Consumer complaint received 2026-03-09 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: FL

Complaint narrative:
I am submitting this complaint regarding the denial of my School Misconduct discharge request by MOHELA related to private student loans used to attend XXXX XXXX XXXX XXXX XXXX XXXX Florida. In XXXX, at XXXX XXXX XXXX, I enrolled in the XXXX XXXX program at XXXX XXXX XXXX The program was heavily marketed as a pathway to a high-paying medical career. Admissions representatives promoted strong job placement and stated that graduates could expect to earn approximately {$80000.00} per year. These statements were presented as realistic and common outcomes for graduates of the program. Based on these representations, I believed the program would provide financial stability and a clear professional path. The program required extensive full-time attendance and clinical externship hours, which made it extremely difficult to maintain full-time employment while enrolled. Because federal aid options were limited at this for-profit school, the school directed students toward private loans. I was told that taking out private loans would not be a problem because the expected salary after graduation would allow the loans to be easily repaid. Relying on these representations, I obtained private student loans through XXXX XXXX with the help of co-signers, including my grandmother and my boyfriend at the time. The loans were approximately {$9000.00}, {$9000.00}, and {$15000.00}, totaling about {$33000.00}. I completed the program and graduated in XXXX, followed by a required six-month externship while also working at a hospital in order to support myself and prepare to begin loan repayment. During this time, I was informed that employment in the field required passing certification exams. I attempted the exam but did not pass. Without the promised job placement or salary outcomes described during enrollment, I was forced to accept employment paying approximately {$15.00} per hour. Once repayment began, my monthly loan payments were approximately {$400.00} {$500.00}. At that income level, these payments made it impossible for me to live independently. I was unable to qualify for housing, car loans, or other basic financial necessities and was forced to move back home with my family in order to survive financially. For years I continued making payments while earning less than {$35000.00} annually. The financial pressure and stress caused by these loans significantly affected my ability to move forward with major life milestones. In XXXX, after nearly a decade of repayment, I decided to return to school to try to improve my financial situation. When attempting to obtain transcripts from XXXX XXXX XXXX I discovered that the school had closed. I had never been notified of the closure or provided any career placement support after graduating. After obtaining my transcripts through the state, I submitted them to a local community college. I was informed that none of my XXXX credits were transferable. This meant the education I had been paying for over the previous ten years was effectively unusable. As a result, I had to start my college education over entirely from the beginning. I ultimately returned to school and completed a XXXX XXXX from the University of XXXX in XXXX at the age of XXXX, but I was forced to take on approximately {$35000.00} in additional student loan debt because the XXXX education could not be applied toward a legitimate degree. Over the past 16 years, I have paid approximately {$29000.00} toward my private student loans. Despite this, my balance has increased to approximately {$55000.00} due to interest and capitalization. The loans were originally approximately {$33000.00}. The financial consequences of this situation have been severe and long-lasting. Because of my debt-to-income ratio caused by these loans, I still can not qualify for a home loan or reasonable vehicle financing. I am now XXXX XXXX XXXX and still dealing with the financial consequences of an education that provided no transferable credit and did not lead to the promised career outcomes. XXXX XXXX has been associated with numerous investigations and lawsuits related to misleading job placement claims and deceptive practices at for-profit schools. These are the same types of representations that influenced my decision to enroll and borrow. I submitted a School Misconduct discharge request to MOHELA in XX/XX/XXXX requesting relief due to these circumstances. My request was denied, and my appeal was also denied on the basis that I did not demonstrate sufficient harm. However, the harm in my case is clear. I relied on representations about job placement and salary outcomes when enrolling and taking out private loans. The education ultimately did not transfer, the promised career outcomes did not materialize, and I have spent more than 16 years repaying loans for an education that provided little to no practical value. I am requesting that the Consumer Financial Protection Bureau review MOHELAs handling of my School Misconduct discharge request and the denial of my appeal. Given the documented issues associated with XXXX XXXX and the substantial financial harm I have experienced, I believe this case warrants further investigation and reconsideration.

Company response to consumer: Closed with explanation