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Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008
0

Default or not?

Hubby and I were going through a difficult time a short while ago -- his dad died after a VERY long, debilitating illness and I suffered a stroke. Because of this, we fell behind in our student loan payments (though we did keep in touch with them and made payments when we could). Right now, we're hoping to GW the lates -=- but with the HEA and all, we don't expect anything. :smileysad:

So my questions are:

1) We actually were in the category "defaulted" in the SL servicer's online account system, BUT it was never reported to the DOE.

Does that mean we weren't in "real" default? If we WERE, does that mean that when we paid the overdue (and then some) that we essentially "rehabbed" the loan?

2) Despite our requests, they have continually failed to provide us with our payment history and promissory note. In fact, several times, they have said that they "don't know where it is" but that they will "find it" and send it to us (though they never have).

Does this give us some sort of edge in getting our lates forgiven?

3) We spoke to a CSR at the DOE who told us that they HAD to provide us with a promissory note upon our request. She also said that if they couldn't, they could no longer legally collect on the loan. However, when we asked what to do if they couldn't, she had no real answer. She basically said "Oh, they will. Trust me."

Should we mention that in talking to ACS about getting our lates forgiven?

4) Finally, our loans are being serviced by ACS, but the actual lender is Zion Bank (I think a part of Sallie Mae) and our guarantor is the Florida DOE. Who would we GW?

As you can probably tell, we're desperate for these lates to be off our CRs!!!

Thank you so much in advance!!!

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007
0

Re: Default or not?

As far as the Default is concerned
 
They can't mark it in default if you are in contact with them-
This is part of the HEA
 
Does their website have the payment history?
 
Do you have your PIN to access ed.gov and see all federal loans?
 
When you are caught up- GW will go to the servicer-
 
Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008
0

Re: Default or not?



Timothy wrote:
As far as the Default is concerned


They can't mark it in default if you are in contact with them-

This is part of the HEA


Does their website have the payment history?


Do you have your PIN to access ed.gov and see all federal loans?


When you are caught up- GW will go to the servicer-






Wow. I really didn't know that about default status. Whenever we spoke to them (the CSRs are all out-sourced to India, so it's hard to understand them, anyway -- no offense to anyone), the threatened us about how we were going default and would be in default if we didn't make a payment of $4K right then and there. Needless to say, knowing our rights at the time (we didn't, not by a long shot) would have been nice! :/

To make things more complicated, we originally took out the loan with another company ... then the company was sold to ACS. Since that occurred, our history prior to that point has been, along with the promissory note, it seems, been LOST.

That being said, the payment history online, goes back only 5 years. :/

We've seen them all at NLDS (or some variation) ... our problem is that we think we overpaid to a degree.

As for being caught up, we are now ... to the tune of over $5K. We even paid a little bit in advance (2 more months) just to make sure that no matter what happens, we stay current!!

Right now, our loans are being reported as late by SLFSA ... which I assume is Sallie Mae?? Our servicer doesn't seem to be listed at all.

Yeesh, Timothy! How do you know all this stuff?? This is all SO confusing!!!!!

Thanks for responding!!!

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008
0

Re: Default or not?

Bump?

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008
0

Re: Default or not?

*bumpity-bump-bunp*

Anyone, please??!

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Contributor
Nectarine
Posts: 83
Registered: ‎03-03-2008
0

Re: Default or not?



Wonderin wrote:
the CSRs are all out-sourced to India, so it's hard to understand them, anyway -- no offense to anyone, the threatened us about how we were going default and would be in default if we didn't make a payment of $4K right then and there. Needless to say, knowing our rights at the time (we didn't, not by a long shot) would have been nice! :/

To make things more complicated, we originally took out the loan with another company ... then the company was sold to ACS.




The out-source thing is why I don't bother calling anymore, the ones that *are* in the US are a--holes (I used to work as a CSR, so it bugs me more). I just spend 41 cents and call it a day. It's also easier to document what was said when they're writing you back.

Sallie Mae also bought all of my loans, they were ALL with different companies and SM wound up with them all anyway. I would suggest that you send a letter requesting a full payment history. If they decline, send a second one CMRR. It may also be worth it to contact the Dept. of Education to see what else you can do.


Griffin
Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008
0

Re: Default or not?



Nectarine wrote:


Wonderin wrote:
the CSRs are all out-sourced to India, so it's hard to understand them, anyway -- no offense to anyone, the threatened us about how we were going default and would be in default if we didn't make a payment of $4K right then and there. Needless to say, knowing our rights at the time (we didn't, not by a long shot) would have been nice! :/

To make things more complicated, we originally took out the loan with another company ... then the company was sold to ACS.




The out-source thing is why I don't bother calling anymore, the ones that *are* in the US are a--holes (I used to work as a CSR, so it bugs me more). I just spend 41 cents and call it a day. It's also easier to document what was said when they're writing you back.

Sallie Mae also bought all of my loans, they were ALL with different companies and SM wound up with them all anyway. I would suggest that you send a letter requesting a full payment history. If they decline, send a second one CMRR. It may also be worth it to contact the Dept. of Education to see what else you can do.


Griffin




Yeesh ... we sent it by mail but that was before we found this forum (now know to send CMRR) .. no response. We were told to ask by e-mail, once more, no joy. We asked via telephone convo with CSR (and it was recorded), still no joy. In fact, during the phone convo, she said that they (and I quote) "didn't HAVE it, but could probably FIND it."

Funny thing? After we flat-out asked over the phone, she tippy-tapped the keyboard for a bit, went silent, then put us on hold. She dropped the whole "don't have it" bombshell when she came back on the line.

We HAVE talked to the DoE ... they said they HAVE to furnish us with our history and our promissory note. When I asked "what if they don't or can't?" I was told, in essence, "Oh trust me, they'll have it and they'll give it to you."

The errors are just too numerous to count:

1) On the website, our loan amount is listed as $4K ... but with capitalized interest it's $52K!! Thinking this was an error on the website we called to verify. They, too, show $4K as being the original loan amount.

2) No CSR has ever been able to see our payment history prior to 2003-ish ... we got the loan in 2000.

3) We are on (and always HAVE been) on the level payment plan. Means every payment is the same amount, right? DoE even agrees this is so (and told me to ask what the hell happened, but CSRs can't explain ... which goes back to the whole "can't see past 2003" thing) ... our payments, when the loan was bought in 2002-ish was $242 ... it went from $242 to $504 monthly. On the LEVEL payment plan. I asked about "balloon payments" and they said that wasn't part of our plan. So WTF???

All of which leads to me to believe that either 1) we owe FAR less than what THEY say we owe (perhaps even paid off??? Who knows at this point??) or 2) Errors are being made and no one knows what the fix is!!

And, lastly, despite ALL of our begging and pleading to get this info fixed/explained ... no one EVER referred us to the Resolution Management Department (the woman we're speaking with NOW)!! They pretty much said "Oh well, my screen says this and this is how it is. Sucks to be you, I guess."

*sigh*

Please forgive me for ranting and raving ... but this has been so frustrating. It really has gotten to the point where I do believe that the least they can do, after ALL this, is to forgive a few late pays!!! :smileymad:

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Contributor
Nectarine
Posts: 83
Registered: ‎03-03-2008
0

Re: Default or not?

Has the resolution department been able to help you at all? Because $52K in capitalized interest is definitely an error. If you can't get any assistance from them, send a DV letter and ask for a copy of your promissory note and payment history. Give them a deadline of thirty days to get their act together, then dispute it on your CR as "refused to validate." It doesn't erase your obligation, but honestly you don't owe $52K anyway. It just gives the company an incentive to fix the problem, since they really can't do much until they find the paperwork.
Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008
0

Re: Default or not?

The woman we're working with is still reviewing our account/file. She's said already that she's not sure how many she can get forgiven. She said that she'll get with us sometime next week. :/

She was able to send us our promissory note ... there are a few errors (on the original lender's side, not ours) but they're fairly benign, I'm sure (address at the time, how much he was being paid, and DOB). But it DOES specifically state that we're on the level payment plan -- so it's funny how we went from $242 a month to $504 a month while on the LPP. Just doesn't sound very "level," does it? :smileywink:

Yeah, I don't really get how we owe $52K ... she's investigating that, too. Chances are, we probably DO owe that much, though. We did use up about 22 months of forbearance, so we've had the loan for about 8 years (Feb 2000)? Our original loan amount was approximately $28K (plus some change) and we financed at 8%.

I guess we'll see what we see next week. :/

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008
0

Re: Default or not?

Forgot to say that hubby says she's been VERY nice and VERY helpful. If she weren't in a position to save our collective behinds, I'd be jealous!! :smileywink:

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!


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