Mohela Reviews and Ratings

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MOHELA is the federal student loan servicer for roughly seven million borrower accounts in the United States. Most borrowers did not pick MOHELA. The Department of Education assigned it to them. Many others landed with MOHELA after transfers from FedLoan Servicing, Navient or Great Lakes.

If you are reading this, you likely have questions. Maybe your account was moved without warning. Maybe your payments are not showing up correctly. Maybe you are trying to figure out who caused a billing error.

If you are searching for MOHELA reviews, here is what the record shows. MOHELA has received more complaints than any other student loan servicer. Two federal watchdogs have cited the company for repeated borrower harm. In May 2024, the Department of Education pulled the Public Service Loan Forgiveness (PSLF) and TEACH Grant programs from MOHELA.

This review covers the full federal record and real borrower complaints. 

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What is MOHELA?

MOHELA website homepage

MOHELA stands for the Higher Education Loan Authority of the State of Missouri. It is a state-linked student loan servicer. The Missouri state legislature created it. The company is based in Chesterfield, Missouri, a suburb of St. Louis. It holds Nationwide Multistate Licensing System (NMLS) number 1442770. It employs roughly 600 loan servicing staff.

MOHELA is not a lender. It does not create or own federal student loans. Instead, it manages them for the U.S. Department of Education under a federal contract. The company handles roughly seven million federal student loan accounts. These include direct subsidized and unsubsidized loans. They also include Federal Family Education Loan (FFEL) Program loans, PLUS loans and consolidation loans.

MOHELA also handles private student loans for select lenders. These include SoFi, Laurel Road and some credit unions. These accounts are separate from federal loan accounts. They have different contact steps.

As of May 2024, MOHELA is no longer the central servicer for PSLF or TEACH Grant programs. Both programs moved to StudentAid.gov under the Department of Education.

Did you choose MOHELA?

Most federal student loan borrowers did not choose MOHELA. The Department of Education assigns servicers through a federal contracting process. Borrowers who were with FedLoan Servicing, Navient or Great Lakes were often moved to MOHELA without their input.

Borrowers can change servicers by consolidating federal loans through StudentAid.gov. They can also refinance private loans with a different lender. However, this may reset progress toward PSLF qualifying payments. This is a key detail. Borrowers pursuing PSLF should weigh it carefully.

MOHELA regulatory and watchdog record

The federal record against MOHELA is long. Every finding below is sourced to a federal agency, not just consumer complaints.

October 2023 The Department of Education said that MOHELA failed to send monthly student loan bills to 2.5 million borrowers. This led to 800,000 borrowers missing a payment.

May 2024 The PSLF and TEACH Grant programs were pulled from MOHELA. Both programs moved to StudentAid.gov.

July 2024 The American Federation of Teachers (AFT) filed a lawsuit against MOHELA. The lawsuit alleges illegal overcharging of borrowers. It also alleges failure to process paperwork on time. A third claim describes a “call deflection scheme.” The scheme was designed to push borrowers toward automated systems. MOHELA denies the claims. No court has issued a final ruling as of this review.

2024 The Department of Education withheld $7.2 million in payments from MOHELA. It also moved one million borrower accounts to other servicers.

November 2024 Two federal watchdogs released reports in the same week. The Consumer Financial Protection Bureau (CFPB) released its Student Loan Ombudsman’s annual report. It found that MOHELA received more complaints than any other student loan company in America. The complaint volume far outpaced MOHELA’s market share. These federal-level MOHELA reviews paint a clear picture of ongoing issues. Failures include losing borrower account records. They also include wrong monthly bills and wrong payment amounts pulled from bank accounts. The Federal Student Aid (FSA) Ombudsman’s report called MOHELA’s failures “widespread servicing failures.” These failures blocked borrowers from lower monthly payments.

August 2025 The Better Business Bureau (BBB) downgraded MOHELA to an F rating. The company held an A-plus rating before October 2022. It then dropped to a B rating, then to NR (under review) and finally to F.

MOHELA key services and loan types

MOHELA handles a range of federal and private student loan products.

Federal loan types serviced

• Direct subsidized and unsubsidized loans
• PLUS loans for parents and graduate students
• Direct consolidation loans
• FFEL Program loans and CASH loans owned by MOHELA

Repayment programs available

• Standard repayment
• Graduated repayment
• Extended repayment
• Income-driven repayment (IDR) plans including Income-Based Repayment (IBR), Pay As You Earn (PAYE), Saving on a Valuable Education (SAVE) (where available) and Income-Contingent Repayment (ICR)

Additional services

• Deferment and forbearance processing for qualifying borrowers
• Military benefits including the Servicemembers Civil Relief Act (SCRA) interest rate cap
• Private student loan servicing for SoFi, Laurel Road and select credit unions

MOHELA no longer handles PSLF or TEACH Grant processing. These programs are now managed at StudentAid.gov.

MOHELA pricing and fees

MOHELA is a loan servicer, not a lender. It does not set interest rates, fees or loan terms. The federal government sets those for federal loans. The lender sets them for private loans.

As a federal loan servicer, MOHELA does not charge borrowers for its services. The Department of Education pays MOHELA under its federal contract. Borrowers pay their loan balance, interest and any federal fees through MOHELA’s platform.

For private loans through SoFi, Laurel Road or other lenders, those lenders set the fees and rates. Borrowers should check their loan agreement for details on late fees or other charges.

One area of concern involves the AFT lawsuit. It alleges that MOHELA illegally overcharged certain borrowers. MOHELA denies this. No court ruling has confirmed or denied the claim as of this review.

MOHELA customer reviews and complaints

MOHELA has the worst overall review record of any student loan servicer in this series. The pattern across every major platform matches the federal record.

MOHELA Trustpilot reviews

MOHELA Trustpilot profile

MOHELA has 117 reviews on Trustpilot. Roughly 98 percent of reviewers gave it one star, per Bankrate’s analysis. Positive reviews are rare. They mostly reflect basic account management without issues.

Negative MOHELA reviews follow clear patterns. Borrowers report PSLF payment count errors, IDR recertification failures and billing mistakes. Others cite forbearance placed without approval. Phone hold times reach two to four hours with no fix.

MOHELA has a Trustpilot profile. Its replies are limited compared to the volume of bad reviews.

MOHELA BBB reviews

MOHELA BBB profile and F rating

MOHELA holds an F rating from the BBB as of August 2025. The BBB issued an alert. The high volume of PSLF-related complaints drove the downgrade.

Complaints on file with the BBB cover all five major failure patterns. These include PSLF payment errors and IDR recertification failures. They also include billing disputes, forbearance placed without approval and slow fix times.

MOHELA replies to BBB complaints with form letters. These direct borrowers to secure messaging. Documented fixes are limited.

MOHELA CFPB and FSA complaints

MOHELA received more federal complaints than any other student loan servicer in 2024. The CFPB Student Loan Ombudsman’s annual report confirmed this. The complaint rate was higher than MOHELA’s share of the market.

The FSA Ombudsman’s report calls the failures systemic, not isolated. These two reports came out within 72 hours of each other in November 2024. They are the most important federal documents in MOHELA’s public record.

Reddit reviews

Reddit threads about MOHELA are many and detailed. Borrowers in r/StudentLoans and r/PSLF share stories that match the formal complaint record.

Common themes on Reddit include the following.

• PSLF payment counts that do not update for months
• Calls that go unanswered after two to four hours on hold
• Forbearance applied to accounts without the borrower asking for it
• IDR recertification dates changed after account transfers
• Refund requests pending for 90 days or longer

Several Reddit users report success after filing FSA Ombudsman or CFPB complaints. Others suggest contacting their member of Congress to push stalled cases forward.

Five documented MOHELA failure patterns

The complaint record across Trustpilot, BBB, ComplaintsBoard, Reddit and federal agency reports reveals five patterns.

Incorrect payment application and forbearance errors

Many complaints describe MOHELA placing accounts in forbearance without approval. These months are then not counted toward PSLF qualifying payments. One BBB complaint shows a borrower whose on-time autopay payments were listed as forbearance months.

IDR recertification processing failures

A Student Loan Planner survey found that some borrowers had their IDR recertification dates changed after transfers. One borrower’s date moved from February 2025 to April 2024. This cut nearly a year of qualifying IDR payments.

Billing errors and incorrect amounts debited

The CFPB Ombudsman’s 2024 report found MOHELA getting monthly bills wrong. It also found wrong amounts pulled from bank accounts. One complaint describes a borrower who paid ahead four months in December 2025 on MOHELA’s advice. MOHELA then removed the paid-ahead status after a recertification change. The refund request came with a 90-day wait.

Phone hold times and call deflection

The AFT lawsuit alleges MOHELA ran a call deflection scheme. The scheme allegedly pushed borrowers toward automated systems. It kept them away from human reps. Many complaints document hold times of two to four hours. Some borrowers report calls going unanswered after many attempts. Others report secure messages going without a reply for months.

PSLF payment count inaccuracies

Many borrowers pursuing PSLF report wrong payment counts. Payments do not reflect in their PSLF tracker for months. Refund requests have been pending for six months or more with no fix.

MOHELA outcomes and success rate

MOHELA does not share a satisfaction score or fix rate. This makes it hard to judge its performance.

Here is what the public record shows.

• The Department of Education withheld $7.2 million in payments from MOHELA in 2024.
• One million borrower accounts were moved to other servicers.
• PSLF and TEACH Grant programs were pulled from MOHELA.
• The BBB rating dropped from A-plus to F over a three-year period.
• Trustpilot reviews show a 98 percent one-star rating.

Borrowers who filed with the FSA Ombudsman or CFPB report mixed results. Some saw faster fixes. Others say that even after this step, wait times stayed long.

Reaching out to Congress has shown better results. Over 50 members of Congress have looked into MOHELA’s performance. Borrowers who contacted their rep report faster replies from the Department of Education.

Disclaimer. This article is for information only. It is not legal, financial or tax advice. Always talk to a licensed professional for advice on your situation.

MOHELA pros and cons

Pros

• Services federal student loans on behalf of the U.S. Department of Education
• Offers access to all federal repayment plans including IDR options
• Provides an online portal and mobile app for account management
• Handles military benefits including the SCRA interest rate cap
• Processes deferment and forbearance requests for qualifying borrowers

Cons

• Received more complaints than any other student loan servicer in 2024
• BBB F rating as of August 2025
• Two federal watchdogs cited systemic failures
• $7.2 million in payments withheld by the Department of Education
• PSLF and TEACH Grant programs pulled from its portfolio
• Borrowers report phone hold times of two to four hours
• AFT lawsuit alleges illegal overcharging and call deflection
• 98 percent one-star rating on Trustpilot

MOHELA best for and not recommended for

MOHELA may work for borrowers who

• Have a simple repayment plan with no PSLF involvement
• Need basic account management features like autopay setup
• Are not currently disputing payment counts or recertification dates
• Have private loans through SoFi or Laurel Road and need routine servicing

MOHELA is not recommended for borrowers who

• Are actively pursuing PSLF and need accurate payment count tracking
• Have had forbearance placed without approval
• Need responsive customer service for time-sensitive IDR recertification
• Have billing disputes that require prompt fixes
• Want a servicer with a strong complaint fix record

Note that most federal borrowers cannot choose their servicer. The Department of Education assigns servicers. Borrowers who want to leave MOHELA may consolidate at StudentAid.gov. But this resets PSLF qualifying payment progress.

PSLF and MOHELA in 2026

As of May 1, 2024, MOHELA is no longer the central servicer for the PSLF program. The program moved to the U.S. Department of Education at StudentAid.gov. Borrowers pursuing PSLF now check their payment counts and forgiveness status at StudentAid.gov.

As of May 1, 2025, the Department of Education paused PSLF and TEACH Grant processing. The pause will last until the transition is done. PSLF forms can still be sent in during this time. They will not be processed until the pause ends.

Borrowers whose loans remain with MOHELA should keep making payments as scheduled. A pause in PSLF processing does not pause the duty to make qualifying payments. Missed payments do not count toward the 120 qualifying payment requirement.

Writer note for editorial team – verify current PSLF processing status at StudentAid.gov before publication. This is a rapidly changing area.

What to do when MOHELA makes a servicing error

Borrowers assigned to MOHELA have options beyond its own customer service.

Step 1. Document everything

Keep records of every payment made and every message sent and received. Log every phone call with the date, time, rep name and what was said. Save screenshots of your account status. This includes PSLF payment counts and IDR recertification dates.

Step 2. Submit a formal MOHELA complaint in writing

Use MOHELA’s secure messaging system to submit the issue in writing. This creates a paper trail. Phone calls alone do not.

Step 3. File a complaint with the FSA Ombudsman

The FSA Ombudsman handles disputes that a servicer cannot fix. Contact the FSA Ombudsman Group at the U.S. Department of Education, P.O. Box 1854, Monticello, KY 42633. Online filing is also available at StudentAid.gov.

Step 4. File a CFPB complaint

Submit a complaint at consumerfinance.gov/complaint. The CFPB tracks student loan complaints. It has used MOHELA data in its oversight work.

Step 5. Contact your congressional representative

Over 50 members of Congress have looked into MOHELA’s performance. A request to the Department of Education from Congress can move a stalled case forward. Borrowers have reported success using this path on Reddit and other forums.

Is MOHELA legitimate?

Yes. MOHELA is a real, state-backed authority. It holds a federal contract to manage student loans for the U.S. Department of Education. It is not a scam.

The student loan amounts it holds are real government loans. Payments made to MOHELA are credited to the borrower’s actual federal loan account.

The complaint patterns show ongoing system-wide failures. The evidence includes two federal watchdog reports, an AFT lawsuit and a probe by Congress. A $7.2 million payment withholding and an F BBB rating further support this. They do not point to fraud.

If you worry that MOHELA is not crediting your payments, check your payment history at StudentAid.gov. Also check your PSLF payment counts there. That site shows the Department of Education’s records apart from MOHELA’s portal.

Can you change your MOHELA student loan servicer?

Federal loan borrowers

Borrowers cannot pick a new federal loan servicer on their own. The Department of Education controls this. However, loan consolidation through StudentAid.gov may lead to a new servicer.

There is an important caveat. Consolidating federal loans resets progress toward PSLF qualifying payments. Borrowers pursuing PSLF should talk to a student loan advisor first.

Private loan borrowers

Private loan borrowers with MOHELA through SoFi, Laurel Road or another lender can refinance. They can pick a different lender. This would move servicing away from MOHELA. It does not affect any federal loans.

Staying informed

The Department of Education plans to move some MOHELA accounts to other contractors. Borrowers should watch for transfer notices from StudentAid.gov.

MOHELA review final verdict

MOHELA is the most complained-about student loan servicer in America. Its complaint rate far exceeds its market share. Two federal watchdogs called its failures systemic. The BBB holds an F rating. The PSLF and TEACH Grant programs were pulled from its portfolio.

Most borrowers did not choose MOHELA and cannot change servicers right away. For those assigned to MOHELA, the most important actions are clear. Document every payment and message. Check payment counts and IDR recertification dates at StudentAid.gov. File with the FSA Ombudsman or CFPB if MOHELA does not fix your dispute in writing.

If you are a federal student loan borrower, compare lenders. Explore refinancing or consolidation options that fit your needs.

Frequently asked questions about MOHELA

What is MOHELA?

MOHELA stands for the Higher Education Loan Authority of the State of Missouri. It is a state-linked loan servicer. It manages federal and some private student loans for the Department of Education.

Did I choose MOHELA as my student loan servicer?

Most borrowers did not choose MOHELA. The Department of Education assigns federal loan servicers through a contracting process. Many borrowers were moved to MOHELA from FedLoan Servicing, Navient or Great Lakes.

Why does MOHELA have such bad reviews?

MOHELA received more complaints than any other student loan servicer in 2024. The five most common issues are PSLF payment count errors and IDR recertification failures. Borrowers also report billing mistakes, forbearance placed without approval and long hold times.

Does MOHELA still handle PSLF?

No. As of May 2024, the PSLF program moved to the Department of Education at StudentAid.gov. MOHELA no longer processes PSLF forms or tracks qualifying payments.

How do I file a complaint against MOHELA?

Start by sending a written complaint through MOHELA’s secure messaging. If that does not work, file with the FSA Ombudsman at StudentAid.gov. You can also file with the CFPB at consumerfinance.gov/complaint. Contacting your member of Congress is another good option.