Consumer complaint received 2025-09-04 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Problem with customer service
Company: MOHELA
State: NC

Complaint narrative:
Our daughter, XXXX XXXX, passed away on XX/XX/XXXX, at the age of XXXX due to an extremely rare XXXX XXXX. It was truly a tragic loss for our family and our community here in XXXXXXXX XXXX XXXX. Over XXXX people attended her Celebration of Life at XXXX XXXX XXXX in XXXX where she was a XXXX XXXX XXXX XXXX XXXX 
We have been greatly heartened by the outpouring of love and support for XXXX, with one exception : XXXX XXXX and their loan servicer Mohela who have shown a pattern of shocking indifference to this situation. 
XXXX education was partially funded by student loans. The Department of Education and XXXX XXXX both forgave the remaining balances on their loans within a few weeks of her death, as they are supposed to do. XXXX XXXX Mohela, on the other hand, has steadfastly refused to forgive the remaining balance on their loan. We would very much appreciate your help ensuring they do what they are supposed to do. 
I have spoken with XXXX XXXX servicer, Mohela, many times. Their customer service people readily and repeatedly assure me that this loan should be forgiven. However, when our case is escalated to make that happen, it is denied. 
I have spoken with XXXX XXXX the only name she would give ), supervisor on the client advocacy team at Mohela several times. This was after several earlier conversations with Mohela customer servicer where I was assured action would be forthcoming but each time, when I followed up, my inquiry appeared to have been lost. XXXX told me that she did escalate the matter to XXXX XXXX but that they refused without an explanation. 
The XXXX XXXX Mohela loan was secured to refinance XXXX of XXXX XXXX XXXX loans. XXXX XXXX Mohela customer service has repeatedly assured me that they can and do forgive balances in these circumstances as long as their loan was for the benefit of XXXX and all proceeds went to refinance other loans in her name. I encourage you to obtain the recorded conversations. 
XXXX XXXX Mohela acknowledges that their records show that the loan was for XXXX benefit and that all proceeds went to pay off XXXX XXXX XXXX loans in her name. XXXX XXXX own XXXX Report, obtained from their website and included with this letter, indicates that the loan is eligible for discharge due to death. 
I have also attached documents that establish the XXXX XXXX loan number XXXX originated on XX/XX/XXXX, in the amount of {$96000.00} and that XXXX XXXX XXXX loans numbered XXXX, XXXX, and XXXX totaling that amount were paid off by XXXX XXXX on XX/XX/XXXX. 
I have highlighted the most relevant sections of the included documents for your convenience. I have also included XXXX death certificate. 
I have attempted to turn off the automatic payments on the loan although I notice that the automated payments will resume automatically the following month. I see no way of turning them off permanently. That is also concerning. 

Mohela is the servicer of the loan. XXXX XXXX is a subsidiary of XXXX. The decision-makers at XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX and CEO XXXX XXXX XXXX Tel : XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXXXXXX Tel : XXXX Mohelas contact information is : Mohela XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX : XXXX On behalf of XXXX, our family XXXX and any other families mistreated by XXXX XXXX and Mohela , we very much appreciate the assistance of your office in resolving this matter. In our case, we are looking for the discharge of the remaining balance on the loan as should be done in tragic circumstances like this. 
Thank you very much, XXXX XXXX

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation