Consumer complaint received 2025-03-27 00:00:00
Product: Student loan — Private student loan
Issue: Struggling to repay your loan — Can't get other flexible options for repaying your loan
Company: MOHELA
State: FL

Complaint narrative:
I am writing to formally dispute the validity of a private student loan issued in connection with my attendance at XXXX XXXX XXXX  XXXX XXXX XXXX XXXX ( XXXX ), a campus affiliated with The XXXX XXXX. I attended XXXX from XXXX to XXXX, graduating with a degree in XXXX XXXX. At the time of my enrollment, I was misled by the institution 's marketing and admissions staff, who made repeated assurances about the job placement rate and expected salaries in the field of graphic design. These representations were a material factor in my decision to enroll and take on nearly {$40000.00} in private student loan debt. Specifically, I was told that graduates of the program typically secured jobs in their field shortly after graduation with salaries in the $ XXXX {$60000.00} range. However, after graduation, I discovered that no structured job placement support existed and available job opportunities were either nonexistent or paid far below what had been promised. Many graduates, including myself, struggled to find work in our field, and this outcome was common across cohorts - not an isolated experience. It has since come to light that The XXXX XXXX engaged in widespread deceptive practices during this time period. The XXXX Department of Education, Federal Trade Commission, and multiple state attorneys general have taken enforcement actions and legal proceedings against the schools and their parent organizations ( including XXXX and XXXX XXXX XXXX XXXX ) for fraudulent and predatory conduct. 

- In XXXX, XXXX agreed to a {$95.00} XXXX federal settlement for illegal recruiting and deceptive advertising practices. 
- In Sweet v. XXXX, the Department of Education acknowledged " substantial misconduct '' at institutions including The XXXX XXXX, resulting in full federal loan discharges for affected borrowers. 
- The XXXX Institutes were also the subject of state and federal investigations confirming misleading claims about job outcomes, program quality, and financial aid options. 

These findings confirm that I, like many others, was deceived into taking out debt based on false promises. I am requesting that you discharge or forgive the full balance of my private student loan, or propose an alternative resolution such as settlement or cancellation of remaining principal. 

In addition to the misconduct committed by XXXX XXXX University XXXX XXXX XXXX XXXX ( XXXX ), I would like to highlight the role of both Navient and MOHELA in the continuation of predatory and unjust lending practices related to my private student loan. 
XXXX, the original lender or loan servicer in my case, has a documented history of engaging in predatory lending practices, particularly targeting students at for-profit institutions like MIUAD.Multiple lawsuits and investigations revealed that XXXX steered XXXX into private loans that it internally recognized were likely to default. Despite knowing the high risk and low job placement outcomes for students, XXXX issued high-interest loans to thousands of borrowers. 
In XXXX, XXXX reached a {$1.00} XXXX settlement with numerous state attorneys general, which included the cancellation of private loan balances for many students who attended for-profit schools, including The XXXX XXXX. Based on the public terms of this agreement, I reasonably expected my loan to be XXXX under this settlement. However, despite my eligibility, XXXX failed to honor this commitment in my case. 
Following XXXX 's transfer of loan servicing responsibilities to MOHELA, I have continued to seek resolution and relief. Unfortunately, MOHELA has similarly denied my requests for discharge based on school misconduct, despite ample evidence of institutional fraud and federal enforcement action validating these claims. 
MOHELA 's continued denial of discharge perpetuates the harm caused by both the school and the original lender. I was misled by the institution, exploited by XXXX, and now dismissed by MOHELA. I am once again requesting full discharge or settlement of my private loan, taking into account the totality of the circumstances and the repeated failures of these parties to act in good faith.

Company response to consumer: Closed with explanation