MOHELA review: Mohela is a disgrace

I have had an extremely disappointing and harmful experience with MOHELA as a cosigner on a private student loan. Despite my limited involvement in the loan’s day-to-day management, MOHELA failed to notify me in writing of the loan’s delinquency or any remedial steps that could be taken. This lack of communication is inexcusable, especially given the severe consequences of delinquency reporting on one’s credit.

Instead of proactive outreach, MOHELA simply reported me to the credit bureaus without proper notice or opportunity to address the matter. Their justification stems from a 2020 letter they claim was sent by me requesting no phone contact — a letter I did not author. MOHELA interpreted that letter as a blanket communication freeze, which they used as an excuse to avoid sending me important updates, including delinquency notifications, for nearly five years.

This irresponsible and bureaucratic approach not only violated basic expectations of borrower and cosigner communication but also severely damaged my credit. When challenged, MOHELA conducted a weak internal investigation and concluded — unsurprisingly — that they had done everything correctly. They have refused to take any accountability or rectify the damage caused by their negligence.

It is deeply concerning that a federal servicer can operate with such disregard for fairness, accuracy, and due process. I would strongly caution any borrowers or cosigners from engaging with MOHELA and urge regulators to scrutinize their handling of borrower communications and credit reporting practices.

Giving them one star is onew star too many.