Consumer complaint received 2025-05-18 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 am writing to formally dispute the recent denial of my School Misconduct application submitted to MOHELA, as well as to raise serious concerns about inaccurate and damaging credit reporting reflected on my credit file with the major credit bureaus.

1. Improper Denial of School Misconduct Application.I recently received a denial of my School Misconduct application, despite having submitted substantial supporting documentation clearly demonstrating misconduct by the XXXX XXXX that has been acknowledged and litigated by multiple government agencies. This includes lawsuits brought by federal and state authorities, as well as my own status as a class member in the XXXXXXXX XXXX XXXXXXXX lawsuit, which resulted in favorable outcomes for thousands of similarly situated borrowers.All of which it shows evidence of wrongdoings by the XXXX XXXX. 

The application instructions clearly state : '' In some circumstances, a lawsuit against a school may qualify. For a lawsuit to qualify, it must be based on the school 's misconduct related to your decision to enroll or remain enrolled. It must have been brought by you, a government agency or if it's a class action lawsuit, have you included as a class member. " By this definition, the documentation I provided should have been more than sufficient to meet the eligibility criteria. Furthermore, MOHELA has failed to disclose the specific standards or criteria used to evaluate my claim. This lack of transparency is deeply concerning and undermines the fairness and integrity of the process.Additionally, MOHELA previously claimed that I did not appeal a prior denial in a timely manner. This statement is demonstrably false. I have timestamped email communications showing that I responded and submitted an appeal within the same week of the original decision. 

2. Inaccurate Credit Reporting and Mishandling of Forbearance StatusMore recently, I have suffered a XXXX drop in my credit score due to MOHELAs inaccurate reporting of my account as delinquent by 60 days between XX/XX/year> and XX/XX/year>. This is highly problematic and unjustified for the following reasons : - I submitted a School Misconduct application on XX/XX/year> and received written confirmation from MOHELA of receipt.- Once a School Misconduct application is received, the loans should be placed into forbearance until a decision is made.- MOHELA failed to process the application until approximately a month later, during which time I was marked as delinquent.- As of this writing, my MOHELA account is showing that I am currently in forbearance until XX/XX/year>, yet the credit reporting still reflects delinquencies that contradict XXXX am also calling into question the accuracy of my loan balance. My total owed amount inexplicably increased by over {$3000.00} during the two-month period when my account was supposedly in forbearance. This unexplained increase raises red flags and appears inconsistent with loan servicing norms and federal student loan regulations. 

3. Pattern of Mismanagement and Ongoing InvestigationsIt has come to my attention that MOHELA is currently under investigation by multiple state attorneys general for mismanagement of borrower accounts and questionable servicing practices. My experience aligns with the pattern of negligence and lack of accountability currently being scrutinized by government authorities.

Company response to consumer: Closed with explanation