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Student loans in collection

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Anonymous
Not applicable

Student loans in collection

I had enrolled full-time for a semester back in 2004 and lost my medical insurance a couple days prior to the semester's start date. As a result, I was unable to afford my medications or medical treatment and became very ill/disabled over the course of 3 months. My doctors advised that it would be in my best interest to completely withdrawal from the semester until my medical insurance situation was resolved and resume my academic career afterwards. I discussed my medical disability with my school counselor and was advised to file a request for a retroactive withdrawal (I had missed a deadline for a regular withdrawal) along with all of my medical documentation. I filed all the paperwork as instructed and contacted the school's financial aid office, so they would return all the student loan money that I was awarded for that semester. The school's financial aid office complied, since I had verified that I never actually attended due to my medical disability. The lenders all received the student loan money I was awarded and I never received any indication from the school that there were any issues with my retroactive withdrawal application. It wasn't until late 2007 when I received a letter from the state's central collection unit; that I discovered the school never properly processed my retroactive withdrawal application with the registrar's office and they were still trying to charge me tuition and fees for the semester during which I was medically disabled. Even though their financial aid department had verified I never attended and returned the student loans to the lenders, the registrar's office never seemed to have received this information and I was still being charged the tuition debt for that semester in 2005. Had I received correspondence from the school regarding an approval or denial for the retroactive withdrawal application; I would have continued contacted the school to resolve the matter at that time. Unfortunately, I did not receive any further indication from the school that the retroactive withdrawal was not processed correctly nor did the debt appear on my credit reports until the debt was sent to the state's central collection department for payment 3 years later! I submitted a request for an investigation with the central collection unit along with all the documentation that had been submitted back in 2005 to the school and the confirmation from the lenders that they had been refunded the student loans related to that semester. I also included all the medical documentation that was submitted, but they could not remove the debt simply because the school had provided them with a bill in my name for tuition during that semester. I went ahead and contacted the school's Office of Student Relations and the president was very helpful in re-submitting all the paperwork to the registrar's office in the form of an appeal. As it stands, the registrar's office has been unable to provide me with any documentation proving that I actually attended (there are no final exam grades or records from the professors of the courses I was enrolled in) and my appeal request was supposedly being submitted to a Committee Board at the school for review. I have not heard back from the registrar's office (despite repeated emails and voicemail messages) or any department of the school in response to either the original retroactive withdrawal application filed in 2004 or the appeal filed in early 2008. I still have this debt listed as a collection on my credit report and it is ruining my credit. What should I do? Is the school essentially violating my rights under the ADA to retoractively withdrawal me from a semester during which I was medically disabled and for which they have no proof of my actual attendance? How do I get rid of this false debt? Please help!
Message 1 of 4
3 REPLIES 3
Anonymous
Not applicable

Re: Student loans in collection

What a MESS!  Talk about the right hand not knowing that it is attached to the same body as the left hand.
 
Sounds like you've done everything right at this point.  No idea about any ADA impact on credit reporting, though I would be interested to know if the ADA could possibly impact credit reporting.  Have a feeling it doesn't.
 
So it sounds like where you are right now is in an appeal with the Registrar.  No clear next step, but this is what I would do:
 
~CMRRR letter to the actual registrar explaining that your case is in appeal, but you haven't heard anything yet, and we're now almost to the fourth quarter of the year.  Please let me know if you need any further information or documentation from me.  This situation is particularly disturbing because this is showing an unpaid debt on my credit report, and severely impacting my ability to get credit.  I fulfilled my responsibilities to the school in 2005, and have been shocked at the lack of communication between departments.  The appeal should be resolved in my favor, and the university should remove all reference of this unfortunate internal miscommunication from my credit reports as soon as possible.
 
~CMRRR letter to the university president (and any other VP-like the Office of Student Relations-you can find) outlining the whole situation.  Use paragraphs, and explain step by step.  Explain that you are frustrated by the lack of progress in resolving your appeal in the registrar's office.  This situation is particularly disturbing because this is showing an unpaid debt on my credit report, and severely impacting my ability to get credit.  I fulfilled my responsibilities to the school in 2005, and have been shocked at the lack of communication between departments.  The appeal should be resolved in my favor, and the university should remove all reference of this unfortunate internal miscommunication from my credit reports as soon as possible.
 
Keep at it until they resolve.  This is an internal university problem, and you just have to get to the right person to make the departments talk to each other.
 
I don't think I would go the traditional route on this--the DV's with the CA, all that.  I would stick with harassing the univ administrators until they fix it. 
Message 2 of 4
LynnInMN
Frequent Contributor

Re: Student loans in collection

As it stands, the registrar's office has been unable to provide me with any documentation proving that I actually attended (there are no final exam grades or records from the professors of the courses I was enrolled in)
 
Attending a class and registering for classes are not the same thing.  You registered for classes...that is all the school  has to provide as proof for the bill. Actual attendance at a class is a moot point. 
 
Now..I used to be on a committee that decided medical withdrawals.  Part of the criteria for doing a retroactive withdrawal was that you A-could not withdraw by the  correct withdrawal dates due to an illness or hospitalization and there was no way of continuing the course.  Example would be someone who had a car accident 3 week into school and had no way of getting to or communicating with the school.  B-the condition did not exist prior to enrollment or the student had no forseeable way of knowing that it would get worse.  This is where at least at the university I worked at you would have been denied.  You went off your meds prior to the drop/withdrawal dates so it was forseeable that your condition would worsen.  It is like a insulin dependant diabetic stopping taking their insulin....they have reason to know that their condition would get worse. 
Ex-Financial Aid Officer

Ex-Student Loan Collector
Message 3 of 4
Anonymous
Not applicable

Re: Student loans in collection

Thank you so much for your response - I really appreciate your advice and will continue pursuing the university officials for a response in regards to my appeal with the Registrar's office and the removal of the unpaid debt from my credit report.
Message 4 of 4
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