Consumer complaint received 2024-12-17 00:00:00
Product: Student loan — Private student loan
Issue: Struggling to repay your loan — Can't temporarily delay making payments
Company: MOHELA
State: TX

Complaint narrative:
To Whom It May Concern : I am writing to formally request the forgiveness and relief of my private student loan obligations originated through XXXX XXXX, as well as to request the removal of my former co-signer from these loans. The circumstances under which these loans were taken out were not only predatory, but also detrimental to my long-term financial and educational well-being. 

1. Predatory Lending Practices : When I entered into these loan agreements in XXXX and XXXX I was a young borroweronly XXXX and XXXX XXXX XXXX both the financial literacy and life experience to fully grasp the nature and long-term consequences of these obligations. XXXX XXXX  approved these substantial loans without properly verifying my ability to repay. The loans were marketed as a necessary means to cover educational expenses and were presented in a manner that minimized both the significant risks and the long-term costs involved. 

At that time, private lenders often engaged in practices that were tantamount to exploitation of young students, including offering loans at high interest rates and not providing adequate disclosure about how quickly interest would accrue or what repayment would look like in the years ahead. The information made available to me as a borrower was incomplete and, in many respects, misleadingleading me to assume a burden that was neither reasonable nor properly explained. 

2. Lack of Benefit to Educational Completion : These loans did not serve their intended purpose. Due to insufficient financing in my later college years, I was forced to leave school without completing my degree at that time. Far from helping me achieve academic success and future stability, these loans derailed my path. Instead of enabling a timely graduation, they created financial hardship that prevented me from securing the resources needed to finish my initial attempt at earning my degree. It was not until several years later, independent from these initial loans, that I was able to return and complete my education. Essentially, the funds did not fulfill the fundamental promise of improving my long-term educational and financial prospects.

3. Significant Payments Already Made : Over the years, I have made tens of thousands of dollars in payments towards these debts. Despite this substantial financial outlay, the remaining balance continues to place an undue strain on my finances. It is critical to recognize that I have demonstrated my commitment to repaying these obligations to the best of my ability, even under disadvantageous terms. My history of payments clearly indicates good faith on my part. However, the original terms were never equitable, and the burden continues to grow disproportionately to any initial benefit I received. 

4. Removal of the Co-Signer : The individual who co-signed the loans was not a family member but rather an empathetic adult who stepped in at a time when I, a young and inexperienced student, required support. Over time, this individual has had no ongoing relationship or communication with me, and it is fundamentally unfair that they remain tied to these predatory loans. They should not continue to carry the burden of these debtsparticularly under the knowledge that the loans themselves were approved without proper safeguards, transparent disclosures, or realistic assessments of my ability to repay. 

5. Ethical and Reputational Considerations for the Lender : Private lenders have come under increased scrutiny in recent years for their lending practices to young, financially inexperienced students. The ongoing accountability efforts in the student lending market recognize that not all debts were incurred under fair and transparent conditions. Relieving me of these loans and releasing my co-signer from any further obligation would be consistent with current efforts to ensure fairness, equity, and consumer protection in the student lending industry. This action would also demonstrate the lenders commitment to ethical lending standards and a recognition of the undue hardship these loans have inflicted. 

Conclusion : Given the predatory nature of the initial loan issuance, the lack of benefit I ultimately derived as a student borrower, the substantial payments already rendered, and the unfair burden currently placed on a co-signer who is no longer in my life, I respectfully request full discharge of the remaining loan balance and immediate release of my former co-signer from any responsibility. Doing so would remedy a profound injustice, allow me to move forward toward true financial stability, and align the lenders approach with contemporary standards of fairness and ethics in student lending practices. 

Thank you for your time, understanding, and careful consideration of this request. I look forward to a just and equitable resolution. 

Sincerely, XXXX.

Company response to consumer: Closed with explanation