Consumer complaint received 2024-04-03 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Don't agree with the fees charged
Company: MOHELA
State: WA

Complaint narrative:
I initially signed up for the XXXX school in XXXX. Upon arrival late XXXX, I began by paying cash out of pocket when XXXX informed me I needed to pay lump sums ( ~ $ XXXX ) which needed to be paid every 2-3 weeks to remain active otherwise I was told I was not going to eligible to continue forward as being enrolled at the school. 
I paid the lump sums a few times and I was running out of funds quickly due to the frequency of the payments needing to be made every 2-3 weeks to remain enrolled. I was then advised by the instructor to quickly apply for a loan to cover the balance and then I wouldnt have to worry about being discharged from the school.

Heres how they scheduled out-of pocket payments : Payment to Reserve Class Date {$990.00} Payment Due on Start Date {$18000.00} 8 Weeks After Start Date Payment {$18000.00} 4 weeks later 12 Weeks After Start Date Payment {$18000.00} 4 weeks later 16 Weeks After Start Date Payment {$18000.00} *Plus {$200.00} for third party XXXX apps and approximately {$5000.00} for designated XXXX  examiner fees and XXXX for miscellaneous XXXX gear ( {$7200.00} ). 
Total cost range from {$76000.00} - $ XXXX theres is another very visible issue/problem with this approach : $ XXXX is directly paid to the school prior to a student even completing his XXXX XXXX 
$ XXXX is directly paid to the school prior to a student completing EVEN the instrument portion of program. 

XXXX school is collecting tens of thousands of dollars AHEAD of the student. When a XXXX  school gets all of that AHEAD of a student = red flags should be going up but XXXX claims their refund will PROTECT me from ANY problems or ANY worries and you can simply focus on training. 

I later learned via research about these refunds. I could have basically went to any local XXXX XXXX and got private instruction for about $ XXXX and pay by the lesson as they go. There will NOT be tens of thousands of dollars collected prior/up front. There will NOT be lodging expenses or additional living expenses. Also if I find out they can't complete the training then I could stop at any time without any financial penalties. 
I applied for a loan in early XXXX ( I was approved in just a few minutes via telephone ) and that was the end of the communication between me, finance, and XXXXs admissions department. 
To answer your questions please see below : When did I terminated your training? : I never terminated my training. My life-long dream was to become and XXXX XXXX. I finished my XXXX XXXX as part of the requirement for the major XXXX and position myself better. I worked a full-time job, saved up cash, and sacrificed my family for almost 15 consecutive years in order to attend XXXX school. XXXX school location ( XXXX XXXX XXXX XXXX ) located at XXXX XXXX XXXX, XXXX XXXX, CA XXXX XXXX XXXX quickly completely crushed it all by taking my funds, accepting my funds from the lender, and basically kicking me out to the curb. I was able to start off attending by paying cash ( which is why the original loan needed was only XXXX ). I was VERY SERIOUS about making my dreams a reality. The XXXX school location ( XXXX XXXX XXXX XXXX ) located at XXXX XXXX XXXX, XXXX XXXX, CA XXXX XXXX XXXX XXXX XXXX school closed and shortly after I was unknowingly listed as status discharged after informing them of my situation and without my consent they basically kicked me out and would not answer my request to return my personal funds or the loan to the lender.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation