Consumer complaint received 2025-11-28 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: CA

Complaint narrative:
Company : MOHELA ( XXXX Higher Education Loan Authority ) Product : Private Student Loan Issue : Incorrect information on my loan / problem with loan balance, interest, or fees/ problem with applying payments WHAT HAPPENED I am filing a complaint regarding XXXX private student loans that were originated in Illinois in XXXX and are currently serviced by MOHELA on behalf of XXXX XXXX XXXX XXXX. The loans have followed a repayment pattern that appears mathematically impossible, predatory in structure, and inconsistent with accurate servicing practices. 

I originally borrowed {$11000.00}. 
I have paid {$17000.00} toward these loans. 
Despite this, only {$3000.00} has been applied to principal. 
More than {$22000.00} has been charged as interest. 
My current combined balance still exceeds {$22000.00}. 

These numbers show that even after repaying more than the amount originally borrowed, my loan balance has increased instead of decreasing. This suggests improper interest calculation, misapplication of payments, excessive capitalization, or servicing errors that require investigation. 

The interest rates on these loans are XXXX XXXX XXXX XXXX % variable, which are the same types of subprime private student loans identified as predatory in multiple state and federal enforcement actions, including : Illinois Attorney General XXXX XXXX ( XXXX ) CFPB XXXX XXXX ( XXXX ) XXXX Multi-State XXXX  Settlement These cases documented widespread issues including the issuance of high-interest private loans with low likelihood of repayment, unexplained capitalization, deceptive disclosures, and failures to properly apply payments. The repayment pattern of my loans mirrors the exact conduct described in those enforcement actions. 

To date, MOHELA has not provided : A full accounting or reconstruction of interest accrual A timeline of capitalization events Copies of original variable-rate disclosures TILA disclosures Original promissory notes Any explanation for how a borrower can repay more than principal but owe nearly double Because these loans originated in XXXX during the same predatory lending period noted in state and federal lawsuits, I am concerned that the loans may have been illegally originated, improperly serviced, or miscalculated, resulting in ongoing financial harm. 

I have attempted to request a review directly from MOHELA, but I have not received a clear or adequate explanation. 



WHAT I WANT MOHELA TO DO I am requesting that MOHELA be required to : 1. Conduct a full forensic accounting review of both loans, including all interest accrual, rate changes, capitalization events, and payment applications from origination to the present.

2. Provide all original documentation, including promissory notes, Truth in Lending Act disclosures, variable-rate disclosures, and any repayment projections provided at origination.

3. Correct any errors in interest, capitalization, payment application, or balance calculation.

4. Refund all improperly charged interest, including interest added due to misapplication, capitalization, or servicing practices inconsistent with law or contract. 
5. Eliminate or discharge the remaining balances, given that : I have already repaid more than the principal borrowed, the balances have increased rather than decreased, the loans match the predatory loan categories identified in prior CFPB and AG litigation.

6. Provide written clarification regarding MOHELAs authority and the loan owners position on correcting or discharging loans that were predatory or improperly serviced. 



WHY I AM REQUESTING CFPB ASSISTANCE The repayment behavior of these loans is not consistent with fair, transparent, or lawful lending practices, and it closely aligns with misconduct already documented by the CFPB and multiple attorneys general against XXXX. 

I am requesting CFPB assistance because : This appears to be a predatory lending structure that violates federal consumer protection standards. 
The servicer has not yet provided the necessary documentation, accounting, or correction. 
I have already paid more than the amount borrowed yet owe significantly more today. 
I can not resolve this with MOHELA alone. 

Thank you for reviewing my complaint and helping ensure that these loans are corrected, refunded, or discharged as appropriate. 

Submitted by : XXXX XXXX

Company response to consumer: Closed with explanation