Consumer complaint received 2025-01-20 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: FL

Complaint narrative:
Student Loan amount : XXXX Please consider the following : Issue : Did XXXX XXXX XXXX XXXX, later renamed XXXX XXXX XXXX, breach its agreement with XXXX XXXX regarding employment placement and opportunities after graduating with a XXXX XXXX in Accounting and Business Management? 
Rule : 16 CFR 254.4 - Misrepresentation of facilities, services, qualifications of staff, status, and employment prospects for students after the training. 
( a ) It is deceptive for an Industry Member to misrepresent, directly or indirectly, expressly or by implication, in advertising, promotional materials, recruitment sessions, or in any other manner, the size, location, services, facilities, curriculum, books and materials, or equipment of its school or the number or educational qualifications of its faculty and other personnel. For example, an Industry Member should not : ( 3 ) Misrepresent the availability of employment or the role of the school in providing or arranging for said employment while the student is undergoing instruction.

( 8 ) Misrepresent the nature and extent of any personal instruction, guidance, assistance, or other service, including placement assistance and assistance overcoming language barriers or XXXX  XXXX, it will provide students either during or after completion of a course ( XXXX ) It is deceptive for an Industry Member, in promoting any course or program of instruction in its advertising, promotional materials, or in any other manner, to misrepresent, directly or indirectly, expressly or by implication, whether through the use of text, images, endorsements, or by other means, the availability of employment after graduation from a school or program of instruction, the specific type of employment available to a student after graduation from a school or program of instruction, the success that the Industry Member 's graduates have realized in obtaining such employment, including the percentage of graduates who have received employment, or the salary or salary range that the Industry Member 's graduates have received, or can be expected to receive, in such employment. 
Analysis : Before XXXX enrollment in XXXX XXXX, she was a wife, mother, and successful businesswoman looking to elevate her career to the next level to further provide for her family. She frequently heard the radio, saw television, billboards, etc. advertisements about XXXX XXXX success rate in job placement and opportunities after attending and graduating with a degree from XXXX. It was because of these claims that were abundantly advertised, that XXXX decided on XXXX XXXX  to further her education. In XX/XX/XXXX, XXXX enrolled in the XXXX XXXX XXXX : in Accounting and Business Management. 
Since her graduation from the program in XX/XX/XXXX, XXXX has not been able to be gainfully employed nor has she received any assistance or job leads in her field of study. 
According to an article that was published by the Department of Education on XX/XX/XXXX, After a review of voluminous amounts of evidence, the Department found that from XXXX to XXXX DeVry repeatedly misled prospective students across the country with claims that XXXX percent of XXXX graduates who actively seek employment obtained jobs in their field of study within XXXX months of graduation. This claim was the foundation of a national advertising campaign called, We Major in Careers to brand DeVry as a XXXX XXXX University where it used the XXXX percent placement statistic as the way to convince prospective students to enroll. 
In fact, the institutions actual job placement rate was around XXXX percent. The Department found that more than half of the jobs included in the claimed XXXX percent placement rate were held by students who obtained them well before graduating from XXXX and often before they even enrolled. These jobs were not attributable to a XXXX education and their inclusion was contrary to the plain language of the XXXX percent claim. Moreover, XXXX excluded from its calculation large numbers of graduates who were in fact actively looking for work simply because they did not conduct a search in the manner that the XXXX XXXX XXXX department preferred. 
The Department also found that senior XXXX officials knew of the problems with the XXXX percent statistic for years, in part due to concerns about its accuracy raised by alumni. 
In XXXX, the FTC reached a {$100.00} XXXX settlement with XXXX around similar allegations. The Department also reached a settlement with XXXX related to older job placement rate statistics in XXXX. The attorneys general of New York and Massachusetts also reached agreements with XXXX in XXXX to resolve allegations of misleading job placement rates. 
During this period of misrepresentation, XXXX was a publicly traded company owned by XXXX XXXX XXXX XXXX, which was later renamed XXXX XXXX XXXX. Senior leaders at XXXX during this time included XXXX XXXX, who served as President and CEO from XXXX through XXXX and XXXX XXXX, who served as the XXXX vice president and/or president of XXXX University XXXX XXXX through XXXX. XXXX sold XXXX in XXXX. 
Conclusion : In conclusion, to date, the Department has identified approximately XXXX borrowers who will be eligible for approximately {$71.00} XXXX in discharges because they relied on XXXX misrepresentation in deciding to enroll. The number of approvals is anticipated to grow as the Department reviews outstanding claims from former XXXX students. All borrowers with approved claims will receive full relief. It is self-evident that XXXX is XXXX student that was harmed by the fraud XXXX has XXXX been proven to have committed and respectfully asks her student loan debt be XXXX.

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