Consumer complaint received 2026-04-10 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Struggling to repay your loan — Problem with forgiveness, cancellation, or discharge
Company: MOHELA
State: UT

Complaint narrative:
My name is XXXX XXXX and I am reaching out to request legal assistance regarding a complex and urgent student loan situation involving XXXX for-profit institutions, an approved Borrower Defense discharge that does not appear to have been applied to my account, and a loan consolidation that I believe is complicating resolution. Here is a summary of my situation : XXXX. SCHOOLS ATTENDED I attended the University XXXX XXXX and later transferred to XXXX University ( University XXXX XX/XX/XXXXXXXX XXXX ), where I graduated with a XXXX XXXX XXXX degree. XXXX. LOAN CONSOLIDATION At some point, all of my federal student loans from both institutions were consolidated I believe this happened automatically without my full understanding of the consequences. This consolidation combined loans from both schools into what is now a single balance currently serviced by MOHELA. XXXX. APPROVED BORROWER DEFENSE DISCHARGE XX/XX/XXXX I was approved for a Borrower Defense Loan Discharge related to my attendance at XXXX XXXX XXXX According to my studentaid.gov account, the discharge shows a status of Completed and reflects a {$25000.00} discharge applied to older XXXX XXXX loans from XXXX. However, this {$25000.00} discharge does not appear anywhere on my current MOHELA account balance, and I have no documentation confirming it was actually removed from what I owe. My current outstanding balance with MOHELA remains approximately {$98000.00} across XXXX loans. XXXX. PENDING BORROWER DEFENSE CLAIM UNIVERSITY XXXX XXXX I have also submitted a separate Borrower Defense claim for my loans related to the University XXXX XXXX. This claim is still pending. XXXX. MOHELA REPAYMENT NOTICE Despite the approved discharge and the pending claim, I recently received a Repayment Schedule Notice from MOHELA dated XX/XX/XXXX showing a new monthly payment of {$220.00} beginning XX/XX/XXXX, escalating to {$990.00} per month starting XX/XX/XXXX on what I believe should be at least partially XXXX debt. XXXX. FSA OMBUDSMAN CASE FILED I filed a case with the XXXX XXXX XXXX Ombudsman on XX/XX/XXXX regarding the discharge not being reflected on my account and requesting my remaining loans be placed on an Income-Driven Repayment plan. As of today I have not received a resolution. My key concerns are : The approved {$25000.00} discharge does not appear to have been applied to or reflected in my current balance The automatic consolidation of loans from both schools may have negatively impacted my discharge eligibility I am being asked to begin repayment on debt that should be fully or partially XXXX I have a second pending claim for University XXXX XXXX that may also qualify for discharge I am a XX/XX/XXXX in XXXX, Utah and I can not afford to make payments on debt that I believe I am legally entitled to have XXXX. I am requesting legal assistance to compel MOHELA and the Department of Education to properly process my approved discharge, address the consolidation issue, and advocate for resolution of my pending University XXXX XXXX XXXX. I am happy to provide documentation including my approval letter,XX/XX/XXXX account screenshots, MOHELA repayment notice, and Ombudsman case information.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation