Student loan forgiveness update as Mohela forcing repayments sparks fury

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A group of six Democratic senators accused Mohela of processing delays that could force borrowers eligible for debt relief into entering repayment.

and Cory Booker—wrote that borrowers with Mohela had complained of long waiting times before getting in touch with customer service at the company, as well as problems receiving credit for the qualifying payments made toward the program.

Student loan borrowers demonstrate at a rally outside of the Supreme Court, on June 30, 2023, in Washington, D.C. Six Democrats are calling on the Education Department to investigate Mohela."Over the last few months, we have heard numerous concerns from public service borrowers as they prepare for the start of repayments," the lawmakers wrote.

"Many borrowers report that they have not received credit for all of the qualifying payments they have made, have experienced long wait times when attempting to contact Mohela representatives for any type of assistance, and some borrowers who have been approved for forgiveness report long wait times to actually get the refunds to which they are entitled. In some cases, we are hearing that this process can take up to a year.

 

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