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:03/26/2025
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.
Mohela is a my loan servicer for the Department of Education. Over 3 years ago, I filed an application for Public student loan forgiveness. During the 3 year process a few of my loans have been discharged however my last direct student load was in the process of being discharged and my loan was placed in forbearance. While my loan was in forbearance, I continued to receive payment requests from Mohela from 4/2023-4/2024 for which I continued to make payments on my loan during this time. On August 28, 2024 I called Mohela, where one of the representatives informed me that I had a $3, ****** credit which would take approx. 5-10 business days to process. Seven months have since passed and I placed numerous called to Mohela inquiring about my account credit. Each call I make, I have over 1.5-2.5 hrs wait before reaching any representative. I am never able to obtain any information pertaining to my credit and the information I do receive is often conflicting. I am always told my credit is being processed by a "Resolution Supervisor". When transferred to a "resolution supervisor" the call is almost always dropped or I am told I have to wait a ***** day period for processing/any additional information. I called the Department of Education for more direction/instruction, who direct me back to Mohela.
Business Response
Date: 03/27/2025
MOHELA has received this customers inquiry. Please be advised that ********************** 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:03/26/2025
Type:Billing Issues
Status:
UnresolvedMore 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 did not remember signing up for federal student loans and after one year of college I went to serve our country in the United States ************. I served honorably for 5 years and several months after I got out I started recieving mail coming to my mothers house from Mohela. I did not recognize this company at all so I figured it was spam and threw it away. A couple months later I get ready to buy a house and put an offer in after already being preapproved months before and come to find out my credit is completely ruined from 2 accounts I somehow had with Mohela. After trying to call numerous times, waiting on hold for at least 12 hours all together, and connecting with them once, I finally was able to get enough information and actually make an account with them to see my loan balance. I called again to try and work out a deal where if I paid them off in full at once they will remove the delinquencies from my credit report. That is when I was spoken to very rudely and basically trash talked by 2 different supervisors there saying that Im going to do what they want because I have to pretty much. I am a disabled veteran and would never expect to be treated in such a way especially over an account I had no idea existed and didnt even receive a phone call or email from them. Even after I paid them off in full and called them back requesting a document saying that I paid them off and the account is closed to be emailed to me they refused and said they will only mail me a letter saying that. This company is absolutely atrocious dealing with others money and credit this way
Business Response
Date: 03/27/2025
MOHELA has received this customers inquiry. Please be advised that ********************** 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: 04/07/2025
They have not reached out to me as promised. I didn't respond to this complaint because I thought they were reaching out via paper mail. I would like this re-opened. I also deny their response to clarify.
Business Response
Date: 04/08/2025
MOHELA has received this customers inquiry. Please be advised that ********************** 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.

A Note to Our Customer: ********************** will respond to your concerns directly by sending the letter through your online portal or to the mailing address on file within 5 business days. We appreciate your patience as we research your account.
Initial Complaint
Date:03/26/2025
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 am disputing an invalid account reported by **********************/ DOFED on my credit report. This account is inaccurate, unverified, and violates the Fair Credit Reporting Act (FCRA). Since it does not meet the legal standards for reporting, I request its immediate removal. If the furnisher cannot provide proper validation, it must be deleted per federal law.
Business Response
Date: 03/27/2025
MOHELA has received this customers inquiry. Please be advised that ********************** 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:03/25/2025
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.
My loans were originally with ***********. My loans were on a forbearance with ***********. The loans were consolidated by MOHELA. MOHELA placed a forbearance on my loans 12/21/2024. Then reported a 90 day delinquency on my loans 3 days after to my credit bureau. My loans were suppose to be on a forbearance. Paperwork states I will receive a letter when forbearance was over. MOHELA is impossible to get ahold of, it has 5+ hours wait times when calling in!!!! Ruin peoples credit but impossible to reach!!
Business Response
Date: 03/26/2025
MOHELA has received this customers inquiry. Please be advised that ********************** 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:03/25/2025
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 made a payment to pay the full amount of my student loan. It was drafted from my bank account on Feb *********. I thought great paid; done; dont have to think about it again. I receive a call in March 2025 asking to pay the amount once again. The lady on the phone could see the payment and stated it was never applied to the account and attempted to help me. I was on the phone for 2 hours. She stated that she has to transfer me to a supervisor. Upon transferring me it states that I will have to wait on hold once again and then hangs up. I attempt to call back and wait on hold for 2 hours till well there office is now closed. Called the next morning and waited on hold for 3 hours to get another individual who was going to transfer me to the supervisor and it hangs up again once transferred and the recording states I would be waiting on hold once again. I should not have to continuously wait on hold over and over only to get hung up on and no resolution. This is a waste of my time when I paid the amount in full
Business Response
Date: 03/26/2025
MOHELA has received this customers inquiry. Please be advised that ********************** 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: 03/26/2025
Complaint: 23113945

I have reviewed the business' response and am rejecting it because:
This is an automated response from MOHELA for one. Its not rocket science to look at the bank statement showing money going Mohela and then realize the account was paid.
it also does not take 4 hour waiting on hold to reach people at mohela. There is just not enough people in the world calling you everyday

Sincerely,

****** ******
Business Response
Date: 03/26/2025
MOHELA has received this customers inquiry. Please be advised that ********************** 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: 03/27/2025
Complaint: 23113945

I have reviewed the business' response and am rejecting it because:
I have called for three days straight trying to again resolve this issue in a timely fashion only to be placed on hold for over 4 hours at a time multiple times per day. When I finally reach someone they have to transfer me to a supervisor. As soon as they transfer the call it goes through a 30 sec speech and then hangs up. Since this request not once has MOHELA reached out to me. I am patiently waiting by my phone. Not once has it rang and been MOHELA. I have submitted documentation showing it money was withdrawn from my account on 2/20/25. The payment was made by phone on 2/19/25. Where has my money gone ?

Sincerely,

****** ******
Initial Complaint
Date:03/25/2025
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 have tried several times to get in contact with customer service at **********************. Wait times have been up to four hours without a call back option. when I try to log on to the system its telling me my login information such as my birthdate and Social Security number are incorrect. I am unable to get anyone on the phone or get any help at all. It has been going on three months now where I was not able toget assistance.
Business Response
Date: 03/26/2025
MOHELA has received this customers inquiry. Please be advised that ********************** 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:03/24/2025
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 called MOHELA today multiple times to resolve this issue and was on hold for 4 hours after i called a second time. I spoke with a ***** and a " *****" i told them both i needed the credit reporting department and both calls were disconnected after a total of 6.5hours holding.All of my MOHELA accounts are paid off and have been since 2017. Considering Experian is going thru a billion dollar lawsuit right now for furnishing old accounts. I NEED THEM TO BE REMOVED FROM MY TRANSUNION,and EXPERIAN ACCOUNTS. My attachments show MOHELA verifying the accounts in November 2024. When your reporting 4 accounts on Experian and 3 accounts on ********** and 0 on Equifax.. This is nowhere *********** has been well over 7 years as per your policy to report. PLEASE REMOVE TRADELINE As per the *** 15 USC 1681B states you cannot furnish an account without my consent.Attached are my Annual Credit Reports showing MOHELAs still reporting as open accounts.
Business Response
Date: 03/25/2025
MOHELA has received this customers inquiry. Please be advised that ********************** 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: 03/28/2025
Complaint: 23111030

I have reviewed the business' response and am rejecting it because:
I don't need financial documents. i am 100 disabled veteran my loan is discharged. i simply need this tradeline removed off my credit profile. its been well over its date to be removed according to your policy on credit reporting.

AS PER 15 USC 1681 B STOP REPORTING AND REMOVE TRADE LINE.

Sincerely,

********* ********
Business Response
Date: 03/28/2025
MOHELA has received this customers inquiry. Please be advised that ********************** 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: 04/02/2025
Complaint: 23111030

I have reviewed the business' response and am rejecting it because:
Please see attachment from my initial complaint. I spoke with an "*****" and a ***** in attempts to resolve this issue on 3/24/2025. Not only was i on hold for 4 hours but got disconnected twice both times i called . The first hold time was 2hrs 18mins.
All of my MOHELA accounts are "paid off" Im requesting MOHELA stop reporting these accounts as "Open still being paid" AND REMOVE MOHELA TRADELINE. 4 accounts are reporting on Experian and 3 on Transunion 0 on Equifax. This is inaccurate as well as expired its been well over 7-10 years that your policy states to report to CRAs.
Considering Experian is going thru a billion dollar lawsuit right now for furnishing old accounts. I NEED ************************* BE REMOVED FROM MY TRANSUNION, and EXPERIAN ACCOUNTS. This is a violation of the law. This is affecting my livelihood.
15 U.S.C 1681: The banking system is dependent upon fair and accurate credit reporting. Inaccurate credit reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the public confidence which is essential to the continued functioning of the banking system.
15 U.S.C. 1681s-2 (A)(1): A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate.
Id prefer being told anything about my account thru this portal. considering the lack of communication via phone. ATTACHED IN INITIAL COMPLAINT ARE MY ACCOUNT NUMBERS. last 4 ******
Sincerely,

********* ********
Initial Complaint
Date:03/24/2025
Type:Billing 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 was approved for my Borrower Defense Case under #: ********, apparently not all of my loans were discharged and the remaining loans were handled by Mohela. I called Mohela in Oct 2024, stating I was challenging the remaining loans which should have also been discharged, and was told by a customer service representative that my loans were be put into administrative forebearance and NOT reported to the credit bureau while I was disputing this. On Feb 2025, Mohela reported my loans to the credit bureau and my credit score dropped from 817 to 663 as a result of $260. I called Mohela today and was basically told there was nothing they could do. This goes against what I was told in Oct 2024, by their representative and I believe it is disgraceful and should be corrected immediately.
Business Response
Date: 03/27/2025
MOHELA has received this customers inquiry. Please be advised that ********************** 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: 03/27/2025
Better Business Bureau:

I have reviewed the business' response regarding complaint ID ******** and am satisfied with this resolution.

Sincerely,

****** ************
Initial Complaint
Date:03/24/2025
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.
Im being put in Litigation by MOHELA , Mrs. ****** from MOHELA asked me if I received anything about Litigation and I havent as of March 24, 2025. Im on the phone with CFPB to issue another complaint, the person Im on the phone with is named *****. Im am at my wits end and not sure whom to speak with or who can help.
Business Response
Date: 03/25/2025
MOHELA has received this customers inquiry. Please be advised that ********************** 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:03/24/2025
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.
The issue I have been trying to resolve (for over a year) is a missing payment I made to Mohela for the amount of $1,100.00. There is no record of this payment on my Mohela student loan account. I've called ********************** directly over a dozen times and uploaded a bank statement that shows I paid $1,100.00 on 01/11/2024. I've spoken to several supervisors with no resolution. I've spent countless hours on hold. Yet, I have been unsuccessful in reaching someone competent enough to understand or fix my problem, which I have repeatedly explained over and over again. Representatives have speculated that the problem originated because Mohela was transitioning to a new servicer platform at the time I made the payment. I have been given false assurances that Mohela's accounting department will locate the missing payment, and confirm that the money was received and put toward the total balance of my student loans. I have also been told that a tech department will update my account online to show a record of the payment. Multiple supervisors told me that the accounting department would send documentation in the mail within 7-10 business days. Now, over a year later, Mohela has failed to do anything as promised. As far as I know, my money is entirely missing. Below is a detailed overview of what I did in January of 2024.On January 11, 2024, I paid $1,100.00 from my checking account to **********************/Department of Education toward a student loan. Beforehand, I had received a loan disbursement of $2,128.00 on January 04, 2024. Upon receiving this disbursement, I canceled $1,111.00 in the student loan portal through my university account because it was extra money I didn't need for tuition. A week later, I made a separate payment from my bank account for $1,100.00. I have a record of this payment from my bank. It is a separate payment from the loan cancelation amount of $1,111.00 on January 4th.
Business Response
Date: 03/25/2025
MOHELA has received this customers inquiry. Please be advised that ********************** 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: 03/26/2025
Complaint: 23109140

I have reviewed the business' response and am rejecting it because:

Mohela does not provide a specific time frame or date for when they will review my complaint and contact me, nor does it say how they will contact me but suggests by mail. This response is reminiscent of the same false promises made after endless hours on hold and speaking with representatives. I would like a concrete answer as to when and how Mohela will contact me. Secondly, this response reads like an automated message, it does not address my specific problem or demonstrate comprehension of what I need.

Sincerely,

**** ******
Business Response
Date: 03/27/2025
MOHELA has received this customers inquiry. Please be advised that ********************** 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.

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MOHELA is NOT a BBB Accredited Business.