Consumer complaint received 2025-12-18 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA
State: TN

Complaint narrative:
I am requesting a full investigation into my private student loans originated by XXXX XXXX, transferred to XXXX, and now serviced by MOHELA - due to predatory lending, improper forbearance steering, failure to disclose critical information, and abusive interest practices that have caused my loan balance to more than double. In XXXX, when these loans were originated, I was XXXX XXXX XXXX and living in California. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX ) representatives came directly into my high school classroom to recruit students. They marketed XXXX as prestigious, competitive, and a guaranteed path into the fashion industry. As a XXXX  with no financial literacy, no finance education, and no adult guidance in the loan process, I was pressured into enrolling and signing high-interest private loans that I could not possibly understand at that age. I co-signed these loans with my father and was approved for XXXX XXXX XXXX  of dollars in private debt at extremely high variable interest rates ( one as high as 15.625 % ). The risks and long-term financial implications of these loans were never explained to me in clear or comprehensible terms, especially considering that I was still under XXXX. I withdrew from XXXX before completing my first year due to XXXX XXXX XXXX  struggles and a XXXX XXXX that occurred during that same period ( not connected to XXXX  or its affiliates ). This trauma significantly impacted my XXXX XXXX, my academic performance, and my ability to understand or manage financial obligations. At that time, I was extremely vulnerable and in no position to navigate complex financial decisions. As soon as XXXX learned I could not afford payments, they immediately placed me into forbearance, presenting it as my only option. Over the following years, I was repeatedly steered into forbearance during phone calls rather than being offered any sustainable repayment plan. I now understand this practice, forbearance steering, is the same misconduct for which XXXX was sued by the CFPB and XXXX state attorney generals. During these years of servicer-directed forbearance, I was never told : That interest would capitalize repeatedly, That my principal would barely decrease, That my balance would increase dramatically, or That forbearance was not a long-term repayment solution. Because of this steering, a loan that originated with approximately {$42000.00} in principal has ballooned to over {$100000.00}, almost entirely due to interest accrued during periods of unnecessary forbearance. Most communication with XXXX during this time occurred via recorded phone calls, not in writing, and I was not provided with clear explanations of consequences. Despite everything, I have consistently worked to resolve this debt. I have paid {$33000.00} to date ( including {$26000.00} in interest alone ). I am currently making full monthly payments of over {$1000.00} per month, yet the balance barely moves due to the excessive interest caused by the servicer 's misconduct. My father, who co-signed these loans, has also been harmed financially and subjected to credit risk throughout this process.

Company response to consumer: Closed with explanation