expedited the handling of my application. They are still saying that my payment count is 1, and basically saying that they are going to continue to move on the same slow trajectory while I have to continue to wait. If nothing else, the payment count should have been updated to reflect the time that my loan has been in consolidation with the Department of Education. They are just saying "keep waiting and we will get to it whenever we get to it. That is disrespectful considering the amount of time I have already been waiting.

Sincerely,

*************************
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:01/11/2023
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.
In May of 2022, I filled out the Public Service Loan Application and per directions sent it to ********. My loans were then transferred to Mohela. In July, I uploaded my forms into the Mohela database. After 60 days, I noticed a payment tracker to keep track of payments toward forgiveness. At the beginning of November that payment tracker was taken down. I talked with several people about why this would disappear and was told to talk to a supervisor. I waited on hold for 6hrs to finally reach a supervisor. After 6hrs I was told that everything looked good with my loans and PSLF forms. Now nearly 60 days later, there has been no payment tracker and no movement toward knowing if my loans are going to get discharged. When I check on my PSLF status is says processing. It has said processed or processing since I uploaded my forms in July. I am trying to be patient but there have been many people that have uploaded forms months after I did that have already found out their loans have been discharged. It appears that there is no rhyme, order or reason to whom they pick to receive forgiveness. It is like getting your winning lottery numbers drawn. There should be a fist come first serve protocol to processing PSLF paperwork. I was told to wait 90 days from when my forms were uploaded it has now been over 7 months which is nearly 200 days.
The resolution I am wishing to receive is for my forms to be processed in the order that they were received. People who have submitted their paperwork after me should not be serviced first. Because this process is taking so long, my life is left in limbo. I cannot accept other jobs unless I know that my loans are being discharged. I have been in public education since 2007 and worked for my current school district since 2011. I am not sure why this process is taking so long. It has been frustrating and heart-wrenching particularly when others who applied after me have already heard back.
Business Response
Date: 01/13/2023
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:01/11/2023
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.
I have a student loan with Mohela/**** for which I pay an agreed amount each month in which interest is taken out. Mohela/**** had a principal only option for additional payments until December 1 2022. As a customer I was not told of this change, and recently sent two additional payments in which almost 1/3 of the additional payment I made was put into interest! Since I was not informed I feel that my additional payments should be for principal only.
Business Response
Date: 01/13/2023
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:01/11/2023
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.
During the federal student loan pause my student loans, which are not delinquent, were transferred from Aidvantage to Mohela. Due to the transfer, my credit score has dropped by 67 points. The transfer is something that occurred out of my control and I am being penalized for it. This needs to be corrected.
Business Response
Date: 01/13/2023
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.
Customer Answer
Date: 01/22/2023
********** ********

I am rejecting this response because:

This does not explain nor does it give any direct contact information for who and which department to reach out to regarding my concern. They also sent me a letter via email insisting that using ****** ***** is the reason for the inaccuracies however, I received notification from ********** *** ******** ******* which also reported the 67 point drop in my credit score solely because of this “new account”.

**********

****** *******
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:01/10/2023
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 provided a loan consolidation on 9/15/22. On 10/13/22 I received my PSLF calculation under Mohela, and they incorrectly calculated my qualifying payments. Instead of the 70+ qualifying payments I have made since being with my qualified employer since 9/3/2015, they calculated the payments from the time of consolidation with Mohela as 1 payment only. I have attempted to contact them to fix this error many times. I sent two emails through Mohela's site. The last was on 12/20/22. Each time I get a response weeks later telling me to call their line for assistance. I've called many times and am unable to get through to a human being. Either the system puts me in a continuous automated loop of options or I am told they are too busy to speak to me and to submit through their site. It has become impossible to get this very serious and costly issue resolved. Their error accounts for 7 years of payments that they miscalculated.
Business Response
Date: 01/13/2023
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:01/10/2023
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 *** **** in June 2022. I was in the process of meeting the 120 with documents that were submitted to get my loans forgiven through public service program. I am given different reasons every time as to what is taking so long. They promise 90 days and it has been over 6 months. On January 9, 2022 I was on hold for 3.5 hours and they said they would escalate it to a supervisor. Every time I speak to someone they say wait longer. I meet the criteria laid out in the program. I have 51 on record and had 62 at *** **** Servicing when it was transferred to MOHELA. As you can see by uploaded screenshots I have 142 eligible payments and need to provide up to 58-69 more to meet the 120 in employment verification. The packet that included the other 58-69 was uploaded on 7/8/2022-7/21/2022. Again on 8/8/2022--8/9/2022. Again on 9/1/2022. Again on 10/7/2022. Again on 12/1/2022. I have been told all forms look okay and just a waiting game. I know someone that submitted her employment forms to MOHELA in late October 2022 and just received forgiveness letter. All I get is the runaround. Long hold times, different story every time I call. I meet the criteria. I have provided evidence to show they aren't approving documents and forgiveness per federal policy guidelines. If they couldn't handle the work load they should have left the loans with ******* servicing. At least with ******** they were processing so they could haver the loans forgiven. Over 6 months is way too long to wait for documents to be processed when MOHELA promotes 10 business days, but at most 90. Lets try over 180.
Business Response
Date: 01/13/2023
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.
Customer Answer
Date: 01/13/2023
Complaint: ********

I am rejecting this response because:

They did not reach out by phone and speak with me. I do not want it in writing

Sincerely,

***** ********
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:mohela reached out still has not properly evaluated two of my submissions. They took over my loan from ******* servicing but didn’t get all documentation from them. Now ******* no longer exists so the pslf form that was submitted for department of children and families never was processed. Mohela says it is my problem and not theirs. It is hard to get the form filled out by *** so for them to not get it from ******* servicing is wrong. I need the 8 months at that employer to reach the 120 without it I never will. Also they have Orange County schools information for 3 months including w-2 from tax return and they refuse to give me credit for those.

Sincerely,

***** ********
Initial Complaint
Date:01/08/2023
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.
I have never had student loans with this company. My students loans were forgiven due to fraudulent issues with *** ********* ***********. I received a letter of student loan forgiveness after *** Bankruptcy. A few weeks later I received a notification on my credit for 46,000 for student loans and I have never applied and never given constant to run my credit or apply for this loan. I contacted them several times with a letter I received from the head of student loans stating my *** debt was forgiven due to their bankruptcy and fraud on students and asked why my credit was ran. I need this off my credit immediately. This company is fraudulent.
Business Response
Date: 01/13/2023
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.
Customer Answer
Date: 01/13/2023
Complaint: ********

I am rejecting this response because: First and foremost I am not a borrower I consent for you to explain why my information was fraudulent used and who the 40,000 dollars went too? I did not sign nor agree to any student loans. I need this off my credit report immediately.

Sincerely,

******* ******

****
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:

This company is so fraudulent. I have not received no communication from the company to delete the fraudulent account off of my credit. I am just applaud that this company would open a loan in my name without my consent or even heck a submitted application. I want this company to remove this immediately from my name and credit.

Sincerely,

******* ******
Initial Complaint
Date:01/07/2023
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 declined my application for PSLF despite me having over the qualifying amount of payments claiming I don't work at my employer anymore. I do which is clear on my paperwork submitted. They never responded to multiple inquiries I made when logged into my account and are completely unreachable via phone to discuss and correct this issue. So many people are having similar issues- it's fraud
Business Response
Date: 01/13/2023
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.
Customer Answer
Date: 01/13/2023
Complaint: ********

I am rejecting this response because:

I appreciate it is marked as forgiven but the date needs to be amended- it states the year of 3018.

Sincerely,

***** ********
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.

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MOHELA is NOT a BBB Accredited Business.