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

3,732 total complaints in the last 3 years.
1,258 complaints closed in the last 12 months.

If you've experienced an issue

Submit a Complaint

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

Initial Complaint
Date:01/06/2023
Type:Customer Service Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
I am unable to speak to a person to ask any questions about my student loans. I am unable to send an email it send me right back to the contact page. I have questions and want to speak to a person. I have been on the phone for over an hours several times and I keep going in circles with their recordings.
Business Response
Date: 01/12/2023
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 would to speak with someone on the phone. Not a voicemail if I do not answer the phone as I may be at work. I have a few questions. I have tried numerous times to talk with someone. I only get a recording of what to do but does not resolve my questions. I do not want to have a written response. What if i have more questions.

Sincerely,

****** **********
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
Complaint: ********

I am rejecting this response because:I would like them to call me at ************

Sincerely,

****** **********
Initial Complaint
Date:01/05/2023
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 the onetime loan forgiveness program under the Biden administration. I was informed that I was accepted in and for the program and would not have to make any further payments until the issue was resolved. I received a bill from MOHELA on January 2, 2023 indicating that a payment was due on January 14, 2023. I contacted MOHELA today, January 5, 2023 to find out why they had sent me a bill even though their recording and the status update by the U.S. Department of Education states that the one time loan forgiveness program has not been ratified and that all payments will resume sixty days after the June 30, 2023 deadline that the government has to resolve the issue. MOHELA refuses to give me documentation as to why I am being asked to make payments in lieu of this. I am asking that my loan payment be suspended until it is clarified by the government as is the agreement that the government indicates..
Business Response
Date: 01/10/2023
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: 01/11/2023
Complaint: ********

I am rejecting this response because: the company has not reached out to me as of this writing
and there is not an identified and specific person assigned for me to talk with. This company is
notorious for saying that they can't access your record and hanging up on me after placing me
on 20 and 60 minutes of hold. Furthermore, if I have given the BBB the right to access my
information in order to resolve the issue, how can MOHELA cite HIPPA or privacy concerns?
In my estimation, they do this so that there tactics will not be exposed.
It is my firm belief that I need the BBB in order to not be taken advantage of by MOHELA.

****** *****

Sincerely,

****** *****
Business Response
Date: 01/13/2023
MOHELA has received this customer’s inquiry. Please be advised that MOHELA sent a written response to the customer addressing the issues raised in their complaint on January 11, 2023. 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: 01/14/2023
Complaint: ********

I am rejecting this response because: I have not received any documentation or
communication from MOHELA as of this writing.

Sincerely,

****** *****
Business Response
Date: 01/31/2023
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:01/04/2023
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.
There are several issues with my current MOHELA engagement. I have applied for PSLF multiple times with no response or resolution. I have been working for a qualified employer for the past 8 years. I have also applied & renewed for IDR plans to ensure I am able to get PSLF. This has been met by ******* Servicing and by MOHELA with no response and no action. My IDR, loan forgiveness, and PSLF are not reflected on my account. It is infuriating to continue to advocate for services that I am entitled to as a result of my time in public education and qualifying payments with no response and no action. If there are any additional forms required for employment verification, please send them directly to me: ***************************. Please review my account thoroughly and inform me of any further action I need to take to ensure this is resolved.
Business Response
Date: 01/10/2023
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:01/04/2023
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.
My loans transferred from FedLoan to Mohela in August and ever since then I've been having a terrible experience with my provider. I have two issues that have been ongoing since October.The first is getting a refund of a lump sum payment made during covid. I put in the request October 3, 2023 and stated all payments were made prior to the transfer with FedLoan. I found out today, 1/4/23, the request was only made to refund payments made to Mohela and not FedLoan. The request to refund Fedloan was not inputted until 12/2/23 which starts the waiting clock over and cannot be expedited although this was Mohela's mistake. I waited over 2 hours on hold to speak to a supervisor after holding over a hour and then being disconnected. The second issue is the **** request I sent in was never processed and still just pending. These applications are taking extremely to long to process. I would like my refund and **** processed in a timely manner.
Business Response
Date: 01/10/2023
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: 01/12/2023
Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. I received a letter that my PSLF was processed and I can see the update in my account. The letter also stated the refund has been processed and I show my account balance updated.

Sincerely,

***********************
Initial Complaint
Date:01/04/2023
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.
This is in regards to the transfer of my account (#**********) from FedLoan Servicing. I have attempted to contact an Escalation Representative and have been met with exorbitant wait times that are untenable under any circumstance. My account, as per your representatives, transferred to your company, MOHELA on 9/27/2022.On 10/4/2022, I was sent a letter titled, "We Have Received Your Request ****************** Loan Forgiveness", dated 9/29/2022.I did not request ************** Loan Forgiveness (****). My account was transferred from FedLoan Servicing to MOHELA due to already being enrolled in this program AND not having met the 120 qualifying payments. I have no reason to apply for this forgiveness at this time.This letter states my loans do not qualify for the **** Program. This is inaccurate. The reason my loans were transferred to MOHELA was because I was already enrolled in the **** Program. This means my loans are currently eligible.To support this, a screenshot is attached of the type of loan I maintain with the United States Department of Education, found on my studentaid.gov account. As you can see, I have 2 DIRECT UNSUBSIDIZED loans.Further, I have attached verbiage from the United States Department of Education that indicates:-Direct Unsubsidized Loans are part of the Direct Loan program -Subsequently, Direct Unsubsidized Loans qualify under the **** program -The educational institution where I took these loans out from participate in the Direct Loan Program Given evidence provided, I am asking you:1) To indicate the correct status of my loans within your system as eligible.2) Process my Employment Certification Form your representatives confirmed on 10/4/2022, 11/4/2022 and 1/3/2023 MOHELA is in possession of, yet cannot process due to the incorrect status of my loans.I look forward to your prompt response as to when I can expect my account to reflect the correct status of my loans and my eligible payment count updated. Thank you.
Business Response
Date: 01/10/2023
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: 01/13/2023
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. MOHELA addressed each of my concerns and my issue has been fully resolved.

Sincerely,

*******************************
Initial Complaint
Date:01/04/2023
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.
On 2/23/2022 I spent over two hours on the phone (mostly on hold) with Mohela we talked to ****************) ********* acknowledged certification from 10/1/2008 until 10/1/2022. During that time I made 168 qualifying and certified on time payments. Mohela assumed the loan from ********* on 9/15/2022. Since that time communication has been awful. I submitted PSLF certification to Mohela on 9/23/2022, 10/5/2022, 10/25/2022, 12/16/2022 and 12/23/2022. Any or all of these certifications should have been sufficient. These originally were marked "wait 90 days for processing" then later updated to "duplicate, not processed". This appears to be a modus operandi as on the 12/23/2022 I was assured that the the certification appeared to be in good order and that the processing of loan forgiveness would be "Expedited & Escalated". Several days after the conversation it was updated from "expedited and escalated" to "Please allow 90 business days for processing. Once a decision has been made you will receive notification of approval or denial. No additional steps are required of you at this time." I am certain if some one competent in there organization reviews this case file it can be resolved within 5 minutes. But since I can't get a response I am now submitting complaints to CFPB, BBB, the US Department of Education, and Senator *** ********** That make take Mohela more than 5 minutes to resolve. At present Mohela Payment tracker shows 117 qualifying prior to 8/1/2022. As such please verify that the certification submitted represented certifies at least 3 additional months. Also please verify that 117 + 3 = 120. My 168 qualifying, certified, on time, eligible payments far exceeds the 120 required by law. Please discharge the debt as required by law.
Business Response
Date: 01/10/2023
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:01/04/2023
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 loan services is the most difficult company to get ahold of.For months I have been trying to get an update provided to me on the status of my PSFL count towards loan forgiveness. This account was transferred from Fed Loan back in July of 2022 and has been in a stalemate like millions of other borrowers. Generic email responses, if you get one months later, No UPDATE for months!Looking at all these other complaints sadly I am not alone.Get it together Mohela update client profiles so they know where they are, information submitted in September of 2022 should not be pending in January of 2023? People have a right to know !
Business Response
Date: 01/10/2023
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: 01/11/2023
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. However I reserve the right as should all borrowers being serviced by Mohela much better communication when it comes to timely responses resolving concerns and issues that affect them going forward. I look forward to a better experience with the remaining time I have left under this servicer seeing as how they are the only ones who provide PSFL forgiveness. No one should be held hostage for months on end without a timely resolution or response.

Sincerely,

******* *******************************
Initial Complaint
Date:01/03/2023
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 08/29/22 I faxed one PSLF form to Mohela for my current employer. On 09/09/22 a second PSLF form was faxed to Mohela for my previous employer. In total two PSLF forms have been submitted for two separate employers. On 12/27/22 I received a letter in the mail from Mohela that my employers did not fill in required information for Section 4 of the PSLF form. Upon review both PSLF forms are not missing any information in Section 4 of the PSLF form. On 01/03/23 I called Mohela to address the letter I received in the mail. I spent 18 minutes on the first call only for the system to hang up on me. I spent another 45 minutes on the line when a representative got in the phone to tell me there was no issues with either for, unfortunately the representative could not create a ticket for me to fix the issue, so he transferred me to the Supervisor line. I spent well over two hours on the line waiting for someone to pick up with no answer. In total I have spent over 4 hours on 01/03/23 on the phone to be told there was no issue with the PSLF forms submitted under my account and for a ticket to not be submitted. I am incredibly irritated I have had to spend time out of my day to be told by a representative that the forms were in fact correct and I should not have received the letter in he first place.
Business Response
Date: 01/09/2023
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:01/03/2023
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.
Upon my review of my consumer reports it has come my attention that MOHELA/DEPARTMENT OF EDUCATION are reporting an account/ accounts to my Consumer reports that I did not give any express permission or permissible purpose to report. As a consumer I have the right to privacy pursuant 15 USC 1681, 15 USC 1692, 15 USC 6801. This company reported my Confidential and private information to a nonaffiliated third party without my permission or without giving the proper disclosures. Pursuant 15 USC 6802
Business Response
Date: 01/09/2023
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: 01/17/2023
I recently filed a complaint with bbb against mohela , they responded saying the information was accurate and totally ignored the rest of the letter : To whom it may concern, You recently responded to my dispute with BBB Case#: ********, you said I was provided noticed about the information that is shared with third parties. Can you show me the document you provided to me at the time I supposedly signed this loan? Mohela has an obligation to ensure integrity and accuracy of information reported to CRA’s. You claim that this information is reporting accurately to the CRA’s but you only responded to 1 part of my original dispute. You choose to ignore and disregard the law by congress. According to congress under 15 USC 1681(a)(2)(b) – “The term consumer report does not include : Any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card of similar device.” Under the truth in leading act 15 USC 1602(g) credit card is define by the following: The term “credit card” means any card, plate, coupon book or other credit device existing for the purpose of obtaining money, property, labor, or services on credit. This makes my social security card, driver’s license/ID, and license plate credit cards that are/were used for the extension of credit. At the time of this loan, I was approved of this extension of credit from Mohela directly from my social security card and Driver license, which make these accounts reporting to CRA’s inaccurate and I demand it must be deleted according to Fair Credit Reporting Act. You have 10 calendar days from this 2nd notice to delete this from all CRA’s. I am prepared to take this to the American arbitration association and see (see attached documents)
Business Response
Date: 01/17/2023
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:01/02/2023
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.
This has to be the worst company i've ever dealt with. I went into in school forbearance in which I was told my account needed to be current in order for my forbearance to be accepted. After a month long process my forbearance was finally accepted and that's when the trouble began. I was told my account was in default since June of 2022 although I made 4 payments between the months of July and August. After speaking to approximately 10 customer service reps including supervisors was told that although the system showed I was making my payments the payments I made weren't being counted toward my bill so a ticket needed to be put in. The ticket was put in around October and as of January 2023 my account still shows that I am default and pass due since June 2022. They have reported negatively on my credit which made my credit score drop tremendously. Whenever I call in I always hear the same response of they are fixing the issue and when I put in a callback to speak with a supervisor I never get a response.
Business Response
Date: 01/09/2023
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.

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MOHELA is NOT a BBB Accredited Business.