MOHELA Credit Reporting Errors

Is MOHELA Reporting Inaccurate Information on Your Credit Report?

Your student loan information should accurately reflect what you owe and your payment history. Unfortunately, errors involving MOHELA student loans can leave consumers with incorrect balances, duplicate accounts, or late payments they never missed.

These mistakes can have serious consequences. Inaccurate student loan reporting may affect your ability to qualify for a mortgage, obtain financing, or rent a home.

If MOHELA is reporting inaccurate information on your credit report, you may have a case under the Fair Credit Reporting Act (FCRA).

Francis Mailman Soumilas, P.C. represents consumers nationwide in credit reporting litigation. Whether you’ve already disputed the error or have only recently discovered it, our attorneys can evaluate your situation and determine whether you may have a legal claim.

Your case review is free, and if you do have a case, there is no out-of-pocket cost to you. GET A FREE CASE REVIEW

Can MOHELA Cause Errors on My Credit Report?

MOHELA, the Missouri Higher Education Loan Authority, services student loans and furnishes account information to consumer reporting agencies. When that information is inaccurate, it can create serious problems for borrowers.

Common student loan credit reporting errors may include:

• Duplicate student loans: The same loan appears more than once with outstanding balances, making it look like you owe more than you actually do.
• Incorrect loan balances: Your credit report shows an amount that does not reflect your actual student loan balance.
• False late payments: Payments are reported as late even though they were made on time or were not due.
• Incorrect delinquency or default status: A loan is reported as delinquent or in default when that status is inaccurate.
• Servicing transfer errors: Loans transferred between servicers continue reporting incorrect balances, account statuses, or payment histories.
• Paid-off loans showing balances: Loans that have been paid in full continue to appear with outstanding debt.
• Incorrect reporting after consolidation or discharge: Your credit report does not accurately reflect changes to your loan obligations.

Not every unfamiliar account or negative entry is necessarily inaccurate. For example, an old loan may legitimately remain on your credit report after a servicing transfer. The concern is whether the information being reported accurately represents your obligations and payment history.

Why MOHELA Student Loan Reporting Errors Happen

Student loans frequently change servicers, and each transfer involves moving account information from one company to another. During this process, balances, payment histories, and account statuses must be recorded and reported accurately.

Problems can arise when an account is not properly updated, a previous servicer continues reporting an outstanding balance, or payment information is incorrectly transferred.

A 2024 U.S. Senate investigation found that problems involving transfers from Nelnet to MOHELA contributed to nearly two million duplicate student loan records appearing on consumers’ credit reports.

More than 200,000 borrowers were affected, and thousands experienced reductions in their credit scores.

Other errors may arise from inaccurate account updates, administrative mistakes, or failures to properly investigate disputed information.

Regardless of how the error occurred, consumers should not have to bear the financial consequences of inaccurate credit reporting.

How Inaccurate MOHELA Reporting Can Affect You

A student loan reporting error can cause more than frustration. It may affect important financial decisions and opportunities.

For example:

• A duplicate loan balance may make your debt-to-income ratio appear higher when applying for a mortgage.
• An incorrectly reported late payment may lower your credit score.
• A false default status may affect your ability to qualify for financing.
• Inaccurate account information may result in higher interest rates or a denied credit application.

You may not discover the error until a lender reviews your credit report or you receive an unexpected credit denial.

If inaccurate MOHELA reporting has caused financial harm, get a free case review.

Can You Sue MOHELA for Inaccurate Credit Reporting?

The Fair Credit Reporting Act provides protections for consumers whose credit reports contain inaccurate information.

Companies that furnish information to credit reporting agencies have legal responsibilities concerning the accuracy of the information they report.

When a consumer disputes inaccurate information through a credit bureau, the furnisher may be required to conduct a reasonable investigation, review relevant information, and correct inaccurate reporting.

If MOHELA fails to meet applicable obligations under the FCRA, legal action may be possible.

What Should You Do If MOHELA Is Reporting Incorrect Information?

If you discover inaccurate MOHELA information on your credit report, consider keeping copies of:

• Credit reports showing the inaccurate information
• Student loan statements and payment records
• Notices of servicing transfers
• Correspondence with MOHELA or previous loan servicers
• Any disputes you’ve submitted and responses you’ve received
• Loan denial letters or other documentation of financial harm

These records can help establish what was reported, why the information may be inaccurate, and how the error affected you.

Experienced FCRA Attorneys Representing Consumers Nationwide

Francis Mailman Soumilas has spent decades representing consumers in litigation involving inaccurate credit reports and violations of the Fair Credit Reporting Act.

We understand how credit reporting errors occur, the obligations imposed on credit reporting agencies and furnishers, and the harm inaccurate information can cause.

If MOHELA has reported inaccurate information about your student loans, assert your rights.

Whether you’ve already disputed the error or are just discovering the problem, our attorneys can evaluate your situation.

Your case review is free, and if you have a case, there is no out-of-pocket cost to you.

Contact Francis Mailman Soumilas, P.C. today to learn more about your potential legal options.

Call 1-877-735-8600 or complete our Free Case Review form.