Private loan transferred from Navient to MOHELA without notice - co-signer nightmare after Ch 13 discharge

Ugh, PRIVATE student loans are the absolute WORST!!! They operate in a completely different universe than federal loans. I had something similar with Navient (but not as bad as yours). The key difference is that MOHELA handles both federal and private loans, while Navient mostly does private. Since this is a private loan, it's not eligible for any of the FAFSA/federal forgiveness programs, so anyone suggesting IBR plans or PSLF is just confusing things. Private loans follow different rules entirely. You need to: 1) Send MOHELA a debt validation letter IMMEDIATELY via certified mail 2) File CFPB complaints against both Navient AND MOHELA 3) Contact your state attorney general (they've been going after these companies) And start recording every single call with them!! They hate that!!

This is actually a complex situation that requires careful navigation. First, to clarify: while this isn't directly a FAFSA issue since it's a private loan, there are important considerations regarding your rights: 1. The unauthorized loan increase could potentially be challenged under the Truth in Lending Act, which requires clear disclosure of loan terms and conditions. 2. Regarding bankruptcy: While student loans typically aren't dischargeable, not being properly notified about a loan's existence can sometimes provide grounds for reconsideration. 3. The transfer from Navient to MOHELA doesn't change your rights, but it does give you another opportunity to dispute the debt validity. I would recommend: - Filing a formal dispute with all three credit bureaus specifically about the unauthorized increase - Submitting a CFPB complaint about both the unauthorized increase and MOHELA's failure to communicate with your attorney - Having your attorney send a cease and desist letter to MOHELA The fact that they won't communicate with your attorney is particularly concerning and potentially violates debt collection practices.

Navient is notorious for this exact behavior. They did something similar to my daughter - kept "losing" her paperwork, adding fees, then sold her loan to someone else. These private loans are nothing like federal student loans - they don't have the same protections AT ALL. Be prepared that MOHELA might be just as bad. Document EVERYTHING from now on. Every email, call, letter - save it all!

Let me clarify some misinformation in this thread: 1. Private student loans and federal student loans are completely different systems. FAFSA is only for federal aid, so advice about FAFSA forgiveness programs won't apply here. 2. Bankruptcy and private loans: While it's generally difficult to discharge student loans in bankruptcy, there are exceptions under the Brunner test or undue hardship provisions. The fact that you weren't notified of the loan increase could potentially strengthen your case. 3. Regarding the unauthorized increase: This could constitute fraud. The statute of limitations for fraud varies by state (typically 2-6 years), but the discovery rule often allows the clock to start when you discovered the fraud, not when it occurred. 4. MOHELA acquisition: When loans are transferred, the new servicer inherits the legal issues. MOHELA cannot claim clean slate status. I recommend having your attorney file motions to reopen the bankruptcy to include this debt, particularly citing the lack of notification and potential fraud. Additionally, file complaints with the CFPB and your state's attorney general specifically citing the unauthorized loan amount increase. Many states have limitations on debt collection practices that are more stringent than federal laws, so check your specific state's consumer protection laws as well.

i had MOHELA for my federal loans and they were OK, not great but better than Navient from what ive heard. but your talking about private loans which is totally different. why isn't your lawyer being more helpful? seems like they should be filing something to stop this?? have you tried reaching fsa directly to see if any of this qualifies for forgiveness? maybe it got converted to a federal loan during the transfer??

After trying for WEEKS to reach someone at the Federal Student Aid office about my loan servicing issues (not exactly like yours, but similar transfer problems), I discovered a service called Claimyr that got me through to an actual human at FSA in under 10 minutes. I was honestly shocked it worked because I'd spent hours on hold before that. Their website is claimyr.com and they have a video showing how it works: https://youtu.be/TbC8dZQWYNQ Now, since yours is a PRIVATE loan, the FSA won't have direct jurisdiction, but they were able to help me understand exactly what documentation I needed for my CFPB complaint, which rights I had regarding servicing transfers, and how to properly dispute the debt. The agent also explained how to properly document servicing errors, which was extremely helpful when I later had to prove my case.

this is WHY i tell ppl NEVER COSIGN ANYTHING! sorry your dealing with this but maybe someone will learn from ur mistake. private loans are basically legal loan sharks.

have u looked into the navient settlement stuff??? there was a big thing a couple years ago where they had to forgive a bunch of private loans bc of predatory practices!!! maybe ur eligible for that even tho its at mohela now since it started with navient?? google "navient settlement private loans" and see if that helps???

One important point I haven't seen mentioned: if you send MOHELA a "Request for Information" (RFI) under RESPA (Real Estate Settlement Procedures Act) or a "Qualified Written Request" (QWR), they are legally required to respond within 30 days. Include in this request: 1. Proof of the original loan amount and your signature authorizing the increase 2. Complete payment history showing how $23K in payments only reduced principal by $X 3. Documentation of the transfer from Navient to MOHELA 4. Validation of all fees and interest calculations Send it certified mail with receipt requested. If they fail to respond properly, that gives you additional leverage with the CFPB complaint. This documentation will be crucial for disputing with credit bureaus as well. Credit bureaus must investigate disputes within 30 days, and if MOHELA can't provide proper documentation, the bureaus should remove the negative reporting.

Thank you all for the helpful responses! I'm going to: 1. Send a debt validation letter to MOHELA (certified mail) 2. File CFPB complaints against both servicers 3. Send a formal Request for Information asking for documentation of the loan increase 4. Contact my state AG's office 5. File disputes with all three credit bureaus I've already called my lawyer to discuss potentially reopening the bankruptcy based on the fraud angle some of you mentioned. He thinks we might have a case since I was never notified of the loan increase and never approved it. I'll update this thread once I hear back from MOHELA or have any progress to report. Thanks again for helping me understand my options better!

That's a solid action plan! One additional thing to consider - when you send that debt validation letter to MOHELA, also include a request for them to provide written confirmation that they will only communicate through your attorney going forward. Since you already gave them your lawyer's contact info and they're ignoring it, this creates a paper trail showing they're violating proper debt collection protocols. Also, when you file those credit bureau disputes, be very specific about disputing the "unauthorized loan amount increase" rather than just the general debt. This forces them to validate the specific claim that you agreed to the higher amount. Keep us posted on how it goes - your case could really help others dealing with similar Navient/MOHELA nightmares!

This thread is absolutely incredible - what started as one person's nightmare has turned into a comprehensive guide for fighting predatory loan practices! As someone new to dealing with student loan issues, I'm taking notes on everything. The systematic approach everyone has outlined here is brilliant: debt validation letters, CFPB complaints, credit bureau disputes, state AG involvement, requesting complete audit trails, and documenting every single interaction. It's clear these companies rely on borrowers not knowing their rights. @Anastasia Kuznetsov - the unauthorized doubling of your loan from $10K to $20K without your knowledge or consent is absolutely fraudulent. Combined with the transfer to MOHELA without notice and their refusal to communicate with your attorney, you have multiple clear FDCPA violations. The fact that you already filed a fraud police report shows you were taking this seriously from the start. For anyone else following this case, I'd recommend saving this entire thread as a reference guide. The community has essentially created a step-by-step playbook for fighting back against predatory loan servicers. The level of expertise and support here is amazing! I'm definitely going to check out some of the resources mentioned here like Claimyr for getting through to federal agencies, and the advice about requesting complete loan files under the Fair Credit Reporting Act is something I never knew was possible. Thank you for sharing your experience and fighting back - you're helping protect countless other borrowers by documenting these violations and refusing to be intimidated!

This is an incredibly comprehensive thread that shows the power of community knowledge! As someone who's dealt with loan servicer issues before, I'm impressed by how systematically everyone has broken down the violations and actionable steps. One additional resource I haven't seen mentioned: the Consumer Financial Protection Bureau has a specific complaint portal for student loan issues at consumerfinance.gov/complaint. When filing your CFPB complaint, make sure to select "Student loan" as the product type and "Private student loan" as the sub-product. This ensures it gets routed to the right team. Also, when documenting your timeline, include any screenshots or saved emails showing the loan balance at different points. If you have online account access, take screenshots NOW before they potentially "update" their systems and lose historical data. The unauthorized increase from $10K to $20K is the smoking gun here. That's not a billing error - that's potential fraud. Combined with everything else (transfer without notice, ignoring your attorney, improper payment application), you have a rock-solid case. Keep fighting! You're not just protecting yourself - you're helping establish precedent that these predatory practices won't be tolerated. This thread should be required reading for anyone dealing with private student loan issues.