Consumer complaint received 2025-04-02 00:00:00
Product: Student loan — Private student loan
Issue: Getting a loan — High pressure sales tactics or recruiting
Company: MOHELA
State: CA

Complaint narrative:
I attended California XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX. During the recruitment process and my time at the XXXX, I was told false and misleading statements that, had known the truth, I would not have attended the school. A summary of some of the false and misleading statements and experiences I had at XXXX are below : - I was told by XXXX representatives that once I graduated, I would easily be making {$20.00} or more per hour at any bakery and that I would be easily hired. That was not the case for myself, and to my knowledge, none of my classmates obtained these jobs. If I had known about the actual employment rates and job prospects, I would not have gone to the school. - During my tour of the school, the recruiter kept saying : Lets get you in school now, Lets see how your credit is to you have to sign you up now, Lets get this done now, Lets get you started in classes right away, Lets get you enrolled right away, If you dont enroll right away, youd lose your spot, and youd have to start over. If you dont enroll now, you won't be eligible to start now, and you don't want to wait. - I was told that the school would have meet and greets and job fairs with bakeries and hotels to assist students with getting paid positions. However, the only jobs the school helped facilitate were almost all unpaid internships and unpaid jobs. - XXXX told me and other students that after graduation, we would be working at the XXXX, other prestigious hotels, or private bakeries, and XXXX  program would guarantee that I would get this kind of employment. I never received job opportunities like this, and to my knowledge, none of my classmates obtained these jobs. If I had known about the actual employment rates and job prospects, I would not have gone to the school. - XXXX promised employment assistance post-graduation, use of the library with access to information that was not available to the public and the option to audit classes for free post-graduation. However, none of these were provided. - Each of these promises were major factors I considered when enrolling in the school. If I had known that these were not actually available, and the promises were false I would not have enrolled. - After roughly XXXX of trying to repay the student loans from XXXX  XXXX I owe more money than when I graduated. I was misled and pressured into enrolling in XXXX and taking out these loans and none of the promises they made to me were true. While in the enrolling process for XXXX, I was pressured to sign up for student loans with no information on the terms of the loans, like repayment terms, repayment timeframe, or other information that would have helped me understand the loans. I was also not informed that I would be taking out both private and government student loans. The private loan at issue was originally with XXXX XXXX and is now owned by XXXX. MOHELA now services this loan. There are multiple issues with this loan starting from XXXX XXXX and continuing through XXXX. I was aggressively pressured multiple times by XXXX XXXX XXXX XXXX the loan despite their knowledge of my difficulty with paying the loan due to my XXXX. When I informed XXXX XXXX of my XXXX, their representatives told me over the phone : You will be paying on these loans for the rest of your life. Threats like these and other aggressive tactics were commonly done by XXXX XXXX towards me. The original amount for the student loan was {$28000.00}. I have been paying roughly $ XXXX per month for over 10 years. The current balance of my loan is {$34000.00}. I have paid more than {$57000.00} to this student loan already, more than double the original loan amount. The loan only continues to increase, despite making these payments. I was never informed that this loan was a negative amortization loan, and had I known, I would not have taken the student loan out.

Company response to consumer: Closed with explanation