MOHELA (20% Federal Student Loan Servicer)
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One student-loan servicer handles a fifth of accounts but draws the biggest flood of complaints — and there's no better option to switch to.
Who they are
MOHELA, a federal student-loan servicer holding about 20% of accounts.
What they do
The engine uses it as proof that even within a small group of dominant servicers, quality varies sharply.
How it works
MOHELA holds 20% of accounts but generates 41% of all borrower complaints, making it the worst performer of the three majors (alongside Nelnet at 38% and Aidvantage at 25%); the engine cites this to explain why federal managers are reluctant to move accounts away from Aidvantage — there's no better-run alternative in the existing oligopoly.
Why it matters
It shows that 'three big vendors' doesn't mean three equal ones, and that borrowers are stuck inside a system where the alternatives are worse.
The engine's record — word for word
Report #86. Federal student loan servicer holding 20% account share but generating 41% of total borrower complaints — operationally the worst-performing of the three majors (Nelnet 38% / Aidvantage 25% / MOHELA 20%). The complaint-disparity is the data point Report #86 cites to explain federal-program-manager reluctance to transfer accounts AWAY from Aidvantage: there is no operationally superior alternative within the existing oligopoly. Functions as the empirical floor demonstrating that 'oligopoly' does not mean 'three equivalent vendors' — operational efficiency stratifies even within the structural-recurrence layer.
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