Consumer complaint received 2025-07-29 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: GA

Complaint narrative:
I am a XXXX XXXX XXXX. My time in service was from XXXX XX/XX/XXXX until XXXX XX/XX/XXXX. I served honorably for XXXX  years as a XXXX XXXX XXXXXXXX ( XXXX XXXX ) and did XXXX years as a XXXX XXXX at XXXX XXXX XXXX from XXXX to XXXX. I transitioned out in XXXX from XXXX XXXX, KY as a XXXX XXXX ( SSG ) due to wishing to spend more time with family. Upon my XXXX in XX/XX/XXXX, I had utilized the Benefits Delivery at Discharge ( BDD ) program and received XXXX % XXXX XXXX XXXX XXXXXXXX from the XXXX  dated XXXX XX/XX/XXXX. 
Prior to joining the XXXX, I had been going to college and could not pin down a degree. I had multiple student loans through the servicer XXXX XXXX from XXXX to XXXX totaling approximately {$65000.00}. When I enlisted in the XXXX in XX/XX/XXXX in the delayed entry program, I waived my enlistment bonus in order to receive payment towards my student loans. The XXXX sent {$10000.00} ( minus taxes ) after each year of enlistment for XXXX years. During that time, I was in repayment but unable to make the monthly payment. The monthly payment back then was close to or above {$600.00}. I was only a XXXX XXXX XXXX ( XXXX ) back in XXXX making {$1700.00} per month before taxes. I already had a monthly payment for my vehicle, insurance, gas, groceries, etc. Not fully understanding what it meant, I was deferring my payments with XXXX XXXX due to FORBEARANCE. So basically, the XXXX made an ( substantial ) annual payment, and then XXXX XXXX turned around and capitalized all of the interest all over again because I could not make the monthly payment. Which basically negated the payments the XXXX was making on my behalf. After a few years, once I became higher ranking, I was able to start making payments towards my student loans to XXXX XXXX. 
After I transitioned out of the XXXX, I saw in the paperwork I may be eligible to have my student loans discharged due to my XXXX XXXX XXXX XXXX XXXX XXXX from the XXXX My interest rate was now variable, no longer protected at XXXX  % under the XXXX XXXX and immediately began to rise, which raised my monthly payments. My monthly payments were already going from about {$550.00} to over {$600.00} within just a few months. I called XXXX XXXX in XXXX of XXXX ( now Navient or XXXX ) and let them know about my XXXX from the VA and requested a discharge. I was told by the representative that if I requested a XXXX discharge, then the co-signer of my loans would be held responsible for the balance of my loans ( not that they couldn't discharge them ). My father was my co-signer for all of my student loans, and I did not think that was right to make my father have to re-pay them when they were supposed to be discharged. I asked what else I could do, as I would be unable to continue to make payments as they continued to increase my interest rate/monthly payment. I asked if I could at least consolidate or do something that would change it to a fixed interest rate. The representative told me that they had nothing to offer me, and that I would HAVE to use a different student loan servicer to refinance my loans. 
XX/XX/XXXX I applied for a refinance/consolidation loan through XXXXXXXX XXXX XXXX XXXX XX/XX/XXXX a payment in the amount of {$55000.00} was made to XXXX to pay off my XXXX student loans I had with them. Then, on XXXX XX/XX/XXXX XXXX  sent me letters stating they had received the letter from the VA about my XXXX % T & P XXXX ; and, that they were discharging ALL XXXX loans. I called XXXXXXXX XXXX and asked if XXXX had returned the check since they had XXXX my loans, and XXXXXXXX XXXX said they had not. XXXXXXXX XXXX continued to tell me there was nothing they could do until XXXXt returned the money. I called Navient numerous times requesting they send the check back to XXXXXXXX XXXX, since they clearly accepted the money and XXXX the loans. Navient sent XXXX check back totaling $ XXXX {$7000.00} and that was it. They continued to tell me it was XXXXXXXX XXXX  issue now that would have to discharge my student loans. 
The XXXX paperwork clearly states XXXX was supposed to pay me back the payments I made from XX/XX/XXXX to XX/XX/XXXX and never did. I also wouldn't have had a problem with continuing paying my student loan payments if Navient hadn't tried to tell me my co-signer would be held responsible for repayment if I pursued my XXXX discharge. But they accepted a full payment and then still say they discharged my loans ( a MONTH after accepting payment ), after telling me I HAD to refinance with a different servicer. I have been in a battle back and forth with both servicers and both refuse to do anything. I have hired a lawyer to help, but I have had to put that on credit card which I do not like to do. My lawyer so far is getting the same run around and he has been at this since XX/XX/XXXX. I am reaching out to you in hopes you can help correct this error. I believe Navient was intentionally telling customers that they would go after the co-signer if we pursued a disability discharge and intentionally telling customers to refinance through a different lender. I believe they did this intentionally so they could still get paid but make it seem like they did the right thing, after the fact, by discharging the loans. I am not sure why they would feel the need to send me a discharge letter a whole XXXX  after accepting a full payout from XXXXXXXX XXXX, when they knew months prior about my disability.

Like I said before, I have no problem paying my debts. But I can not stand when companies take advantage and are clearly deceitful in order to make more money off of those who serve this country and/or are disabled. I have continued to pay my loan with XXXXXXXX XXXX monthly, but am hoping I can find a way to have Navient refund the full payment to XXXXXXXX XXXX like it should have been from the beginning. Navient did send XXXX payment back to XXXX XXXX but for some reason refused to refund the full amount to XXXXXXXX XXXX. I have attached full documentation as evidence and to show everything I have stated in this document is true. I have tried reaching back out to get copies from my time in service to show my payments and the payments the XXXX made on my behalf. As well as, the copies of them turning around and capitalizing all the interest. For some reason, they refuse to provide the documentation and again keep giving me excuses. They also say I can log in and print them myself, but I have been unable to login sincXXXX XXXX XXXX XXXX XXXX 

Despite them changing their name constantly, it is clear this company does not participate in ethical business practices. XXXX XXXX, Navient, now MOHELA. Every one has been sued and ordered to pay out large sums of money. This company needs to be shut down altogether, and has no business servicing student loans, or any loans for that matter!

Company response to consumer: Closed with explanation