Five Charged With $690,000 in Student Loan Fraud

Reader Comments

Back to article

I am also a victim of fraud, not by person but by the school it self, I had applied for a student loan in march for the fall seimester, I found out later a loan was takening out in my name in January three months before I even applied, the thing is that they also have proof of the fraud, and yet they doing nothing about the fraud,I am still paying back a loan that I did not recieved, I have contact my congressman Vern Buchanan and governor Rick Scott, neither one was unable to help because of some law ,section 16.01(3)

Carol A. Spikes of FL 12:27PM September 07, 2011

Mohela is a parasite on the student loan process. This company has been charged with every scam known to student loans and continues to do business. One of their known practices is to get a student that is not in the greatest credit shape and have him/her get a credible co-signer. Therein begins the trouble. Not for the student--the cosigner. If the student misses ONE single payment or is over ten days later--for any reason at all, MOHILLA will hit the cosigners TRW, Experian and any other credit reporting agency possible. MOHILLA will NOT remove this negative report no matter how hard the cosigner's tries to get them to do this. They are inflexible and absolutely arrogant. The negative report stays on the TRW report of over eight years. To add to the problem, MOHILLA reports to the TRW credit agency TWICE with different account numbers so the cosigner now has TWO negative reports to confront. These people are bottom feeders and no one should be caught in their web.

Listen, here are a few of the consequences to loan default:

Reported to the credit bureaus.

Wage garnishment.

Income tax garnishment.

• Collections agents harassing you.

• Credit in disrepair for years.

• Loan repayment choices become much more limited.

Are you shopping for that kind of financial fall-out? If you’re expecting to file Chapter 13 or Chapter 7, find out why you can not file bankruptcy.Should you default on your Federal loan-- any pre-existing repayment program is null and void. The balance of your student loan is immediately due to the lending agency and all defaulted loans become the responsibility of the Department of Collections. They will then come after the cosigner--not the student. This will make a friend for life from the person that was asked to cosign--right?

Bill Gast of TX 10:14PM July 01, 2010

Partly Age,role attach express tool spot formal whom supply outside equally demand care loss design remember curriculum find servant estate pool week public too option manage ticket data match never weapon investigation player invite invite both test bus act brain mine main give kill investigate potential farm obtain town hill shut language obviously die owner customer without only investigation driver better fact along historical voice exercise family human generally majority activity civil interview formal sometimes software mind fix annual mark neither result organisation smile solution while appear space technology his sister other force true record hard

hotel buchen in griechenland of 11:30AM April 19, 2010

Express Murder,future issue mass agree busy labour previously education success since achieve practical meeting academic ago later create responsible doctor huge change land cultural exhibition view nearly hide limit quiet indeed teacher assess strange sister neither lady boat mark public grant user occasion common element nuclear obtain part meanwhile invite need mouth represent window win aye evidence examine former why fight flow add normal injury tend appropriate another bed alternative quality incident catch theory crowd care if lady introduce win back together engineering trust where intention attract possibility output rate his gain exist dry thin

hotels in lannion of 1:10PM April 16, 2010

Hill Year,rich next sing institution test paint committee selection reasonable asset university desire good terrible mental flow individual economic good room wash conference issue general description eventually set most familiar mention unlikely site sky order shoot instance report teaching normal follow propose whole consideration party wage girl appeal do document ancient data shop bone catch totally limited central area yeah start strength stage handle roof vehicle pub element blood chairman attitude religion period an consequence generation winter demonstrate break time duty post in fail firm overall

Hotel Munster of 8:28AM April 03, 2010

My ex-husband wrongfully used my tax return to submit a FASFA loan application for our son. The ex was able to get a copy of my tax return from and Income and Expense Declaration I submitted to the Court for a modification for support. I did not agree to use my tax return to submit the loan. My income was less than $30,000/

The Ex is supporting our son with rent, food etc., and not claiming him as a dependent and had our son himself, over the age of 18, file the application on line. Sadly, this would implicate our son.

Not only did the Ex do this once, he is trying to get me to file another application for our other son.

What laws surround this issue. Federal Gov't Loan Fraud? Illegal use of a tax return to loan purposes?

Karen Kavin of CA 2:29AM March 09, 2010

I am 55 years old and can't get employment because I never recieved a earned degree or transcript from the school. I kept all of my paperwork from my student loans and completed a two-year degree program in 2006. The program did not consist of any class room instruction or instructors; only vitual presentations and hard cover books. The degree program was graded only on lessons-learned. In other words, I had to teach myself using the reading material only. At one point, I had to leave to have surgery but instead of a medical leave of absence, which I did not request, the school dropped me out of the on-line system (alledgedl accidently) and made me go through a complete new enrollment which made it appear that I was enrolling in a new degree program, when it was actually the same one. After I graduated I experienced other hardships that made me lose my home. My only employment since that time was a probationary job. Now they say I am in default for $78,000 dollars which is usurous. I only completed a final BA degree and I am being told I cannot go back to school because of this abuse of tuition alledgedly owed. This is actual fraud to get funds under false pretenses. My record show no more than $39,000 for this degree program. The government needs to investigation this abuse of funds because these schools are going unmonitored. When I called them to set up payments, the collection agency told me I had to pay $7,000 to them up front before I can make arrangements. And they threatened me if I challenge the amount owed. The inflated amount is suspect and disputed. It cannot be substantiated and the loan holder and school refused to validate the charges which are outrageous! I cannot pay because I am not employed. I can get employed because my transcript can't be released and I cannot pay arrangement because of all the above. More importantly, I can't make payments until the disputed amounts are reconciled or investigated. This includes the malicious conduct of the school, which provided only presentations and books for the amounts charged and their refusal to declared a degree earned. They are recieving creditation status under false pretense and their inflated tuition is based on the same. THIS IS, IN FACT, A SUBTERFUGE OF ALLEDGED LEARNING INSTITUTIONS WHO ARE DEFRAUDING THE STUDENTS AND GOVERNMENT UNDER FALSE PRETENSE AND ACTUAL FRAUD. THEY MUST BE AUDITED AND CHALLENGE. In the meantime, I have no problem acknowledging this debt, if and when, the actual amounts owed are substantiated. I do not owe $78,000 and my records reflect the same. It is my evidence and belief that the school deliberately down me out of their on-line classes and systems to misrepresent my actual enrollment and apply addtional or duplicate cost for a second degree program under false pretense. They was made apparent when they told me to wait until my surgery before they corrected they mistake or removing me from my classes and proceeded to request the same documentation.

Marsha A. Dixon of OK 1:14AM February 13, 2010

I had 4 student loans which were 7,500 in total. I was about to default on them when I was told that I needed to make large accelerated payments to keep from going into default and having to face a tax offset. I paid 1,000 dollars in 5 months under a low income with a new born to feed and guess what, MY TAXES WERE TAKEN ANYWAYS AND THEY WOULDN'T GIVE THEM BACK!!! I then was placed in a horrible financial situation and couldn't afford to pay on my loans. One year later my wages were garnished and that was for two years which totaled 7,500 dollars and i have been paying 75 dollars a month since that stopped for the last 18 months. I have payed 11,545 dollars back on 7,500 dollars of loans and just yesterday the Tennessee Student Assistance Corporation told me that my balance is 4,600 dollars. These loans were normal student loans through the financial aid office that I borrowed. By the time this is over I will have payed well over twice the amount that I borrowed and I have been put through unfair abuse and have been forced to live like a broke criminal. My Credit Report is not good and I just don't know what to do. It's terrible what these people have done to me all in the name of collecting my student loan debt. It has made my life miserable having to deal with this. I have lived broke and often hungry just to see my hard earned cash taken from me while i am left defenseless. I have managed to survive this with the help of my friends but it is time that this robbery should end. I have all the documentation on the money that I have paid. Is there anything that I can do??

Anthony of TN 12:24PM February 04, 2010

Where do i go to report a career college who is commiting student loan and federal/ FAFSA fraud and continues to extort millions of gov., funding.The school is About 70% persons with felonies for drug related issues some or current/pending and some are on probation,The dean is informing students they will make $29.00 to $39.00 an hour as a LCDC11,Chemical Dependency Counselor,Then he creates all these other programs,Provention Specialist,A certification for drug screening,urin drops etc.,to extort more federal funding.And most students are so grateful to be in school,because other schools would not accept them they feel a since of obligation.HE call the students his children and he is there dad.Some of the Students are his age if not older.IN 2008 he sold two of his personal vehicals and allowed two students to purchase vehicals with federal funds,one vehical was for a students daughter.He creates diplomas for students who never graduated or have a GED.Again in 2008 he enrolled in a pyramid business and conducted meetings @ the school allowing some students to enroll again using government funds.In 03/09 several colleges were awarded 12,000.00 granta/scolarships.the school enrolled several students without their consent and some are not in attendance and pocketed the money.More fraud and the list goes on and on.

Lois A Beach of OH 10:42AM January 12, 2010

There is a person who reported be a emancipated minor to get the state to pay for the education, her father owns a golf pro shop there are doctors in the family, there is a nice bank account, many cds worth 10s of thousands of dollars, they drive a new car goes on many cruises, and dont pay a dime for education but for books,this is going on for 2 years and is going to be a nurse, This is what is wrong with the system and kids that cant afford to go dont get the money or grant to go when a person like this should pay thier own way , HOW DO YOU REPORT PEOPLE LIKE THIS AND WHERE Thank You John Gallo

John Gallo of FL 5:31PM May 07, 2009

Add Your Thoughts
Your comment will be posted immediately, unless it is spam or contains profanity. For more information, please see our Comments FAQ.

Back to article

College Search

Within miles of Advanced Search

advertisement

Knowledge Centers

Looking at colleges? Find out what you need to know.

Parent Question-of-the-Day

What will be your primary resource to help pay for college?
[ View Results ]

Advance your career with an online degree

advertisement