Consumer complaint received 2025-09-03 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA
State: LA

Complaint narrative:
I am writing to formally dispute the validity of the alleged debt referenced in your recent communications and account summary dated XX/XX/XXXX, regarding student loan accounts that have purportedly been transferred or assigned to XXXX XXXX XXXX XXXX XXXX. I dispute both the ownership of the loans and the accuracy of the amount claimed.

1. Demand for Debt Validation ( 15 U.S.C. 1692g of the FDCPA ) Pursuant to the Fair Debt Collection Practices Act, I hereby request full and complete validation of the alleged debt as required under 15 U.S.C. 1692g ( b ), including but not limited to : A copy of the original promissory notes bearing my signature ; A detailed breakdown of all principal, interest, and fees ; Full payment history including records of payments made under XXXX XXXX XXXX  ; Documentation proving Ascendiums legal authority to collect on this debt, including chain of title and assignment from the Department of Education or any predecessor loan servicers ; A clear explanation of how interest was calculated and why the interest shown is being claimed in violation of income-based repayment terms ; Clarification as to how loans previously in Income-Based Repayment ( IBR ) and Public Service Loan Forgiveness ( PSLF ) -eligible status could have accrued the listed interest or principal balances.

Until this validation is provided, you are required by law to cease all collection activity, including reporting to any credit reporting agency.

2. Alleged Violation of Fair Credit Reporting Act ( 15 U.S.C. 1681 et seq. ) Under the Fair Credit Reporting Act, I assert that the reported amounts to any credit bureaus are : Inaccurate under 15 U.S.C. 1681s-2 ( a ) ( 1 ) ; Unverifiable, given that I was enrolled in a federal repayment program for the last 16 years and made consistent payments under IBR ; Misleading, because these loans appear to have been improperly reassigned or serviced by a private company without proper authority or my consent.

If these accounts are currently being reported to any consumer reporting agency ( e.g., XXXX XXXX XXXX ), I demand immediate investigation and correction of any false information, as well as provision of a written notice detailing the results of the investigation under 15 U.S.C. 1681i ( a ) ( 6 ).

3. Potential Violation of Federal Program Rules Income-Based Repayment & PSLF I have been enrolled in an Income-Based Repayment Plan since approximately XXXX, and made qualifying payments consistent with XXXX and XXXX service that should have applied toward federal forgiveness. If these loans were transferred, sold, or reassigned to private entities while I was participating in a federal program, such action may violate : 34 C.F.R. 685.221 Income-Based Repayment eligibility and calculation of interest ; 34 C.F.R. 685.219 Public Service Loan Forgiveness program qualification ; Provisions of the Higher Education Act of 1965 governing servicer compliance with borrower entitlements.

I request a federal-level investigation into the handling of these loans and how a private third party like XXXX could have legally assumed servicing or collection authority under these circumstances. 

4. Disputed Amount and Loan Forgiveness Status The principal and interest amounts are in dispute, as the summary you provided does not account for : Payments made through the XXXX XXXX XXXX  ; Forgiveness credit accrued under federal repayment or public service programs ; Past deferments or forbearances granted for qualifying public service employment. 
The fact that XXXX is presenting a balance in excess of {$120000.00} with unverified interest ratessome as high as 6.8 % is not only suspect but in direct conflict with federal repayment terms under which I was enrolled. 

5. Legal Notice Be advised that under 15 U.S.C. 1692c ( c ), you are hereby instructed to cease and desist all further communication unless and until full validation of debt is provided.

Any continued collection efforts, negative credit reporting, or attempts to coerce payment without full validation will be considered a willful violation of federal law and may subject your agency to civil liability under 15 U.S.C. 1692k and 15 U.S.C. 1681n/o.

Conclusion I dispute this debt in its entirety and demand full validation before any further action is taken. If you are unable to validate the debt or correct the reporting errors, you must cease all collection efforts and delete all related entries from my credit report.

Please respond within 30 days as required by law. A copy of this letter will be retained for legal documentation purposes.

Company response to consumer: Closed with explanation