Consumer complaint received 2025-12-10 00:00:00
Product: Student loan — Private student loan
Issue: Struggling to repay your loan — Can't temporarily delay making payments
Company: MOHELA
State: CA

Complaint narrative:
Mohela has denied my school misconduct discharge application for the XXXX XXXX private loans more XXXX times already. They allege that I could not prove that the school caused me any harm or hardship even though I have stated multiple times that the loan for this particular school is causing me financial hardship. Mohela has lowered my payments to less than XXXX dollars a month for XXXX months, but won't defer them on months that I don't work so I have to still pay even during summer break when I don't work. Mohela keeps saying I don't have proof that the school caused me harm even though there was a lawsuit against the school ( XXXX vs. XXXX ) where it was proven that the XXXX XXXX purposely misled their students and used sketchy tactics to get students enrolled. I cited articles and yelp reviews as evidence for that. 

I have already paid more than what I originally owed. According to the mohela website I have paid a total amount of {$20000.00}. I have paid a principal of {$8900.00} and a total interest of {$11000.00} but my balance is still at {$16.00}, XXXX and the original loan was {$11.00}, XXXX. This is a predatory loan that I have been paying for over XXXX years consistently and yet it has not gone down and only gone up. I want to stop paying this loan or at least get a significant amount reduced because I have been actually paying this loan. I also don't think it's fair that I am still paying for a loan for a school that no longer exits and that has been proven to be fraudulent. My federal loans for that school have already been forgiven by the XXXX administration. I have a letter that shows that they were forgiven, if I need to provide evidence. I would like Mohela to be more fair. 

I appreciate them giving me options for lower payments but I don't appreciate them using that against me by having more interest accrue due to lower payments. I also don't appreciate that they won't discharge my loan because they believe I don't have sufficient evidence. This loan has caused so much financial strain in the past years. The loan is a burden to me and that should be enough evidence of the hardship and harm that the XXXX XXXX caused me. I stated in my application that the XXXX XXXX used shady tactics to get me to apply to a private loan. Please help me get Mohela to understand that this loan is causing me lots of financial stress and that I should not have to continue paying since I have already paid it off and the school no longer exists. I don't even care if I get a refund, I just want this loan to not be a burden for me anymore. I am not against paying off my loans for schools where I actually learned something or where I actually obtained a degree, but I am depressed that I have to continue paying a loan for a school that was a scam. The XXXX vs. XXXX case proved that the XXXX XXXX schools were fraudulent and that they misled and scammed students. Why is that not considered enough evidence for Mohela?

Company response to consumer: Closed with explanation