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

4,002 total complaints in the last 3 years.
1,394 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:06/19/2023
Type:Customer Service Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
I have let the company know multiple times that their phone system does not allow me to select the options that they claim are available. I have been unable to reach somebody in order to work out. My concern about my forms not being processed. I qualify under two forgiveness opportunities, and the company marked my forms as duplicate. Upon review of the forms, it’s obvious that they are not even the same form. I am unable to reach anybody or get a response from the company For support. This is the second time I’ve been unable to reach somebody since being transferred to the company. It’s been an awful experience.
Business Response
Date: 06/26/2023
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: 06/27/2023
Complaint: ********

I am rejecting this response because:
They still have not responded to my direct message to them at 6/19. I have no faith that they will at any point follow up on my case or respond to me. I am unable to reach them by phone because of their phone system hanging up on me when I select the option required. I reported this issue when transferred to their company and it still has not been resolved. I request that the Better Business Bureau continue to mediate as the company is non-responsive to my direct communication.

Sincerely,

***** ********
Business Response
Date: 07/02/2023
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: 07/03/2023
Complaint: ********

I am rejecting this response because:

Previous to the last review I had 112 qualifying payments. Following the review with an additional 8 months of payments eligible and certified for employment they just sent me a letter approving 106/120 payments. I believe they are retaliating my complaint to BBB and am less satisfied than ever with their communication and treatment of borrowers.

Sincerely,

***** ********
Initial Complaint
Date:06/15/2023
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.
Applied for PSLF in October. Form was approved 12/1/2022. MOHELA told me they initiated a transfer with my loan services and transfer should occur in 90 days. After 90 days I called MOHELA and was told they didn’t know why it hadn’t transferred and would initiate a manual transfer. I checked with my loan serviced and was told they had no contact from MOHELA. Today after nearly 130 days, I recontacted MOHELA and was told that they had requested a transfer from the wrong loan servicer (****** instead of ***********). I was told they would initiate the transfer today from *********** and that my account would be transferred in 60-90 days.
Business Response
Date: 06/26/2023
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:06/14/2023
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.
My PSLF-eligible loans were transferred from FedLoan to MOHELA. I have 119 eligible payments and 88 are listed as "qualifying." As of 6/13/23, MOHELA states that I am missing employment certification for 2007-2010. I'm not; they have my previously-approved employers in their system. All of my information was certified before ending up at MOHELA. Under the special waiver, my 2007-2010 period is now eligible toward PSLF, but when they became eligible in the system, they defaulted to to "employment not certified." MOHELA states they can't find my servicers who certified my employment (prior to moving to FedLoan). In addition, MOHELA has, in error, documented an economic hardship deferment from 2008-2014 as an in-school deferment. The economic hardship would have counted toward my PSLF, but the in-school doesn't. I was not even in school from 2008-September 2011. All my economic hardship documents were uploaded to prior servicers. I don't know who they used to be, and I cannot help that MOHELA "lost" my information. I deserve my PSLF forgiveness, as I've done everything exactly right for the last 15 years with these loans. Moreover, due to the "loss" of my employer certifications from 2007-2010, I am losing the PSLF forgiveness I'd otherwise be eligible for after one more payment. My employer during 2007-2010 was previously certified, as it was a school providing outplacement special ed services to children from public districts under FAPE. However, using with the new certification form, the school is no longer eligible, as somewhere in the last 15 years, "school social worker operating under a state board of education license, providing services required under FAPE to public school children deemed inappropriate for public school placement" lost eligibility because the employer is a private school. It was approved and certified & then the information was "lost." Now I am not able to recertify them. This internal documentation error is costing me years of payments.
Business Response
Date: 06/26/2023
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:06/14/2023
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 attempted to submit a payment for my student loans via check. Accompanying this check was a letter with specific instructions on how to apply the payment to my loan. I also specified that if this was not possible to be applied in the requested manner to please contact me with an explanation. The payment was then applied incorrectly to my account and I did not receive any communication from MOHELA regarding this payment. I have attached the original letter accompanying my payment and a screenshot of the actual payment that was applied to my account. I would like for MOHELA to readjust my payment to accurately reflect my instructions.
Business Response
Date: 06/26/2023
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:06/13/2023
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.
On March 23, 2022, I began the process of filing for Public Service Loan Forgiveness (PSLF). At the time, Fedloan was the company that was contracted with the PSLF servicing through the Department of Education (DOE). On June 26, 2022, Fedloan sent an online letter indicating that my loans qualified for PSLF and my employment was certified (properly qualified) for PSLF. The letter indicated that my loans would be transferred to Mohela as they were the company newly contracted to service PSLF.

In November of 2022, I contacted Mohela and my loan servicer, Great Lakes, and learned that no request for transfer was ever submitted to Great Lakes from Mohela. I was told I had to resubmit my application for PSLF through Mohela. On December 20, 2022, Mohela received my PSLF application. In April of 2023, I spoke with a supervisor from Mohela who stated that my application was "processed" on April 5, 2023 and an automatic request to transfer my loans from Great Lakes to Mohela was submitted. I contacted Great Lakes and learned no such request had been received. In May of 2023, I spoke to another supervisor from Mohela who stated she would submit a request for a manual request for transfer to be submitted by Mohela to Great Lakes. On May 24, 2023, I spoke to a supervisor at Great Lakes that indicated that no request for transfer had been submitted for my loans. On May 24, 2023, I followed up with Mohela and was told that on May 22, 2023, the request for transfer was submitted to Great Lakes. On May 30, 2023, I received a letter from Great Lakes indicating that a thorough search of their records up to May 30, 2023 revealed that no requests had been received to transfer my loans.

On June 1, 2023, Great Lakes seized to exist as a loan servicing company. On June 13, 2023, my loans were transferred to Nelnet.
Business Response
Date: 06/20/2023
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: 06/20/2023
Complaint: ********

I am rejecting this response because:

Mohela has made no attempt to communicate with me and has not reached out to me in any form. Their inactivity to address my issue has been continuous since April 5, 2023. Multiple supervisors have maintained the same company-supported response: "A request for transfer of your loans has been submitted", with no such transfer request being received by my servicer to date.

Sincerely,

***** *******
Customer Answer
Date: 06/29/2023
Although BBB has determined that Mohela has made a good faith effort to resolve my issue, this has continued to be a failed endeavor. The attached letter was sent by Mohela to me. None of these "requests to transfer" my loans has been received by my servicer. Mohela continues to rely on their internal systems reflection that requests to transfer have been submitted, but this is contradicted by my servicer. My new servicer has not received any requests to transfer my loans and the attached letter is proof of this as of May 30, 2023. Follow-ups with supervisors have confirmed the same.
Initial Complaint
Date:06/13/2023
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 participate in the Public Service Loan Forgiveness program and Mohela certified and approved that I had reached 120+ payments which qualifies for loan forgiveness on two of my four federal student loans. This was certified and approved back in October or December of 2022 (I have documentation to prove this, can be seen through my Mohela and FSAID account). Here we are, at the very least 6 months later, and those loans still haven't been forgiven. I've reached out to Mohela on numerous occasions and the only responses they can give me are "congrats, keep waiting and they'll eventually be forgiven, we don't know when just keep waiting" etc. How can they not have any further information about this, and why am I still waiting 6+ months later for forgiveness on these loans? Please help! Thanks
Business Response
Date: 06/20/2023
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: 06/20/2023
Complaint: ********

I am rejecting this response because:

I've reached out to them directly numerous times and I still haven't received an answer.

Sincerely,

***** ********
Business Response
Date: 06/26/2023
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: 06/27/2023
Complaint: ********

I am rejecting this response because Mohela still has not gotten back to me, and this response is identical to the one I previously rejected. Is Mohela serious?

Sincerely,

***** ********
Initial Complaint
Date:06/13/2023
Type:Service or Repair Issues
Status:
AnsweredMore info
Complaint statuses
Resolved:
The complainant verified the issue was resolved to their satisfaction.
Unresolved:
The business responded to the dispute but failed to make a good faith effort to resolve it.
Answered:
The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
Unanswered:
The business failed to respond to the dispute.
Unpursuable:
BBB is unable to locate the business.
In June of 2022, yes 2022, I received a letter date 05/27/2022 that my loans were being transferred to MOHELA for the student loan forgiveness program. It stated that within 90 days I should receive a welcome letter from MOHELA. Time passed, I realized I never received the letter. In February 2023, I emailed MOHELA using their portal and received a response stating my loans were still be transferred. On March 13, 2023 I called MOHELA and the representative stated to me she put in a request for my loans to be MANUALLY transferred. This process would take 60 - 90 calendar days. I made follow-up calls in April and May 2023 to make sure my transfer was not falling through the cracks. As of the date of the complaint, my loans have not been transferred and no resolution has been offered. I hope this will get the ball rolling, considering I have been waiting a year for my loans to be transferred.
Business Response
Date: 06/20/2023
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:06/13/2023
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 have fulfilled all requirements for PSLF. Mohela updated my payment count in April however has not reflected to my total balance nor my credit report. I’ve contacted Mohela twice about the issue and keep being told it will be processed with no timeframe. I would like my online account and credit report updated.
Business Response
Date: 06/26/2023
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:06/12/2023
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.
I have been waiting for a refund check since October 2022 when I first requested it. I have called for updates on Jan. 13, Feb, 27, March 15, April 10 and now 6/12/2023.

I called and spoke to David in Customer Advocacy today. He pretty gave me the same response I have been getting every time I call. He will be moving my request to management to see if it can get processed sooner. I made all my payments to Mohela, not a third-party servicer. I had heard a couple of times from representatives that they do not understand why it has taken so long since the payments were made directly to Mohela.
The previous time I spoke with, ******, a supervisor on April 10, 2023. She indicated she had to submit an email to Accounting because Accounting made a note indicated there were no payments made to process a refund. She called me back and said it had been resolved and on April 19, a request was sent to process a refund for $2020. She said to give it 30-60 days. Today when I called the representative told me there was a note on my account dated May 8, 2023 stating the request was canceled due to a duplication.
I am so frustrated and feel extremely helpless. I don't know what else to do. Each time I call I expect to be told, it has been resolved and give it 30 days or 60 days. I have been calling since October 2022, and wait 30 days or 60 days and I am still waiting for my $2020 refund.

My account number is **********.

Note: This refund is from payments I made during Covid.
Business Response
Date: 06/20/2023
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: 06/20/2023
Complaint: ********

I am rejecting this response because:

I would like for them to share the history of my interactions with you. I have a hard time understanding why it has taken so long and the responses I receive of Accounting not understanding how to read my account or them canceling the request or stating there was duplication of some sort.
I have uploaded the form once again with my wet signature so hopefully they will share details from my account with you. I just checked my MOHELA account and no communication has come through.

Sincerely,

******** *****
Customer Answer
Date: 07/05/2023
Hello,
I just wanted to send an update. Today, Wednesday, July 5th, my check was received from the Dept. of Treasury. It was $100 less than what was stated but that is alright. I am greatly satisfied to receive the check I have been requesting since October 2022. I just want to express my sincere thanks for assisting me with this matter. You're services are very valuable.
Initial Complaint
Date:06/12/2023
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.
Four payments were made to MOHELA on March 6, 2023 ($9,501), March 19, 2023 ($495), March 24, 2023 ($1,000), and April 23, 2023 ($3,000) respectively; and, a particular payment made on March 6, 2023 in the amount of $9,501 (with a Confirmation # *************) is not being accurately reflected on my MOHELA account since around Sunday, June 4, 2023. This March 6, 2023 payment instead being reflected as $5,001 since around June 4, 2023 where $4,500 is totally gone with its confirmation # being deleted.

This MOHELA account was transferred from NELNET on 02/16/2023 (no more student loan was disbursed since January 18, 2023 by the University of Florida) for a total amount of $28,996. An original, initial total remaining balance was consisted from three student loans namely Loan# 1 (Group AC) for the amount of $5,500; Loan# 2 (Group AD) for the amount of $13,995; and Loan# 3 (Group AE) for the amount of $9,501.00 for a total amount of $28,996 for its original principal.

Now, MOHELA is not only stole from one of the four payments made in the amount of $4,500, but has also illegally and inaccurately recorded an original principal amount balance of $33,326 instead of $28,996 (transferred from NELNET on February 16, 2023).
Business Response
Date: 06/26/2023
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: 06/27/2023
Complaint: ********

I am rejecting this response because:

MOHELA needs still to correct my student loan account by having to restore fully of a payment I made on March 6, 2023 in the amount of $4,500.
Loan 1 remaining balance needs to be $5,000
Loan 2 remaining balance needs to be $10,000
Loan 3 was paid in full

Sincerely,

***** *****

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MOHELA is NOT a BBB Accredited Business.