Consumer complaint received 2025-09-17 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Co-signer
Company: MOHELA
State: CA

Complaint narrative:
XXXXConsumer Financial Protection Bureau, XXXX XXXX XXXXComplaints DivisionXXXXTo Whom It May Concern:XXXX  am writing to request your help as regards a XXXX XXXX student loan applicationXXXXdating back to XXXX  on which I am listed as a cosigner. The loan application wasXXXXelectronically signed on my behalf, as I was working abroad at the time. TheXXXXborrower was my former step-daughter, XXXX XXXX, whom I have not seenXXXXsince XXXX  of XXXX, when I returned from overseas and moved to XXXX.XXXXThe house at the address on record for both XXXX  and me was sold in XXXX, andXXXX the primary borrower, updated her address on the loan website at that time.XXXXThere was no change of address for the XXXX  references whose information wasXXXXalso provided on the Signature Student Loan application.XXXXI learned about the loan in early XXXX, when XXXX  told me about it and said sheXXXXXXXXhad updated her contact information on the XXXX  XXXX  website. XXXX and I wereXXXXnot in contact for the next decade. Thus it was a great shock when, in XXXX XXXX XXXX XXXXXXXX, I received a phone call from XXXX, the company to whom theXXXXloan was transferred from XXXX XXXX in late XXXX. They still had my XXXX  XXXXXXXXaddress on file and were surprised to learn I no longer lived there, though I hadXXXXmoved to XXXX  in XXXX  of XXXX. They had been sending allXXXXcommunications to that address and had never attempted to verify it with me orXXXXthrough XXXX. In that phone call, I learned that the loan was not paid off and hadXXXXaccumulated a large amount of interest, and that they were transferring it toXXXXMohela; at that time they also finally updated my address in their system.XXXXAt that point I contacted XXXX  and discovered that she had declared bankruptcyXXXXand that the loan was in a state of administrative forbearance, which I later foundXXXXout was from XXXX  of XXXX  through XXXX  of XXXX. XXXX had also neverXXXXreceived any of XXXX  letters at the updated address; all her communicationsXXXXhad been via the website.XXXXThe next communication I received was a welcome letter on XXXX fromXXXXMohela, the company that took over the loan from XXXX  in XXXX  around the\XXXXtime XXXX  was banned from XXXX  student loan servicing. The letter was sentXXXXto my current address, as was a statement they sent me in XXXX XXXX then contacted Mohela to try to figure out what was going on, but for monthsXXXXwas unable to make any headway. I pay a monthly fee to XXXX XXXX XXXXbasic legal services, so I consulted with them. On XXXX XXXX XXXX they sent XXXX XXXX XXXX XXXX to Mohela on my behalf. In that notice, they included myXXXXstatement that I had never received a single communication about the loan untilXXXXthe phone call in XXXX, was never informed of the transfer from XXXX XXXX XXXX  never received written communication about the transfer to Mohela, and\XXXXtherefore should not be held liable for accumulated interestXXXX  months later, Mohela has not responded to XXXX XXXX My funds areXXXXlimited, and I recognize that I would be better off with a law firm specializing inXXXXXXXXeducation law, so I have not pursued this further with XXXX XXXX XXXX XXXX XXXX Mohela sent me a letter stating that my address was "invalid",XXXXreferring to the current and correct address they had on file and had used toXXXXcontact me in both XXXX XXXX XXXX! I immediately let them know that theyXXXXhad the correct address, and on XXXX XXXX, a XXXX  after I made the request, theyXXXXmailed a large envelope with a copy of the loan application and manyXXXXXXXXcommunications dating back to XXXX  that had never reached me. This includedXXXXnotice of transfer of holder of the loan, notices of approval of forbearances,XXXXoverdue notices, cosigner interest statements, and the original loan applicationXXXXfor XXXX but Mohela did not include the loan approval letter.XXXXIt was not until less than a XXXX  ago, XXXX XXXX XXXX that Mohela finally sent,XXXXat my request, a copy of the XXXX  XXXX  loan approval letter for XXXX and theXXXXpayment schedule that had been sent to my former address in XXXX  of XXXX, whenXXXXI was XXXX. Strangely, a Mohela rep had state in a letter months ago that theXXXXoriginal loan amount was XXXX, and the current balance as of XXXX XXXX XXXX. They have yet to explain the discrepancyXXXXWhat I want at this point is to have all interest charges removed, since the loaner,XXXXparticularly XXXX, never attempted to verify my address and continued to sendXXXXmail for both of us to the old address, despite XXXX  having corrected hers online.XXXXBecause of this, I had no information about the loan and its accruing interest.XXXXHad I been informed, I would never have allowed the interest to accrue. OnceXXXXinterest charges are removed, I can make sure going forward that the loan isXXXXrepaid in a timely manner. I would appreciate any help you can give me aboutXXXXhow to proceed.XXXXAs I am not sure what other documentation would be helpful, I am only attachingXXXXXXXXa copy of the XXXX  XXXX loan approval letter and the payment schedule MohelaXXXXsent me, but would be happy to provide whatever other detail would be useful.XXXXThe XXXX XXXX  loan number was XXXX XXXX XXXX XXXX, and the current MohelaXXXXloan number is XXXX, in case that information is helpfulXXXXGood wishes,XXXX XXXX

Company response to consumer: Closed with explanation