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

3,810 total complaints in the last 3 years.
1,298 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:05/09/2025
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.
After changes from the incoming administration, Mohela has failed to support the volume of calls, inquiries and options due to changes are student loan debt/repayment plans. I've been left on hold LITERALLY for HOURS and this is unacceptable. Additionally, I haven't received replies to email messages. Student borrowers like myself are contacting them to attempt to navigate changes to the plans (per *****) and determine best solutions for repayment or forebearance options, etc. and if we don't get the info we need in a timely manner, we will be in serious financial trouble with our credit at risk and/or potentially having our wages garnished if we enter default. We should be helped if we are trying to manage our debt.
Business Response
Date: 05/12/2025
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: 05/13/2025
Better Business Bureau:

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

Sincerely,

****** *******
Initial Complaint
Date:05/08/2025
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 has mishandled payments, had incorrect billing, and delays in processing PSLF, IDR, and buyback applications. These delays have caused me and others to fall behind or have missed critical forgiveness milestones. Mohela is AWFUL at communication they fail to provide clear timely and accurate information to their borrowers leaving borrowers confused about their repayment status forgiveness eligibility and leading to financial penalties. Mohela violated its federal servicing contract by not adhering to the quality standard required by the Department of Education. Inaccurately tracked PSLF qualifying payments when they took over as the primary servicer.
Business Response
Date: 05/09/2025
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: 05/09/2025
Better Business Bureau:

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

Sincerely,

Jade S*******
Initial Complaint
Date:05/07/2025
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 have been in communication with Mohela since the beginning of April to attempt to resolve a forbearance issue. They have used extreme call dodging tactics. I requested that they remove my forbearance and was told it would take up to 10 business days (it should have been removed around April 29, 2025). 1 week ago I was told it would be removed around May 10th. I spoke with a supervisor who, without any adequate reason, told me it will now take 120 business days. I have been back and forth with Mohela for many years and had to deal with their evasive tactics. Here are the details regarding employee, and supervisor and case numbers for personnel I spoke with and dates of occurrence:4/16/2025:Reference number for request to have forbearance canceled: ******** Supervisor ID# ******** *******/07/25 Initial call employee #****** Supervisor #**** ****** Reference #********
Business Response
Date: 05/07/2025
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: 05/08/2025
Better Business Bureau:

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

Sincerely,

******* *******
Initial Complaint
Date:05/06/2025
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.
I have a refund for overpayment of student loans after discharge. My loans were discharged in January 2025 and I have a refund due. I waited the specified amount of time, which according to the *** is 2 weeks, but according to Mohela is ****** days. I have been waiting since 1/4/25 and today is 5/6/25. As soon as the 120 days was up, I sent an e-mail and got the same form letter I had received previously, like they think I didn't read the last one or that it gives any useful information at all. If I took this long to pay them, they would add all kinds of interest and fees. But all I can do is wait and wait and wait. Overpayments to the student loan companies are more than 10 bilion dollars that they just sit on. If they had to pay us interest the way we pay them when we are late, it would be different. In the meantime. They owe me almost $4,ooo dollars and it has been over the specifed 120 days for processing. Still nothing.
Business Response
Date: 05/07/2025
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: 05/15/2025
Despite my willingness to resolve this dispute, the website information and the letter sent to me describes a ****** day processing time. However, the new letter generated as a result of this dispute says the ****** days is following initiation of refund process and essentially starts over again. So it is actually ******* days. They don't tell you that in the first letter. They have no time constraint on refunding money, but make it sound like they do. Awful.
Customer Answer
Date: 05/15/2025
Better Business Bureau:

I have reviewed the business' response regarding complaint ID ******** and I accept this resolution. The original letter from over 4 months ago states that the refund will be processed within ****** days. The new letter generated from this dispute says ONCE INITIATED the process is ****** days. so I have been waiting 120 days and will wait another 120 days before I write to my congressperson if the refund doesn't show up. They don't tell you that initiation of refund is the start of the 120 days, not the date of the notification that you have a refund. They never make that distinction. Truly deceitful practice. It falsely leads borrowers to believe getting the initial notification is the initiation. It is not. Please post this information so that borrowers searching for this information are aware. They have no time limit to "initiate". Their clock doesn't start until they decide to start it. Without this complaint process, it would still be sitting there in negative balance, going nowhere fast.

Sincerely,

******* Pollen
Initial Complaint
Date:05/05/2025
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.
I have contacted Mohela by my count, ten times since Apr 1 2025, pursuant to a concern that my account has accrued MUCH more interest than is due. In July 2024 before going into forbearance in August, I had a total principal $254,449.25. Between then and Mar 16 2025, I made payments totaling $33,651.34. Instead of the balance decreasing to $220,797.91. Instead, it INCREASED to $265,321.24. It is currently $44,523.33 higher than it should be based on Mohela's ********** last call 4/25/2025, I spoke to a female resolutions officer named *****. She escalated my case to "resolutions management", and I was told I would receive an update in approximately ten days, I have not yet. I am asking for an update on progress made in correcting my account, so I may make payments against a known balance when they come due in September. Please call or reply with an update immediately.***** ********** Cell: ************
Business Response
Date: 05/06/2025
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: 05/06/2025
Better Business Bureau:

I have reviewed the business' response regarding complaint ID ******** and am satisfied with this plan for resolution. However if they do not respond within five days I will seek additional action.

Sincerely,

***** **********
Initial Complaint
Date:05/02/2025
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 currently at 113/120 qualifying student loan payments towards the **** program. I have always made timely payments on my debt for **** in an Income-Driven Repayment plan, Pay as You Earn, as required by the **** program. I received a letter dated October 20, 2024 from MOHELA stating that I needed to recertify my income for my PAYE plan by submitting my income to *** by November 6, 2024. I submitted my recertification several times in November, because it did not appear to go through, with my latest application being on November 8, 2024. The recertification application is still showing as "in-review" on the *** website, as it has been since November. I called MOHELA in November, and they said that due to court action my application would not be processed, but I could still make payments towards my forgiveness. I received a March 29, 2025 dated letter stating that the deadline to recertify my IDR had been pushed back to December 11, 2026 due to court action. I logged into my MOHELA account on April 11, 2025 to see if my monthly automatic payment had gone through, as it was due that day, and I noticed the website stated that $0 was due and my loans were in administrative forbearance due to "awaiting form." I was unable to make my April payment. I received no notice of the forbearance.I have called MOHELA multiple times. I called April 11th and waited over 3 hours to speak to "*****" #****, a "trainee" who told me that my forbearance would be cancelled in 5-10 business days. I waited those 10 business days and called again on April 25th and waited over an hour. I was told by "******" #**** that my forbearance would be cancelled after another 5-10 business days. I called today, the 5th business day, and waited over 3 hours to be told by "******" that it would now take ****** business days to be cancelled because of my pending recertification, a certification that they required in November, and she hung up on me. My account wrongfully remains in forbearance.
Business Response
Date: 05/05/2025
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: 05/10/2025
Better Business Bureau:

I have reviewed the business' response regarding complaint ID ******** and am satisfied with this resolution. It looks like my account is out of forbearance but they never reached out to me about the issue.

Sincerely,

****** *****
Initial Complaint
Date:05/02/2025
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 a formal complaint against ************************************* as my loans were forgiven through the ************** Loan Forgiveness Program as of October 31, 2023, and I am still waiting for a refund for the two additional payments that I made after October 31, 2023. I have called MOHELA numerous times, and they assured me that they would review my account and process the refund as quickly as possible, however, that was a lie. My MOHELA account ********************* that I have two active loans totaling the amount of $9,891.42, and that I owe a payment of $68.08 and is past due. I spoke to a MOHELA Employee named ***, Employee ID #****, reference # ********, and she reviewed my account and confirmed that my loans were already forgiven by reviewing the documents on my account and that she wasnt sure why there were still two loans showing on my MOHELA account stating that I owed money. Since my account was stating that I owed money and was past due, she placed the account under forbearance so that I wouldnt have to make any payments and so that it wouldnt reflect that my account was past due. She stated that MOHELA would review my account and by the time the forbearance period was over, the account should be fixed, however, it was not. That forbearance period is ending May 2025, which is now, and the account still shows that there are two loans owing money. This has been extremely mentally, emotionally, and financially stressful! I have enclosed correspondence emails between MOHELA and myself showing the timeline of communication, as well as documents from MOHELA and ************** stating that my loans were forgiven.Please help assist me in this matter and find a resolution with MOHELA and get my refund expedited as soon as possible. If you have any questions or need additional information, please contact me at: ************ or ******************************* Thank you for your time.Sincerely,****** (******) ********** **# ***********
Business Response
Date: 05/05/2025
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: 05/06/2025
Better Business Bureau:

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

Sincerely,

****** **********
Initial Complaint
Date:05/02/2025
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.
Without any notice, Mohela put me on forbearance. I even have a statement from ***** saying when my next payment is due (***** 26th) and was on an autopayment that never went through for that date. I got no letter and no phone call from Mohela stating I was going to be going into forbearance. When I checked the Mohela portal, there is no notice and no information about forbearance either. My *** account also shows my next payment date is ***** 26, 2025 and shows nothing about forbearance. I am 4 payments away from reaching 120 payments for public service loan forgiveness. I have never asked to be on the SAVE program and have been on **** for the length of my loan, nearly 10 years. Yet the first ****** I talked to from Mohela said I requested to have SAVE back in Nov 2024 - not true! She transferred me to a "advanced agent" to ask to be removed from forbearance. After waiting 2 hours, I was hung up on. Called back immediately, only to be placed on hold again to talk to a "advanced agent" - currently on hold while writing this and at the 2 hour mark again. All I want to do is get out of this forbearance, WHICH I DIDN'T ASK FOR, and finish my payments. How can you expect anyone to be able to sit on hold for hours on end when we have to work??
Business Response
Date: 05/05/2025
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:05/01/2025
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 not liable for this debt with MOHELA/DOFED, I do not have a contract with Business Headquarters Location, they did not provide me with the original contract as requested
Business Response
Date: 05/05/2025
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:05/01/2025
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 student loans are in administrative forbearance with 0% interest but thousands of dollars of interest have been added to my total loan amount over the last few months and it is impossible to get ahold of anyone from Mohela to fix this issue.
Business Response
Date: 05/05/2025
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.

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MOHELA is NOT a BBB Accredited Business.