Consumer complaint received 2024-12-06 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: MOHELA
State: FL

Complaint narrative:
I was approved for Borrower Defense for my Federal loan debt for XXXX XXXX XXXX. As my Federal debt was forgiven, and XXXX being found to have defrauded students by using aggressive sales tactics and pressuring students into getting high interest private loans I am writing to complain about my repayment of my private debt. I had no intention, originally, of obtaining private loan debt as I was told by the Financial Aid office at XXXX they would be able to find plenty of federal grants and federal loans for me to cover the cost of tuition. When it came time to finish signing up for my financial aid I was told I was short and needed a private loan with a cosigner in order to finish my degree and that the payment would be low upon graduation. Feeling pressured since I had already started I applied and was given the private loans with my father as a cosigner and finished my degree in XXXX. Upon graduation my minimum payment was more than half of my monthly income with an interest rate of 12.99 %. I could not afford this so opted to pay interest only for a few years, which at the time was still half my income. Finally after 10 years, I was able to refinance to get my father off as a cosigner and to obtain a lower interest rate. After paying on the loan for several years it was not going down in total so I refinanced again so that I could start to make a dent in the total amount due with a 9.99 % interest rate. In the meantime, I applied for defense to repayment in XX/XX/XXXX, and my application was in limbo for a long time. Eventually, in XXXXXXXX XXXX XXXXXXXX, I was denied by the administration in the DOE. With having to pay federal and a private loan again I refinanced with XXXXXXXXMohela in XXXX of XXXX for a 3.909 % interest rate. Eventually, due to the efforts of XXXX, all of our applications and some excellent attorneys, I was able to obtain full forgiveness on my federal debt when the lawsuit XXXXXXXX XXXX XXXX was successfully won. A suit that was defended successfully against appeal, over and over again before being finalized. Which brings me to today where I am currently saddled with private debt 18 years later, for a degree from a school that has since closed due to the multiple lawsuits against it. My college credits earned are not transferrable anywhere. The school was found to be culpable in profiting off the backs of students like myself who were trying to get a personalized educational opportunity only to be pressured by a corporation. I dispute that I should have to pay these private loans back when the original loan company, XXXX, is giving out applications for private loan forgiveness based on school misconduct. I would like to request XXXX/Mohela provide the same type of application so that I can request the remaining debt be cancelled. While it wont make up for the 18 years I have paid on this loan with it still not even being halfway paid off it would allow me to allocate funds to my daily life instead of living paycheck to paycheck.

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