Consumer complaint received 2025-12-01 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: MOHELA
State: DC

Complaint narrative:
Company : MOHELA ( Missouri Higher Education Loan Authority ) Original Lender / Originator : XXXX XXXX XXXX XXXX Loan Type : Private Tuition Answer Loan Year of Origination : 2006 What is the issue? 

I am filing a complaint regarding serious inconsistencies, misclassification, and improper servicing of my private Tuition Answer Loan originally issued by XXXX XXXX and now serviced by MOHELA. 

There are multiple material errors, including : MOHELA has the wrong school attached to my loan in their system The promissory note lists a different school, the correct school MOHELA confirmed this is a Tuition Answer Loan Funds were disbursed directly to me, not to the school Funds were used for non-tuition expenses Tuition Answer Loans were not school-certified These characteristics mean the loan does not meet the legal definition of a Qualified Education Loan under federal law MOHELA is requiring documentation that is impossible to provide because of their own incorrect school data I may have been charged interest or payments incorrectly for years due to these errors Their internal documentation conflicts with the legally binding promissory note This situation appears to involve improper loan classification, inaccurate recordkeeping, possible misrepresentation, and potential violations of FCRA, TILA, HEA, and CFPB servicing standards. 

Detailed Description of the Problem XXXX. Incorrect School Listed in MOHELA Records MOHELAs records list XXXX XXXX XXXX as the institution associated with this loan. 
I did NOT attend that school. 
My promissory note lists a different school the correct school I attended. 

This prevents MOHELA from validating : Cost of Attendance Title IV eligibility school certification program of study accuracy of loan classification origination details This discrepancy alone invalidates much of their servicing and classification. 

XXXX. Tuition Answer Loan Classification MOHELA admitted over the phone that this loan is a Tuition Answer Loan, a product known to : not require school certification be disbursed directly to students not be limited to cost of attendance be used for non-tuition expenses be marketed as education loans while not meeting federal criteria Courts have ruled similar loans do NOT qualify as Qualified Education Loans under 26 U.S.C. 221 ( d ).

3. Direct-to-Borrower Disbursement MOHELA confirmed the loan was disbursed directly to me rather than to the school. 

According to XXXX and IRS rules, loans that qualify for special treatment must be school-certified and disbursed through or to the school. 

This loan fails that test. 

XXXX. Non-Tuition Use The funds were used for living expenses and other non-tuition costs. 
Therefore, this loan : does not meet the requirements for a Qualified Education Loan can not impose certain collection or cosigner conditions can not be treated as protected debt XXXX. Cosigner Release Blocked by Servicer Error MOHELA requires graduation proof for cosigner release.

This is impossible because : the wrong school is in their system Tuition Answer Loans were not tied to accredited programs the loan was not certified by the school the loan may not correspond to any specific program at all This creates an unfair, deceptive, and unreasonable barrier for borrowers and cosigners.

6. Misclassification & Possible Improper Collection Because MOHELAs servicing records : list the wrong school rely on incorrect school codes conflict with the promissory note and include Tuition Answer characteristics it is unclear whether this loan has been properly classified or legally enforceable. 

MOHELA may have collected payments improperly for years due to this misclassification.

What I Want From This Complaint I am requesting that the CFPB require MOHELA to : 1. Correct the school information in their records 2. Provide full documentation of origination 3. Prove Cost of Attendance compliance 4. Prove school certification 5. Provide Title IV eligibility documentation 6. Provide the original promissory note and disbursement records 7. Explain how the wrong school code became attached to my account 8. Conduct a classification review of this Tuition Answer Loan 9. Place the loan on hold during investigation 10. Stop any negative credit reporting or collection 11. Conduct a payment audit 12. Refund payments if the loan was misclassified or serviced improperly Desired Resolution I want : the records corrected the loan classification reviewed a refund if the loan was misrepresented or serviced inaccurately servicing errors corrected documentation provided protections enforced for me and my cosigner and the loan placed on administrative hold until the investigation is complete Supporting Documents I Will Upload Promissory note showing the correct school Any MOHELA correspondence My dispute letter Screenshots or evidence of incorrect school code Any notes or records from my call with MOHELA

Company response to consumer: Closed with explanation