Consumer complaint received 2025-02-07 00:00:00
Product: Student loan — Private student loan
Issue: Struggling to repay your loan — Can't get other flexible options for repaying your loan
Company: MOHELA
State: WI

Complaint narrative:
Thousands of students were scammed by XXXX into taking out predatory private loans to attend for profit online schools such as the one I attended, XXXX XXXX XXXX XXXX XXXX As a matter of fact, XXXX XXXX XXXX XXXX XXXX was first investigated by the city attorney of XXXX XXXX for using deceptive marketing tactics resulting in underestimated program costs for students and inflated job placement figures for graduates. This led the XXXX XXXX XXXX ( XXXX ) who owned the XXXX XXXX, to close down the majority of these schools across the XXXX including the school I attended in XXXX XXXX  that closed its doors in XXXX. 
Because of the numerous claims of fraud and misconduct perpetrated by these online for profit schools, such as the art institute of XXXX, I was able to file a Borrower Defense claim with the Dept. of Education against XXXX XXXX XXXXXXXX XXXX XXXX, and my Fed. loans of {$60000.00} were discharged and my credit repaired. My Borrower Defense Claim was also part of the XXXX XXXX XXXXXXXX settlement for which I was a full class member. 
I had asked for an application to apply for discharge of my Private Loans if which was sent to me. I spent months filling this application out and did a crazy amount of research to prove that XXXX XXXX XXXXXXXX XXXX XXXX  and XXXX did fraudulent activities to con me and other students into borrowing crazy amounts of money. I sent this application to them and was then sent a denial letter with no explanation as to why I was denied. This is unacceptable because there is no reason that they cant approve my discharge when all the proof of this school is everywhere. What more do they want? 
I was with XXXX XXXX, and then tossed to XXXX, which then changed to aid advantage, and now they moved me again to Mohela? What are they not telling us that they have to continue to move my loans to a new servicer? XXXX XXXX and XXXX were both found to also be doing fraudulent activities and have testimonies from former employees proving that they didnt care but that wasnt enough for them to give me relief? 
I am aware that XXXX was sued by XXXX state AGs regarding their predatory loans to attend these online for-profit schools and that XXXX XXXX were a " preferred '' lending company in a " deal '' with these schools during the early XXXX 's. These private loans with a high risk of default were part of a package deal offered to " for profit online schools ''. But loans made to students in states outside of the agreement, or those who were not in default for 7 months or more during a " specific '' time frame, were excluded. I am sure this was a big win for XXXX, but what a sham of a settlement deal for the rest of borrowers scammed into taking loans to at least XXXX for profit online schools. After the XXXX settlement, didn't XXXX also get out of the Federal student loan business due to scrutiny from lawmakers and borrower advocates? Didn't XXXX have to pay restitution to the Federal student loan borrowers for not informing students of IDR/IBR payments students could have enrolled in, but instead steered toward forbearance? Furthermore, hasn't XXXX been sued at least a half dozen times for other predatory loan practices and illegal collection practices? 
I am also aware of a " pilot '' program by which XXXX is sending out " applications '' to select students who may have filed XXXX XXXX claims against their schools and were approved. This application is a sham. Why do we need to prove anything? XXXX knows who we are. Under the FTC " Holder Rule '' XXXX is liable for giving predatory loans in connection with online for-profit schools. Time is running out for XXXX to do right by students who were scammed into taking out private loans to attend online for profit colleges who have committed misconduct and misrepresented themselves to the public to entice students to enroll. XXXX XXXX XXXX has sent a letter to XXXX 's CEO asking to discharge these loans NOW! It's time XXXX do the right thing and discharge all these predatory private loans made to attend online for profit schools.

Company response to consumer: Closed with explanation