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

4,028 total complaints in the last 3 years.
1,410 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:06/05/2025
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.
Mohela is my loan servicer and is making it impossible to get back into standard repayment to pay my loans. I had to go through a **** complaint to even getting them to give me the 60 day processing forbearance after many months of the run around. I believe they are intentionally creating obstacles in order to keep as many loans active as possible, I am two months away from forgiveness and since last fall it has been impossible to make further payments to get to the 120 I need for forgiveness after working in public service for more than 10 years now. In December, I applied to get out of SAVE forbearance and into an income driven plan, there has been zero movement on that, so two months ago I informed them to put me in standard (level) repayment and to cancel the old application. They told me it could be 90 business days. In the last couple of weeks there was movement, I received notification 6/3 I was approved to be in standard repayment, there was a bill due on my account which I promptly paid. I was so relieved. Then today, 6/5 - I receive a letter dated 6/4, saying they put me BACK into forbearance! without my permission, and now will tell me it'll be another 90 days I'm sure to get out of it again- the internet is full of similar stories of this exact shady business practice. I don't even know if this payment will now count towards my 120 payments, which is no fault of my own. Please help me pay my student loans, I just want to pay my loans. There is no injunction preventing me from going into standard repayment.
Business Response
Date: 06/06/2025
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.
Customer Answer
Date: 06/15/2025
Better Business Bureau:

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

Sincerely,

******** ******
Initial Complaint
Date:06/05/2025
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.
Current loan is under SAVE forbearance. During the current litigation all loans should be not accruing interest, 0%. My loan servicer, MOHELA, is not adhering to this provision and guideline by *** and my current loans are accruing interest. MOHELA representatives are unable to provide any answers about why this is happening. They are claiming my loans are in a "RARE SITUATION" where it is accruing interest and there is nothing they will do to change or ensure my loans fall under the policies of 0% interest.
Business Response
Date: 06/06/2025
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:06/05/2025
Type:Product 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 the servicer of student loans I took out through the ******************* Under the ************** Loan Forgiveness program, I was given notice on January 3, 2025 that my loans were forgiven. The letter also indicated where I had overpaid and was owed a refund. I spoke to Mohela in February 2025 and they told me I would receive a refund within 90 days into the bank account through direct deposit. At the end of May 2025, I still had not received the refund. I called Mohela and was told a check was mailed on May 1, 2025. I confirmed the address they had on file, and it was correct. I never received the check. I was told that I have to speak to someone from their "advanced" team. However, I have remained on hold for hours at a time, unable to speak to anyone.
Business Response
Date: 06/06/2025
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.
Customer Answer
Date: 06/09/2025
Better Business Bureau:

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

Sincerely,

******** *****
Initial Complaint
Date:06/04/2025
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 recently called MOHELA's customer service and spoke with one of *********************** customer service representatives, *****, on Tuesday, June 3, 2025, at around 3:00 PM. I explained to her that I am supposed to be under the SAVE forbearance due to the federal court injunction on the *************** of Education which prevents the Department of Education from implementing the SAVE Plan. I received a notice from MOHELA on August 16, 2024, that stated:"While you are in this forbearance no payment is required on your account and your interest rate will be set to 0%. This means no interest will accrue while you are in the forbearance."My last account ************************ on July 14, 2024, showed a total balance of $96,144.90. However, when I checked recently, I noticed that my total balance was $99,546.76. Furthermore, when I checked my loan details my loans were incorrectly set at their normal interest rates and not set at the correct 0% interest rate. I verified with ***** who told me that my loans were accruing interest despite the notice I received from MOHELA on August 16, 2024.***** checked with her lead and said she needed to submit a different type of forbearance for it to be reviewed. She told me that she submitted a request to ******************* (***) to switch my forbearance to the SAVE forbearance. She told me that *** will review the application and that it will take up to 90 days to get a response.I asked her what will happen with the erroneous interest that has accrued on my loans despite the fact that I was supposed to have my interest rate set to 0% since August 2024. She told me that *** will review the application that she sent in and will apply the SAVE forbearance retroactively (meaning that the interest accrued should be null and void) and that MOHELA could not do anything until then. I asked her for a copy of the application she submitted with *** but she refused.
Business Response
Date: 06/05/2025
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.
Customer Answer
Date: 06/14/2025
Better Business Bureau:

I have reviewed the business' response regarding complaint ID ******** and am satisfied with this resolution. Thank you so much! It was resolved swiftly thanks to your swift response. I appreciate the work that you all do.

Best regards,
**** ********
Initial Complaint
Date:06/04/2025
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.
In February 2024, Mohela notified me I owed money on my student loans. I made the payment but later found out it was not required and resulted in an overpayment. When I contacted them about my refund, they told me that I needed to contact the Department of Education, which in return told me Mohela was in charge of refunding me. I experience this back and forth for over a year, until someone at Mohela admitted it was them that should be processing my refund and that there is a notation on my account noting that I am owed money but no one ever moved on it. I have been waiting for over a year for them to refund my money.
Business Response
Date: 06/05/2025
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.
Customer Answer
Date: 06/17/2025
I did not respond to the BBB correspondence because I was waiting to receive Mohela's written response to my concern in the mail. TO DATE, they have failed to resolve my issue. My account has been under review for a refund since the beginning of this year. I am not asking them to release my personal information to the BBB. What I am simply asking them to do it actually give me my refund, which they have had in their possession since July 2024.
Business Response
Date: 06/17/2025
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:06/04/2025
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.
As part of my employment with the **************, I received partial student loan repayment. Payments were processed correctly for the first two years of my employment from 08/28/2021 - 08/26/2023. However, beginning 09/23/2023, MOHELA did not report payments made on my behalf by the *************. This continued until 05/04/2024 when they began to report payments again. I have records from my employer showing these payments were made, but MOHELA has never acknowledged or found these payments. I have contacted them through their messaging system and by phone many times to no avail. Every time they told me "payment research" would occur and that someone would reach back out to me, but this never happened. The total of missing payments is approximately $1200. This missing balance has been accruing interest this whole time. I had not reported to the BBB previously as I didn't know that was an option and assumed contacting MOHELA directly would fix the issue.
Business Response
Date: 06/05/2025
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.
Customer Answer
Date: 06/15/2025
Complaint: 23418912

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

It has been more than 5 business days and I not received a digital message in their portal or anything written via mail. Meanwhile, I am still having to make payments

Sincerely,

****** ******
Business Response
Date: 06/16/2025
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:06/04/2025
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.
DEBT VALIDATION REQUEST **** ****** P.O. ****************************************************** Mohela P.O. ************************************ 18773-9533 To Whom It May Concern:I, **** ******, a federally protected consumer, am exercising my rights under 15 U.S.C. 1692g of the Fair Debt Collection Practices Act. I am formally requesting validation of the alleged debt you claim I owe. I am not refusing to pay, but I request full verification of this debt, including the name of the original creditor and documentation proving my ************* advised that any unvalidated reporting to credit bureaus may constitute a violation of both federal and state laws and could be considered fraudulent. Under the ****** all collection activity must cease immediately until you provide the required validation. This includes all communication and reporting related to this debt.If you do not provide proper validation within 30 days, I will consider this matter resolved and demand removal from all credit records. A Cease and Desist order is also in effect as of the date of this letter.Per 15 U.S.C. 1692g, within five days of initial communication, a debt collector must provide:The amount of the debt;The name of the creditor;A notice that the debt is assumed valid unless disputed within 30 days;A statement that, if disputed in writing, verification or judgment must be mailed;A statement that upon request, the name and address of the original creditor will be provided.Thank you for your cooperation.Sincerely,**** ****** ****** Without prejudice, all natural rights reserved
Business Response
Date: 06/05/2025
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:06/04/2025
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.
My joint spousal consolidation loan (2821772527-9) was separated and consolidated into new loans on 3/24/25 by **********. New loans were dispursed and Mohela is servicing one of them (2395613417-1) . The old loan in question should be paid off and updated on Mohela's site. It has not been updated and the forbearance on that loan has expired. They now want payment on it by 7/7/25. They need to update their records and close out this loan. Until they can do this, the forbearance needs to be extended. I will not pay on a loan that should not exist. They have essentially doubled my loan amount. I have attached the separation notice sent by ********** to prove these loans are separated.
Business Response
Date: 06/05/2025
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.
Customer Answer
Date: 06/11/2025
Complaint: 23417570

I have reviewed the business' response and am rejecting it because:
In the letter you sent me you state the underlying loan that was separated and consolidated was paid off. IT WAS NOT. The loan # in question is 2821772527-9. That loan currently has a payment due in July of 2025 in the amount of $367.13. You are referencing the wrong loan number. I am well aware that I am responsible for payment on the new loan and that it is currently in forbearance. I need Loan # 2821772527-9 (which you service) paid off as it was supposed to be and show no payment due.

Sincerely,

******* *******
Business Response
Date: 06/11/2025
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:06/04/2025
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.
March ************************************ my name by Mohela. I was not the one who took out the loan. **** leaked my ss and name. I filed a police report, reported to Mohela, student *******, attorney General for oh, SS office, BBB, *** and credit agencies in May 2024. Now Mohela will not respond to me or student *******. They have sent the account to collections and it is impacting my credit. It will soon go to garnishment and that is not okay. This is fraud and Mohela should no longer be able to issue loans. I also have read that Mohela has a case against them for opening fraudulent loans themselves
Business Response
Date: 06/05/2025
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:06/03/2025
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 am filing this complaint against MOHELA due to their failure to issue a promised refund for an overpayment on my student loan. After identifying the overpayment, MOHELA confirmed that I was due a refund and provided a specific date (May 13, 2025/120 business days) by which the funds would be returned. That date has passed, and I have not received the refund.Since then, I have made multiple attempts to contact MOHELA through their customer service channels to resolve the issue. My inquiries have gone unanswered, and I have not received any follow-up or explanation regarding the delay. Their failure to communicate and fulfill their commitment is unacceptable.I am requesting that MOHELA promptly issue the refund they acknowledged is owed to me and provide written confirmation of the transaction. I am also requesting a formal explanation for the delay and the lack of communication, as this situation has caused unnecessary stress and inconvenience.I expect MOHELA to resolve this matter immediately and in good faith.
Business Response
Date: 06/05/2025
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.
Customer Answer
Date: 06/18/2025
This inquiry can remain closed. I received my money back from them within a few days of them receiving the communication from BBB. Thanks again for your help.

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MOHELA is NOT a BBB Accredited Business.