Consumer complaint received 2024-11-12 00:00:00
Product: Student loan — Private student loan
Issue: Getting a loan — Confusing or misleading advertising
Company: MOHELA
State: CA

Complaint narrative:
Thousands of students were scammed by XXXX into taking out predatory private loans to attend for XXXX XXXX XXXX XXXX XXXX XXXX  XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX - XXXX. Both schools have now closed and are non-existent which makes both my XXXX XXXX from XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 

I have been making payments to my private loans for 14 years now and all I see is the interest rates just getting higher and higher. I haven't made a single dent into the loans but yet I keep paying monthly payments of {$780.00} on a rate reduction program to date and it hasn't helped with any of my balance. I see no end to these loans and have been just drowning in credit card debt in order to use my cash flow to pay these predatory student loans. I have suffered extreme hardship and it's affecting my ability to buy a house, it affects my daily life as I now suffer from XXXXXXXX XXXX XXXX due to the hardship and constant reminder of these loans. I am unable to live a normal life while under the constant fear of defaulting. 

As a matter of fact, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXere investigated by the attorneys general of several states and have been found to have acted in a fraudulent manner. 
Because of the numerous claims of fraud and misconduct perpetrated by XXXX XXXX XXXX XXXX XXXXXXXX XXXX has just announced a blanket discharge for anyone enrolled aXXXX XXXX XXXX XXXX XXXX XXXX  XX/XX/XXXX to XX/XX/XXXX. My Federal loans were XXXX. 
I am aware that XXXX was sued by XXXX state AGs regarding their predatory loans to attend these XXXX XXXX XXXX XXXX XXXX XXXX  XXXX were XXXX " 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 " XXXX XXXX XXXX XXXX XXXX, 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 have been paying off my private loans to keep them from defaulting and to avoid ruining my credit and in doing that, I was 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 XXXX student loan business due to scrutiny from lawmakers and borrower advocates? 
Didn't XXXX have to pay restitution to the XXXX student loan borrowers for not informing students of XXXX XXXX XXXX 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 XXXX 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 " XXXX XXXX '' XXXX is liable for giving predatory loans in connection with online for-profit schools. 
XXXX 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 NOW!

Company response to consumer: Closed with explanation