Consumer complaint received 2024-09-17
Product: Student loan — Federal student loan servicing
Issue: Incorrect information on your report — Account status incorrect
Company: MOHELA (UT)

My name is XXXX XXXX, Borrower Defense Application # XXXX. I haven't received my full relief which has been stated multiple times in the XXXX XXXX XXXX settlement agreement that the servers ( Mohela ) had to complete full relief by discharging my Federal student loans amount, removing my loan information from all 3 credit bureaus, and provided full refund for payment made on the life of the loans. The settlement was approved on XX/XX/XXXX. My Borrower Defense Application School : XXXX XXXX XXXX XXXX XXXX ( The ) was Approved of Borrower Defense Case Under XXXX XXXX of the XXXX XXXX XXXX  Settlement, which I received a letter and email on XX/XX/XXXX, confirming my approval for discharge of my student loans. 

The servers ( Mohela ) had to complete the request by XX/XX/XXXX. Mohela has failed to meet the agreement set out by the court. I then proceeded to file my first CFPB complaint on XX/XX/XXXX. I did not receive a response until XX/XX/XXXX, Mohela stating that on XX/XX/XXXX, MOHELA processed an adjustment to your Direct Consolidation Loans balance as a result of the underlying loans approval for discharge through Borrower Defense to Repayment. The outstanding balance of your XXXX  Direct Consolidation Loan is now {$0.00}, and a check accounting for payments applied to this loan will be issued from the U.S. Department of Treasury within approximately 90 days. As of this writing, your student loan account is current. 

Mohela processed the discharge on my two Direct Consolidation Loans on XX/XX/XXXX, and the balance has dropped to XXXX  from {$18000.00}. Mohela stated that the refund check would be issued from the U.S. Department of Treasury within approximately 90 days. This was stated by Mohela that this would be done with then this time frame. 

I contacted Mohela 's on XX/XX/XXXX, and spoke with a representative who stated the refund was also processed on XX/XX/XXXX, the same date when I received a response from Mohela on my CFPB complaint and told me to contact the borrower defense team instead to get further information about the refund check. I contacted the borrower defense and they informed me they don't have any information about the refund check and that the loan server would be the only one that would have that information. Due to the run-around. I then once again submitted a 2nd CFPB complaint against Mohela on XX/XX/XXXX, attempting to confirm further information if the refunded check has been processed, the amount of the refund as the 90-day estimate has passed and confirm that the credit report of the loan need to be completely removed by the court direction. 

Meanwhile due to the 1st settlement agreement date being missed by the servers Moheal, XXXX, XXXX, and XXXX to complete the full relief to full class members and post-class, there has been a further court hearing date on XX/XX/XXXX, held before XXXX XXXX XXXX a motion to Enforce Judgment. The Court adopted Department of Educations final proposed schedule for remedying the material breach of the settlement agreement with conditions. The court has enforced the servers for direct consolidation loans that include the sweet-related debt and have yet to receive full settlement relief, we should expect to see the full current loan balance discharged, and the department should issue a refund for all amounts we paid consolidation loan and credit reporting removed no later than XX/XX/XXXX. 

I received a response from CFPB complaint on XX/XX/XXXX, Mohela has replied that Our records indicate that MOHELA recently received confirmation of a necessary adjustment to your Direct Consolidation Loans balance as a result of your underlying loans approval for discharge through Borrower Defense to Repayment. As a result, a write-off of your loans was processed on XX/XX/XXXX, and your account now reflects a {$0.00} balance. Additionally, refunds will be initiated for any eligible payments made to your loan. MOHELA is unable to expedite this process. 

I contacted the U.S. Department of the Treasury on XX/XX/XXXX, and was informed by agent XXXX that there was no record of any check to be processed or request from Mohela for a Student loan refund of any sort. I have done my due diligence to review my Federal Student Aid website showing on my two Direct Consolidation loans showing payments made on the 1st loan for {$2600.00} and the 2nd loan for {$3600.00} a total of {$6300.00} to be refunded. I waited until the deadline of XX/XX/XXXX, which of course Mohela failed to meet the court hearing for full relief to the full-class to receive automatic relief due to the predatory schools listed on XXXX XXXX which the XXXX XXXX is part of. I have gathered further documents confirming the amount to be refunded and will provide 37 documents informing the server through the court set on a settlement agreement that servers need to provide full relief to the full-class group that I'm part of for attending The XXXX XXXX . At this moment in time, I have not received my full relief. The loan information is to be removed from the credit reporting and receive a refund for the payments made on the loan. Once more this has not been completed. Mohela has continued to breach the settlement agreement set by the court. This has gone on for 2 years 2 months and 10 days