Consumer complaint received 2025-04-22 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Problem with customer service
Company: MOHELA
State: IN

Complaint narrative:
I have around {$17000.00} in private loans through XXXX now being serviced by Mohela. I am being denied that these be forgiven even though the loans were with XXXX XXXX XXXX. XXXX was found to be misleading students and even committing fraud leading to several lawsuits and the school being forced to close down. This is a massive known case but Mohela and XXXX, whom the loans are still under, are refusing to forgive the private loans. In my initial claim to Mohela they said I was eligible for Private loan forgiveness under a School Misconduct discharge. One I filed the paperwork I received a notification that I was not eligible with no reason given. Just " not eligible ''. I fail to see how I am not eligible with all the nationwide attention of what XXXX was doing. I was told these were only Federal loans only to find out XXXX took upon themselves to take out Private loans when the federal loans would not cover the cost of my courses. This is widely documented this was being done by XXXX. I have links to articles and cases for this. Including Government representatives. 

XXXX XXXX XXXX? utm_source=chatgpt.com https : XXXX? utm_source=chatgpt.com https : XXXX The FTC 's 1976 Holder rule also applies to this. This rules holds lenders like XXXX accountable for financing schools that misled students and committed fraud. It is well documented that XXXX lied about job placement rates and salaries. The XXXX XXXX is legal defense against repayment. This is an article from former XXXX employees talking about this themselves and what they were doing. 

https : XXXX? utm_source=chatgpt.com After my first claim was refused by Mohela, I submitted a second School Misconduct Discharge form with additional information. Mohela did not even review it this time and denied it saying I did not get anymore chances. I believe Mohela, along with XXXX is just blindly denying School Misconduct Discharge forms. They are hoping that mislead and frauded barrowers just give up and are forcing them to get attorneys. They know most can not afford attorneys in part of what ITT has done to them and their future and the money they still owe XXXX. 

I myself have spent over a decade of financial hardship due to this fraud. My diploma I received from XXXX is worth less than the paper it is printed on. All positions in my professional field require some kind of higher education. I have always had to start at the bottom when I move jobs and never able to get a high paying position. My grades from XXXX are not transferable and not recognized by any respectable institution of higher learning. This meaning I would have to start all over again. Which I am unable to do because of how these loans over the years have affected my credit and I am unable to attend school again because I have to have full time employment just to pay the minimum balance that does not even make dent in the principle balance. In fact I owe more since paying on them and being out of school than I did when the loans originated.

Company response to consumer: Closed with explanation