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 is exactly the kind of predatory behavior these servicers get away with because most people don't know their rights! I'm glad you're taking action on multiple fronts. One thing to add to your plan - when you contact your state AG's office, ask specifically about any ongoing investigations into Navient or MOHELA. Many states have active cases against these companies, and your situation could potentially be added to existing enforcement actions. Also, consider requesting your complete loan file from both Navient (for the original loan) and MOHELA (for the current servicing) under the Fair Credit Reporting Act. They have to provide all documents they have related to your account, which might reveal more discrepancies or missing authorizations. The fact that you have a police report for the unauthorized increase is huge - that shows you're treating this as potential fraud, not just a billing dispute. Make sure to reference that police report number in all your correspondence with MOHELA, the credit bureaus, and your CFPB complaint. You're doing everything right by documenting this process. These companies count on people giving up when the system gets too complicated!

Document retention is crucial here! Since you mentioned this loan transfer happened in January but you just discovered it, make sure to request from MOHELA exactly when they sent you transfer notification (if any). Under the Fair Debt Collection Practices Act, they're required to provide written notice within 5 days of first contact attempting to collect the debt. If they can't prove they properly notified you of the transfer, that's another violation to add to your CFPB complaint. Also, since you've been making payments and they've been adding fees simultaneously, request a detailed accounting of how each payment was applied - principal vs. interest vs. fees. Many servicers illegally apply payments to fees first instead of principal, which inflates the remaining balance. The combination of no transfer notification + improper payment application + ignoring your attorney + the original unauthorized increase creates a pattern of violations that strengthens your case significantly. Your documentation strategy is spot on!

This thread is incredibly informative! As someone who's dealt with loan servicer transfers before, I want to emphasize something that might get overlooked - keep detailed records of EVERY interaction going forward, including dates, times, and names of representatives you speak with. One additional strategy: consider filing a complaint with your state's Department of Financial Services (or equivalent regulatory body) in addition to the CFPB complaint. State regulators often have more aggressive enforcement powers and can sometimes get faster responses than federal agencies. Also, regarding the credit reporting - you have the right to add a 100-word consumer statement to your credit reports explaining the dispute. While this won't remove the negative marks immediately, it provides context for future lenders who pull your credit. Include key phrases like "disputed unauthorized loan increase" and "fraud investigation pending." The fact that you're approaching this systematically with legal representation puts you in a much stronger position than most people facing similar situations. These servicers unfortunately rely on borrowers not knowing their rights or giving up when the process gets complicated.

This is an incredibly thorough breakdown of actionable steps! As someone who works in consumer finance advocacy, I want to add one more crucial point: when you send your debt validation letter to MOHELA, include a specific request for them to "cease and desist" all collection activities until they provide proper validation. Under the FDCPA, once you request debt validation, they must stop collection efforts until they comply. This means no more calls, emails, or credit reporting while your request is pending. If they continue collection activities after receiving your cease and desist request, each violation can result in up to $1,000 in statutory damages. Also, since you mentioned the original loan was supposed to be $10K but became $20K without authorization, make sure to request the original loan agreement AND any amendments or modifications. If they can't produce a signed modification authorizing the increase, that's powerful evidence of fraud. The combination of your systematic approach plus legal representation gives you excellent leverage. These cases often settle quickly once servicers realize the borrower knows their rights and has proper documentation. Keep fighting - you're doing everything right!

Just wanted to add one more resource that might help - if you haven't already, consider reaching out to your local Legal Aid office or a nonprofit credit counseling agency. Many of them have experience with predatory lending cases and can provide additional support at low or no cost. Also, when you're documenting everything, make sure to save any promotional materials or communications you received when the loan was originally set up. Sometimes these contain promises or terms that contradict what the servicers later claim, which can be powerful evidence in fraud cases. The unauthorized loan increase from $10K to $20K is particularly egregious - that's literally doubling your debt without consent. Combined with the lack of transfer notification and ignoring your attorney, you have a really strong case. Don't let them wear you down with bureaucracy - you're clearly in the right here and have excellent documentation strategies in place. Keep us posted on how the debt validation response goes. Your experience could be invaluable for others dealing with similar Navient-to-MOHELA transfer issues!

This is such a comprehensive action plan - you're doing everything right! One additional suggestion: when you file your CFPB complaints, make sure to include specific dollar amounts for damages. Beyond the unauthorized $10K increase, calculate the impact on your credit score, any increased interest rates on other credit products due to the credit damage, and time/costs spent dealing with this mess. CFPB complaints with specific monetary damages often get prioritized. Also, since you mentioned this happened with your "ex's" education - if you're no longer in contact with them, that could actually strengthen your case that you had no knowledge of or authorization for loan modifications. Make sure to include that context in your documentation. The fact that you already have a police report for fraud puts you miles ahead of most people in similar situations. These servicers are used to dealing with confused borrowers, not someone who's documented everything and has legal representation. Keep fighting - you're setting an important precedent for others!

This is an incredibly well-documented case of predatory lending practices! As someone who has dealt with similar servicer issues, I want to emphasize how important your systematic approach is. The combination of unauthorized loan increases, lack of transfer notification, and ignoring attorney communication creates a clear pattern of FDCPA violations. One thing I'd add to your excellent action plan: consider requesting a complete audit trail from both Navient and MOHELA showing every single transaction, fee assessment, and balance calculation from the loan's inception. Often these audits reveal additional discrepancies - like duplicate fees, incorrect interest calculations, or payments that were "lost" in their systems. Also, since you mentioned making $23K in payments on what became a $19,600 loan that now shows $50K+ owed, that payment application history will be crucial evidence. Many borrowers don't realize that servicers often apply payments to fees and penalties first (which they're not supposed to do) rather than principal, creating artificially inflated balances. The fact that you have legal representation and a fraud police report already filed puts you in an incredibly strong position. These companies rely on borrowers not understanding their rights - you're clearly not going to be intimidated. Keep fighting and please keep us updated on your progress!

This is absolutely infuriating but unfortunately all too common with private student loans. The unauthorized increase from $10K to $20K is textbook fraud, and the fact that you have a police report already filed is huge leverage. A few additional points to strengthen your case: 1. **Statute of Limitations**: Since you only recently discovered the unauthorized increase, the statute of limitations for fraud likely starts from your discovery date, not when it originally occurred. This could be crucial for any legal action. 2. **RESPA Requirements**: Even though this is a private loan, MOHELA still has obligations under various consumer protection laws. When you send that debt validation letter, also request proof that they're properly licensed to collect debt in your state - many servicers operate without proper licensing. 3. **Credit Bureau Strategy**: When disputing with credit bureaus, file separate disputes for each issue - one for the unauthorized loan increase, one for improper transfer notification, one for continued reporting while ignoring your attorney. This forces them to investigate each violation individually. 4. **Documentation Timeline**: Create a detailed timeline with dates showing: original $10K loan, when it became $20K (without your knowledge), your Chapter 13 filing/discharge dates, when Navient started collection, when you discovered the transfer to MOHELA, etc. This timeline will be invaluable for your attorney and regulators. The fact that they're ignoring your attorney is particularly egregious and shows they know they're on shaky legal ground. Keep pushing - you have an excellent case here!

Wow, this thread has become an incredible resource for anyone dealing with predatory loan servicing! Reading through all the detailed advice and strategies here, I'm amazed at how many violations these companies can rack up in a single case. As someone new to this community, I wanted to add that this situation perfectly illustrates why we need stronger consumer protections for private student loans. The fact that a co-signer can have their debt doubled without authorization and then transferred between servicers without notice shows how broken this system is. For anyone following this case or dealing with similar issues, I'd recommend bookmarking this thread - the community has essentially created a masterclass in fighting predatory loan practices. The systematic approach being outlined here (debt validation + CFPB complaints + credit disputes + attorney involvement + regulatory complaints) could be a template for others. @Anastasia Kuznetsov - your documentation and persistence are inspiring. The combination of having a fraud police report, legal representation, and now this comprehensive action plan puts you in an incredibly strong position. These companies count on borrowers giving up when things get complicated, but you're showing that fighting back systematically can work. Please keep us updated on how MOHELA responds to your debt validation letter. Your case could help set important precedents for how these transfers should be handled legally. Thank you for sharing your experience and helping educate the rest of us about our rights!