I had a substantial amount in student loans, but upon graduation I could not find a job and another one was too low to even cover my expenses. 3 years ago, I had an opportunity to pay back some of the loans and contacted the servicing agent that was on my credit report, and settled out with hemar, the servicing agency. I paid out about $75k as part of the overall settlement. About a year ago, I got a threatening call from NYS Higher Education Servicing Agency, saying that I owed them $100k!
They did not provide me with documents to support it other than computer generated ledger showing a total amount. They advised me to rehabilitate, and then pay about $1200 per month, but if I cannot pay the amount after I rehabilitate, I go back to default and I have no other option! I have been misled. I don't know how my consolidated student loans can be de-consolidated.
The servicing agent called my employer to notify them that there is a possibility of garnishment and they threatened to do so. What are my legal rights? The servicing agency took money out of my account without authority based on my good faith effort to provide them with my information, and also to get information to support their claim. I dispute the amount as being wrong, or doubled, or miscalculated. I switched my bank as a result and notified them. Nothing has worked.
I don't understand how I can consolidate my loans through direct loan servicing and later, have this account de-consolidated. I processed paperwork, so shouldn't the paper trail follow?
I need help. If anyone can help me, or provide me with info, or what processes are, I will be most grateful.
Mia from New York, New York
By Brenda Chavis (Guest Post) 05/22/2006
This happened to my husband also.
Contact someone from the Attorney Generals office in your state.
They will tell you what collection practices are legal, and which are not. File a grievance against the company for any illegal practices they have used.
In NC there is no charge for this, to you.
Also contact the better business bureau in your state, and file a complaint against the company.
Make a copy of everything you send to anyone, for your records, and keep notes on any phone calls, taking names on who you are talking to.
Also send copies of your complaints filed, to the company who is harrassing you, and tuck in a letter explaining that you know the collection laws, and are having them enforced on their company. (keep a copy of your letter also.)
You will find that they will leave you alone very quickly.
Hope this helps.
By Anonymous (Guest Post) 05/25/2006
Just a little history for your FYI, apologies if you're already familiar with this...This is not uncommon for student loans. Unlike credit cards, a student loan is secured debt that you promise to pay back when you sign the promissory note. The government has the right to garnish wages and taxes if your loan has been claim filed. Also, student loans do collect interest. Interest is capitalized on your loan when your loan is unpaid. Basically, once interest is capitalized it becomes an added amount to your principal and you continue to collect interest on principal + the capitalized interest. It sounds like the loan servicer and lender has since filed a claim on your loan and NYS now is trying to collect back on the loan. Depending on how long the loan has been claim filed, the 100K is not an unlikely amount. I am concerned that you said you settled and made payment to HEMAR. It is very rare that any student loan company or collections agency will settle. If they did settle and your loans were paid off you would have gotten a paid in full letter. The persons advice regarding the Attorney General's office is a good place to start. You should collect all evidence of the 75K payments that you made and follow the persons advice posted above. You should also try contacting the NYS higher education again once you have compiled some evidence and discuss the situation with them, you need to get a manager on the phone because the customer service reps are most likely not trained to handle your type of situation.
I have record of my payoff. What is disturbing is, that when you apply, I only filled out one student loan applciation. I consolidated into one loan. I mean, is there any other kind? I have been advised that the consolidation was not in "complete". and that I might not have consolidated all the loans. But, the loan documents provided to me by a servicing agency was the basis of which I paid off a lump sum. And, collection agency, General Revenue Corp which was servicing for HEMAR before is claiming that my loans were not consoldiated! And it went thru two separate consolidation ways. I can understand that if I did not pay at all....but I did pay a lump sum, and I have never gotten back my taxes both federal and state...so, they should have the burden of showing me that I owe sum certain. What are the debtor's rights here? How can consolidation be in effect, 'deconsolidated or ineffectively consolidated? Isn't that the point of consolidating? I began keeping journals, and notes, letters and faxes, and certified mails.
I appreciate all this help.
Editor's Note: It sounds like you have all of the proof you need to fight this. I'd call your states attorney or attorney general and ask them who you can deal with on this. One call from them and sometimes these things can be straightened out quickly. You can also call your U.S. representative or Senators. They may be able to help also. Make sure that you only send copies of your proof and keep the originals.
Let us know how this turns out.
Susan from ThriftyFun
By noktor (Guest Post) 08/02/2007
When it comes time to consolidate student loan debt, a person should take several things to do
in consideration. The services will make the process that much more convenient and easier to manage.
Also, the student will likely have questions throughout the loan repayment;
For More Infomation about Student Loan
Please click here http://studentloan2007.blogspot.com/
By Peter Charles (Guest Post) 08/09/2007
Come visit our website at http://www.studentfinancialadvisors.com
Complete the registration process and we will try to get you out of your mess.
Register on our website http://www.studentfinancialadvisors.com
we will try and help you.
By Guru (Guest Post) 09/16/2007
Check out this website and all relevant forums (google search) before signing any dotted lines: http://highereducationscam.blogspot.com/
By Guru (Guest Post) 09/17/2007
Read before you sign
By Nik (Guest Post) 09/27/2007
Make a concise list of all the facts, names, dates, etc. and write ASAP to this office in Congress:
Michael C. Zola, Esq.
Chief Investigative Counsel
Committee on Education and Labor
U.S. House of Representatives
1107 Longworth House Office Building
Washington, DC 20515
By Student Loan Consolidation (Guest Post) 11/28/2007
Are you a student who is your own guardian? Don't die paying all these lenders while you can comfortably pay one and evade a difficult life. Defaulted student loans can get so cruel. It means your credit history is destroyed, options for delaying credit like forbearance and deferment are rejected and you are in for a full loan payment. And guess what, your wages are affected, federal income tax is withheld and yet chances of getting other federal loans reduces.
Poly Muthumbi has been researching and reporting on Sstudent loan consolidation for years. For more information on student loan consolidation, Visit her site at http://www.gofixa.com/?p=3
By DEFAULTED STUDENT LOANS (Guest Post) 11/30/2007
When I think of defaulted student loans, I get vexed because I would not like to fall prey to this embarrassing scenario, not for one second! Defaulted Student Loans can get you so devastated that it hurts for the rest of your life. Yet it may not be your willpower for it to happen. It may have been an unavoidable reason, like problems at home or incapacitation. But then you can not ignore the fact that some of us disregard responsibilities to pay for the student loans and as a result keep a bad credit history.
Poly Muthumbi is a Web Administrator and Has Been Researching and Reporting on Student Loan Consolidation for Years. For More Information on Student Loan Consolidation, Visit Her Site at: http://www.gofixa.com
By www.studentloandedtnomore.com (Guest Post) 12/14/2007
By Harold Sewell (Guest Post) 08/02/2008
I am not sure who can help, but go to studentloanjustice.org and post your story there. Alan Collinge, who started that site, is working very diligently to get these stories out to the media.
By A. Key (Guest Post) 10/16/2008
How about my loan was stolen, and now I have my wages garnished. This is an original loan of 35,000.00 that is now over 100,00.00. American Student Assistance stole my loans from Direct Student Loan and Sallie Mae. I am trying to get justice. My original lenders allowed American Assistance to purchase the loan without notification from me. I refused to pay them.
I am certain an employee saw documents on a loan that I was told could not go through, because of a higher amount. to include all interest. Approx. 9 months later, I receive bills which I thought was junk mail. I threw it away at first. I started to pay them but they wanted payments I could not afford. Now they are garnishing my check. Funny, my loans until American Student Assistance stole them were in forbearance. I had recently salvaged my loan through rehabilitation. Anyway, where do I start to get Justice? Jailed by student loan fraud. HELP
By Thomas M (Guest Post) 10/24/2008
I was rehabilitating my student loans with Rhode Island Higher Education Assistance Authority when after six months General Revenue Corporation bought my loan from them. RIHEAA mailed me a letter stating this and I contacted GRC to set up the payments of $185 on the 10th day of every month.
The first payment was told to me to have returned as insufficient funds by a male representative of the company. I looked at my bank statement and found that I had more than a $1000 in the bank that day. I told him what the account said so he said it may have been an error on their part and said he would send a letter on how to rectify the problem and I received it and did what the letter stated.
Now that I am trying to get a Title IV loan for school and the mess up on their part is keeping me from getting my loan. Every time I call I am informed that my case worker is someone different than he/she was the previous call. My case worker is always in a meeting or out for lunch no matter what time I call. I am told that the person return my call, which never happens, and when I call my case worker has changed again.
The only consistent thing is that I am advised that this is an attempt to collect a debt and the call may be recorded for training purposes. I was told to fax the proof that there was money in my account on that day and and they will correct the problem. I did that. Now I am supposed to be contacted by the supervisor who has the authority to overturn the case. No phone call yet. I've called again and still I am chasing my tail. What can I do? Help me, please.
By Kathy from Kansas City. MO (Guest Post) 01/02/2009
Unfortunately, I don't have the answer for how to help, but the same thing has happened to me, though I haven't yet paid it. I only took out about $5,000 in Student loans, and they just sent me a bill for $15,000 -- and the interest is even higher than my previous interest had been.
So much for consolidation... I am going to talk to my lawyer about the possibility of a scam and I will let you know if anything changes for me.