MOHELA, Inc. has a wide range of student loan products for borrowers in the United States and Canada, including federal loans, private loans, and loans through the Federal Direct Loan (DL) Program. In addition to traditional loans, there are a number of options for students to obtain an education loan. One popular option is a student loan in the Federal Family Education Loan (FFEL) program.
It doesn’t matter what year you attend college or what program you’re in, the MOHELA Student Loan Program is here to help you make the most of your education. With these four complaints about the MOHELA Student Loan Servicing, you’ll know what you’re in for when you sign up.
When you go to the bank, you trust that the financial institution is going to make good on its promises. But when you go to the government and the government promises to pay, you are trusting an entity that has a history of being completely unreliable. With the rise of student loan debt, millions of people have had the rug pulled out from under them. At MOHELA, we’ve been in the student loan industry for over 30 years and we’ve seen a lot of things. We’ve seen dishonest lenders, dishonest servicers, and dishonest collection agencies. We’ve seen students who are unable to pay their loans, and we’ve seen lenders take their homes—all because of the government’s terrible policies.
Do you have a student loan that is administered by MOHELA? If this is the case, pay attention to how your loan is managed. MOHELA has fewer negative reviews than complaints about other credit services. However, there are some common conditions that can cause you heart pain in the future. Here’s what you need to know.
What is MOHELA?
MOHELA stands for Missouri Higher Education Loan Authority. MOHELA is one of the largest non-profit credit management companies in the United States. The company’s headquarters are in St. Moritz. The company has offices in St. Louis, Missouri, and additional offices in Columbia, Missouri, and Washington, D.C. It was established in 1981 to administer loans under the Federal Family Education Loan (FFEL) program. It now manages private and federal student loans.
The best complaints from borrowers about MOHELA
In our survey on refinancing, we asked readers about their experiences with student loan lenders. Of the 385 respondents, only seven named MOHELA as a company that manages federal student loans. However, hundreds of complaints from MOHELA borrowers can be found online, most of which fall under the following four situations.
1. PSLF questions
Many borrowers with MOHELA-managed loans from the Department of Education are seeking utility debt forgiveness (UDW). The PSLF program is confusing to borrowers because of its terms. You need to track your claims to make sure you are making the right qualifying payments. Most of MOHELA’s complaints have to do with not understanding what PSLF is. Borrowers receive little information about student loan forgiveness programs. One borrower reported that she had contacted MOHELA to qualify for PSLF. Years later, she found out that none of her loan payments were eligible and that she had not submitted the proper documentation.
Each time she spoke to a MOHELA employee, she received different information. Another borrower called MOHELA several times and specifically asked to be included in one of the PSLF loan repayment options. The loan was eventually transferred to another credit management company. The borrower discovered that MOHELA had improperly stopped payments. None of the payments will be taken into account under the PSLF. The borrower estimates that MOHELA’s error cost him more than $3,500 in additional fees.
2. Too many calls
Another common complaint about MOHELA is the number of phone calls borrowers receive. Most of these complaints involved late payments for student loans. One of our readers reported that he kept getting calls even when his payment was just a few days late. Another borrower whose loans are managed by MOHELA said: My loan was about 9 days late. I owed them $10 and they called me several times, at all hours of the day.
I paid, but they kept calling for almost another week with their automated calls, interrupting my work day, etc. It’s ridiculous. Another person said MOHELA employees began calling family members at their home when the loan was 21 days past due. Ask me about your student loans
3. Problems with the transfer of student loans MOHELA
Sometimes student loans are transferred to different lending institutions. When this happens, credit data can be lost or confused. This is true for some MOHELA borrowers. For example, a borrower transferred his student loans from another servicing company to MOHELA. They said there were some errors in the translation. The biggest mistake was doubling the total debt from $100,000 to $200,000. Despite repeated requests to the MOHELA to rectify the situation, nothing had changed at the time the complaint was filed.
4. Customer service
Most of the complaints about MOHELA relate to customer service. The most common complaints concern inadequate or unreliable information. Moreover, they do not respect the wishes of the borrowers. A reader of Student Loan Planner® reported that MOHELA’s customer service was pleasant, but that the servicer did not initially apply the interest rate reduction. The borrower should have brought this to MOHELA’s attention.
These customer service issues can be frustrating for borrowers. People plan their entire repayment plan based on the advice they receive. It’s important to do your homework. Don’t rely on the information you get from your credit union’s customer service department.
MOHELA study credit: What can you do if MOHELA is your service provider?
Despite some problems with borrowers that led to negative reviews, MOHELA is not considered as bad as other loan servicers. In 2018, the Consumer Financial Protection Bureau received only 119 complaints about MOHELA. The company also has an A+ rating from the Better Business Bureau. However, if you have a problem, you may file a complaint directly with the MOHELA Ombudsman by sending a formal request by mail to the following address MOHELA Mediator, 633 Spirit Drive, Chesterfield, MO 63005.
You may also fax your complaint to 1-866-222-7060. If MOHELA is your loan officer and you are not satisfied with their services, you do not have to stay with them. At Student Loan Planner®, we can help you find the best way to repay your loans. This may mean consolidating your loans with a new manager with a direct consolidation loan. Another option is to refinance your loans through a private lender. However, there are many repayment strategies you can explore to make the most of your finances.
Paying off your student loans is one of the most important financial decisions you will ever make. You don’t have to have a bad credit manager if you are unhappy. A plan for a student loan Refinance your student loan and receive a bonus in 2021.
Frequently Asked Questions
Is Mohela a good loan servicer?
Mohela is the nation’s largest student loan servicer, with over 4 million loan borrowers under its care. The company manages a variety of private and federal student loans, including federal, state, and private student loans, as well as income based student loans. Many of Mohela’s customers are happy with the service they receive and are satisfied with the benefits of the company. However, a lot of customers are complaining about Mohela for a variety of reasons.
The complaints range from incorrect information provided to borrowers, with one complaint stating that Mohela told him his loan had been discharged when it hadn’t, to loan discharges, with another complaining that Mohela charged a fee when it should have been his responsibility. ~~ 4 Top Complaints About MOHELA Student Loan Servicing MOHELA loans are a popular loan type. As MOHELA has become one of the nation’s top loan servicers, consumers have turned to MOHELA for support and information. In honor of the company’s birthday, we have compiled a list of 4 top complaints from borrowers.
Does Mohela forgive student loans?
Every year students are told they should “settle up” their student loans before they graduate. If you are like most, you are probably struggling with this responsibility. You might consider paying off the loan on Mohela, but what about your other debts? You have to pay off the MOHELA student loan before you can pay off your other debts, right? In 2008, I was making payments on a student loan. For a time I was making student loan payments on time and trying to get myself back on track.
After a while, I had to make a few payments on the loan go into default. I was in a very bad place, so I called MOHELA. They asked questions about my situation and then offered solutions. I was able to get my student loan in great shape and now it is making payments on time. I went from being in a very dark place to being in a great place.
Are Mohela loans federal or private?
According to a recent survey, nearly half of borrowers across the country are experiencing some level of concern over how the loans they are repaying are being serviced. Many borrowers believe the loans are being handled improperly by the loan servicer, but what do they know? MOHELA is committed to providing all borrowers with the highest standards of service and fair treatment. Regrettably, certain private and government-run loan servicers have been reported to have a pattern of deficiencies in servicing, including overcharging, and under-performing.
The U.S. government established the MOHELA Student Loan Program in the 1970s to provide low-interest, short-term educational loans to assist students with their college costs. It was up to the individual borrowers how they managed their loan repayment, but the loan program was federally-funded, and MOHELA provided all routine servicing, including payment processing, collection, and accounts management.
