Consumer complaint received 2026-04-08 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: MOHELA
State: FL

Complaint narrative:
This compliant is in regard to the XXXX vs Mohela settlement and private XXXX loans from XXXX. In the settlement agreement, DOE has purposefully excluded private XXXX loans from any type of refund due to those loan payments not being made directly to the DOE, however, I am entitled to settlement relief of getting my loans discharged by XXXX-Mohela ( originally XXXX XXXX XXXX XXXX to Mohela ) within the next year. I received my initial letter from the DOE acknowledging that I fell into post class due to my XXXX XXXX Application being submitted during that applicable time ( after XX/XX/XXXX - XX/XX/XXXX ) on XX/XX/XXXX and finally received the follow-up letter from DOE XX/XX/XXXX XXXX cut-off date in the agreed upon settlement was XX/XX/XXXX ) entitling me 1. Discharge of relevant federal student loans 2. Refund for any payments made to XXXX on relevant Fed student loans, including relevant Fed student loan debt that was previously paid off 3. Deletion of the credit report tradeline associated with the discharged loans. However, they proceeded to explain that XXXX loans held by XXXX would be eligible for refund, but XXXX program loans held by a private or commercial lender ( such as XXXX ) would not be eligible for a refund. As with everything else in my life, I've tried to be proactive and start having these conversations with not only my loan servicer XXXX-Mohela, my private lender XXXX, and the DOE ( via email, phone, complaints, and feedback cases ). DOE keeps redirecting me to my servicer, and my servicer directs me to DOE. DOE has made it very clear they do not want to help me or entertain this conversation during multiple attempts, and my servicer does not want to take accountability of refunding me any payments that I have made on my loans over the past 20 years. As stated in the communication from the DOE " The payments on XXXX program loans go to that bank, not to XXXX. XXXX can not refund loan payments that it did not receive. '' This does not state that my servicer ( who is not XXXX ) or my bank lender ( who is not XXXX ) would not ultimately ad help accountable to be refunding my already paid amount. Both Servicer and Lender do not want to help in any kind of dispute or appeal process for this. Fact of the matter, I have paid out on these loans and if they are discharged ( no longer in existence ) then receivables would remain positive for the Servicer and Lender without having any loans to pay off anymore. There would be nothing those payments would be going to other than in their pockets free of charge at my expense. I am deeply upset and disappointed across the board that because this loan type was offered to me back in XXXX and decided to be discontinued by DOE XXXX years later. We have been completely neglected and are a small population of people being robbed at this point. My Servicer at no point offered me advice about consolidating my loans into direct loans to be applicable for a refund in a situation like this. Every time that I had called about my XXXX XXXX Application and talked a rep from XXXX or Mohela about the XXXX XXXX XXXXXXXX ( now XXXX XXXX Mohela ) lawsuit, 99.9 % or reps had no idea that there was even a lawsuit going on and offered no help at all. I was protective of my loans and was very cautious in any attempts at changing or updating anything as it was because of all the mis information that had been circulating for quite some time- hence why the settlement was won in the first place. I'm looking for support/guidance as to how I can further pursue getting my refund for my loans that have discharged by my Servicer or Lender because I am owed that money due to my payments that show on my DOE portal to these entities. Thank you for your help, and I am hopeful I will get answers/refund at my own perseverance.

Company response to consumer: Closed with explanation