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RUNNING v. MOHELA
Welcome to Student Loan Case, your resource for learning about the pending class action lawsuit against MOHELA as well as lawsuits against other student loan servicers. Clapp & Lauinger LLP represents borrowers in lawsuits against student loan servicers like MOHELA.
Stay informed about the Running v. MOHELA lawsuit and your legal rights, which can affect your financial future.
STUDENT LOAN CASE SPOTLIGHT:
RUNNING v. MOHELA
The law firm of Clapp & Lauinger LLP, based in Carlsbad, California, has filed a lawsuit on behalf of all California residents whose student loans are serviced by MOHELA. The lawsuit alleges that MOHELA violates California law by failing to communicate with borrowers, failing to process applications for income-driven repayment plans (IDRs) and other forbearance programs, and engaging in unfair debt collection practices.
Learn about our client's fight against MOHELA and let us know if you've faced similar problems with MOHELA or other student loan servicers.
Athena's Story
Athena, a federal student loan borrower, filed a class action lawsuit against MOHELA (which stands for Higher Education Loan Authority of the State of Missouri). The lawsuit is pending in the California Superior Court in and for the County of San Diego.
Since MOHELA began servicing Athena's student loan, she has been unable to access her loan records online. Instead, MOHELA's website tells her: "We currently have no loans in our records for you." Yet each month, MOHELA withdraws more than $1,000 from Athena's bank account. Whenever Athena tries to call MOHELA, she is told the wait to speak to a representative will be 2-3 hours!
In May 2025, Athena hired a lawyer and applied for a reduction in her monthly payments. Under its servicing agreement with the federal government, MOHELA is supposed to process such requests within 15 business days. Athena is still waiting.
Meanwhile, MOHELA labeled her loan delinquent and began harassing Athena, her mother, and her 83-year-old grandfather with collection efforts. MOHELA even tried to withdraw thousands of dollars from her bank account without her permission.
Athena’s lawsuit seeks to represent thousands of borrowers who may be affected by similar practices by MOHELA.
Complaints filed against MOHELA
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Running v. MOHELA- Class Action Complaint filed July 14, 2025
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American Federation of Teachers v. MOHELA- Complaint filed July 22, 2024
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Tell Us Your Story
About MOHELA
Reddit and the Better Business Bureau have hundreds of complaints echoing the same problems Athena has had with MOHELA.
Would you like to join Athena's class action?
You can if:
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You are a California resident (or co-signer/guarantor) on a federal student loan serviced by MOHELA; and
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Within the last 4 years:
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You were unable to access your account online; or
- You applied for an IDR, loan forbearance, or other payment reduction plan that MOHELA didn't act on within 15 days; or
- You received harassing letters, emails, or calls about your student loan, or were reported to the credit bureaus, while your IDR or forbearance requests were pending.
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Meet the Team
James F. Clapp
Partner
Marita M. Lauinger
Partner
Jamie N. Herrick
Associate
Teri L. Zaayer
Paralegal