What Servicers Are Alleged to Have Done
Servicers administer federal loans under contract to the Department of Education. Claims and enforcement have concerned miscounted qualifying payments for Public Service Loan Forgiveness, delays in processing applications and certifications, and call handling that allegedly discouraged borrowers from completing applications.
For a borrower pursuing forgiveness over a decade, a miscounted payment total is not an administrative annoyance. It can extend the repayment period by years.
Verify the count yourself
Check your qualifying payment count against your own payment history and employment certification records rather than relying on a servicer figure. Discrepancies are the single most common complaint in this area and are only correctable if identified.
The Legal Framework
Claims proceed under state consumer protection law and federal credit reporting law, and state attorneys general have brought enforcement actions. Whether federal law preempts state claims against federal contractors has itself been contested.
Borrowers have a practical statutory tool in written disputes, which trigger response obligations that telephone contact does not, and which build the documentary record any later claim depends on.
Practical Steps
Download your complete payment history and all employment certification forms now and store them independently. Loans transfer between servicers regularly and records become hard to reconstruct afterwards.
Dispute discrepancies in writing, keep copies, and escalate unresolved issues to the Federal Student Aid ombudsman and the Consumer Financial Protection Bureau, both of which accept complaints free.
Keep your own records before any transfer
When servicing transfers, payment histories and certification records do not always move cleanly. Borrowers pursuing forgiveness have found counts reset or reduced after a transfer, and independent records are the only reliable protection.
Free Legal Evaluation
Do You Qualify to File a Claim?
Our network of verified plaintiff attorneys offers free, no-obligation case evaluations. Contingency fee representation means you pay nothing unless you win.
MOHELA Lawsuits: Student Loan Servicer Conduct and Forgiveness Processing: Frequently Asked Questions
Answers to the most common questions about this case and your legal options.
What do servicer lawsuits allege?
Miscounted qualifying payments for forgiveness, delays processing applications and certifications, and inaccurate information about eligibility.
Why do payment counts matter?
For forgiveness programmes requiring ten years of qualifying payments, a miscount can extend repayment by years, so accuracy has substantial financial consequences.
How do I check my count?
Compare the servicer figure against your own payment history and employment certification records, and dispute discrepancies in writing.
Where do I complain?
The Federal Student Aid ombudsman and the Consumer Financial Protection Bureau both accept complaints free of charge.
What happens when servicing transfers?
Records do not always move cleanly, and borrowers have found counts reset or reduced. Keep independent copies of payment histories and certifications.
Legal Disclaimer
This article is general legal information, not legal advice, and does not create an attorney-client relationship. Case status, eligibility criteria, and any amounts described are as reported at the date shown and may change. Consult a licensed attorney in your jurisdiction about your own situation.