Consumer complaint received 2025-07-12 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: AZ

Complaint narrative:
I was approved for student loan discharge for the federal loans I obtained for this school. Not only did the financial aid officer ( s ) and others at the school do all the things that have been widely reported, I feel that I have some very specific claims that no one has made. During my XXXX  at the school there were apparently XXXX instances where I didnt qualify for regular federal financial aid. I was never told of this. I was consistently told that the loan paperwork I was signing was exactly the same as it always had been and they were the same loans. No I do not have copies, nor do I have video or audio recording of these conversations ( which it seems is the only things that could help my application ). However, now Im stuck with XXXX private loans that are consistently causing not only mental health issues but physical health issues due to the stress of figuring out how to deal with them since Mohela became involved. 

When it was just XXXX in charge, my loans were in forbearment because Im in school. Im currently attending XXXXXXXX XXXX and previously I was attending XXXX XXXX. I have the opportunity to go to these schools through my work at XXXX. Since Mohela became involved they provided a private loan discharge application. Supposedly, this application is supposed to follow the same premise as the federal borrowers discharge application. Ive submitted it twice. The first time I submitted the application, I was denied for my XXXX loans based on XXXX carefully considers a variety of factors in determining whether a private loan should be XXXX based on school misconduct and you do not meet the requirements for discharge based on misconduct by your school.. The second time I submitted an application the denial reason provided was, Insufficient supporting evidence of alleged harm., Insufficient evidence that alleged misconduct caused harm., Length of time since alleged conduct occurred., Length of time since you became of aware of the alleged misconduct. 

This application was only created last year. The school was closed in XXXX  after everyone finally became aware of all of the misconduct. Thats the same time this all started. I dont think timing should be a factor at all. I also provided all of the evidence that I could provide since ( as they are very well aware ) I went to the school from XXXX. I scanned the internet to find the webpages where they bragged and provided the skewed statistics. I provided my financial information since I was at the school to prove that my degree never got me anywhere regardless of how hard I tried. I explained how the school bragged about employment services and never followed through. I provided the lawsuit that was brought against the school. I also provided the letter written by members of XXXX about the practices they found disgusting by XXXX to try to get out of discharging private loans that were part of the misconduct. 

I was lied to by financial aid officers and NEVER told I was obtaining a private loan. I would NEVER have signed anything that was a private loan because my mother told me to never do it. My mother was adamant about it. They also lied to my mother to get her to co-sign one of the private loans. They NEVER told her it was private. It was all done electronically, neither my mother nor I ever saw anything on anything we signed telling us we were signing for private loans. We were told they were the same loans Id been getting only it was a Parent loan through the federal government, the information we were provided was that it was a Parent plus loan. The first loan that she didnt co-sign on, I was just sent the exact same email to sign for my loans. I only ever saw loan paperwork once the whole time I went to the school and it was the first federal loan I ever had to sign for, after that it was all electronic through email and then telling me it was the same loans as before. I dont have access to those emails or the portal where I signed anything. Mohela knows this. 

Regarding how these loans have harmed me. Ive been in financial distress for years since. Ive paid on them, my mother paid on them before she died. The interest rate is ridiculous and has grown XXXX loan to over XXXX all by itself. With that, Ill never pay it off and Mohela knows that. Only recently since I was in school getting a forbearance did I have some relief, but now Mohela apparently has a rule they only allow student forbearance for XXXX years. I was never told this and its not on their website ANYWHERE. So I believe I will have to start paying the loans again at some point. I dont have XXXX on top of the XXXX for the last XXXX federal loans I AM responsible for ( of which I fully admit I owe for a different school and have no problems taking care of ). I have XXXX children. Bills to pay for. Insurance to pay for. Even with all of my responsibilities, Mohela wont lower my payments and they dont care what it does to me or my family either mentally or physically. Ive considered suicide to relieve my family of the burden of having a parent that can barely pay for a roof over their head and food to feed them with. When my mother died, my husband had to co-sign the loan she was on because wanted payment in full and we couldnt pay what was due. My husband shouldnt have to be responsible for something that occurred before he even knew me. I was never in default on my loans but people who have been almost a year in default with their private loans got their loans XXXX. How does that make any sense at all? So if I hadnt been responsible, I would get a pass? That shows a lot about how the United States is run these days. 

I was conned to get these loans. They should have never existed. Mohela knows this but they just want their money.

Company response to consumer: Closed with explanation