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*Updated* Advice Needed! College Collection is Haunting Me

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Established Member

Re: Student Loan Collections Are Haunting Me: Halloween Special


@Sabii wrote:
No, to my knowledge Federal loans are always federal loans they just get bounced around to servicers and collection agencies. This is the case
even with loans that are from the '80s and '90s.

What about the studentloan.gov or studentaid.gov site? I know what you mean about not wanting to poke the bear. It might be necessary though because if these are federal loans you can do something.
It's not so old that they shouldn't easily be able to fulfill a request for a copy of the Promissory Note. And you should be able to discuss with the school, although I would be careful about admitting the debt is accurately yours or admitting that you owe the money.
The reason I brought up the part about those four "payment"s is if you can discuss this with the school and find out what it means, maybe they weren't supposed to be reversed. This would wipe $4500+ off the debt if it were a lucky error. 😁

 

I’ll check studentloan.gov and studentaid.gov out to see what they can do. I’ll go “poke the bear” and go see what those two charges at the end are as well as if that Ford loan is indeed a federal loan. Also how would I have to request through the school on how to fulfill a request for a copy of the Promissory note or would I have to call someone else?

 

I can only hope that that’s all an error and can get it fixed. I think deep down inside I want the whole collection amount to be taken away from me but That’s unrealistic. At the end of the day I’m going to have to pay it it’s only a matter of how much now. And with my bad credit (because of the collection) will I be able to get it consolidated without a 20.00+ APR on the loan ugghhhh.....

 

Once again I’m thankful for you taking the time out to help me with this situation.

 








Message 21 of 36
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Valued Contributor

Re: Student Loan Collections Are Haunting Me: Halloween Special

Perfect!
Yes, so:
1. Check the gov website to see if any addition Federal loans are listed.
2. Contact the school to see why they reversed those two payments. Possibly ask what the Ford Loan is.
3. Ask the school for a copy of the promissory note.

Sadly, I agree. You're going to have to pay something. Since you have made payments I think it refreshed the SOL. Eventually the debt will be paid off. I do know that you can rebuild your credit around it in the meantime. You went get the best credit cards right away but if you start with a secured cards like Discover or Capital One if you qualify and they graduate to a regular card, you'll see your score gradually improve. This post breaks it down:
ABCD2199's Eleven Rules to Credit Rebuilding
https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/ABCD2199-s-Eleven-Rules-to-Credit-Rebuilding...

You're most welcome and if you have any more questions feel free to ask.



Message 22 of 36
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Valued Contributor

Re: Student Loan Collections Are Haunting Me: Halloween Special

Okay, I'll answer one of the questions, yes the Ford is a federal loan. That will not be kicked back tot he school. The reason I asked about the 60% is if your last day of attendance was less than 60% of the term, then the school has to pay the Pell grants back to the Government with a return to title IV. They can then charge the student for the money they had to repay the feds.

 

The student loan would not have been kicked back. Once you signed that paper accepting the loan it was your money and you are responsible. The school has nothing to do with that at this time.

 

What I would do is this: Contact the Provost or the VP of Administrative Services( Might be VP of Finance). Or you might need to go to the President if you can get in the door. Explain that this is causing a hardship on you and that you were not given good advice on what you were responsible for and the ramifications of you not completing your education. Explain this is causing you issues with your credit and your ability to be a productive member of society, bla, bla, bla.

 

Basically, appeal to the fact they are educators and their first goal is to help students. Tell them you want to pay for your mistakes, but ask them for some type of forgiveness and their help with getting you out of this hardship. Ask if they can accept what you have already paid or come up with a manageable payment plan for a portion anything to help you get your life back on track.

 

The school has already written off these receivables, so they may help you out. They are not likely going to remove the holds on your account so you would not be able to attend there again without paying it all, but you may be surprised at how far a truthful and frank discussion may get you. Don't do this on the phone, set down in an office and talk openly, won't hurt to cry.

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Message 23 of 36
Highlighted
Established Member

Re: Student Loan Collections Are Haunting Me: Halloween Special


@Sabii wrote:
Perfect!
Yes, so:
1. Check the gov website to see if any addition Federal loans are listed.
2. Contact the school to see why they reversed those two payments. Possibly ask what the Ford Loan is.
3. Ask the school for a copy of the promissory note.

Sadly, I agree. You're going to have to pay something. Since you have made payments I think it refreshed the SOL. Eventually the debt will be paid off. I do know that you can rebuild your credit around it in the meantime. You went get the best credit cards right away but if you start with a secured cards like Discover or Capital One if you qualify and they graduate to a regular card, you'll see your score gradually improve. This post breaks it down:
ABCD2199's Eleven Rules to Credit Rebuilding
https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/ABCD2199-s-Eleven-Rules-to-Credit-Rebuilding...

You're most welcome and if you have any more questions feel free to ask.

 

Okay busy morning I had:

 

I checked both websites that you provided and learned and found sooo much. First off it comes to find out I was incorrect in my earlier statements about my Stafford loans. Aparrently i have one of each subsidized & unsubsidized loans individually with both colleges that I attended instead of all of my Stafford loans only being with my first year college. That was interesting to find out because I've sworn up and down I havent had any loans with my second college.

 

I learned that I indeed do have  four William D. Ford Federal Direct Loans that are subsidized/unsubsidized from my second college that is in collections. These do not show up alongside my Stafford loans or record of pell grants on the My Federal Student Aid website. But when I go to studentloans.gov under my documents and click on "Master Promissary Note" they had all of my Ford loans all broken down clear as day!

It was crazy because it showed every detail from the interest to the fees I paid upfront. Nearly $6500 of my collection ballance is the Ford loans. I'm thinking thats a big deal seeing as now I have options as you said to either rehab or consoladate. I dont know why I'm happy that I have loans here, its weird! Smiley Happy

 

As for the promisary note there was no need to call the school because I was able to find and print them out  from the websites you provided so I know that its real. BIG breakthrough here! 

 

Last but not least after all of this new knowlege and ammunition I felt like I had enough to call the school and start asking questions about the payments of $1,562.50 and $3,125.00 that were being credited and charged to my account at the bottom. The lady had to put me on hold multiple times to figure out exactly what they were. She told me it was a company who handled the colleges payment that "I" had approved of. I sat there and was dumfounded because nor did I ever approve of the company who did these transaction to my account she

talked to me like i should know who they are. I then did a quick google on the phone of who this company is and the website gave me the ol fake "503 Service Temporarily Unavailable" i told her that the website didnt exist/work and she said that they have changed to a new company to handle their payments.Smiley Frustrated

 

So I continued to prod her about what is these payments and she tells me well as you can see there was a charge and then a credit so it was "A wash" I said i dont care why is there money being put in and taken out without anybody truly haveing a answer as to what it was supposed to be. It could of possibly been some aid or something that was supposed to put my balance down lower. She then took my phone number and said that she would call me back in a hour after she crunches the numbers.Smiley Indifferent

 

I don't know what to think here because apparently there's something sneaky going on or maybe a disconnect and she doesnt know how to explain the balance.

 

I'll keep you guys updated

 








Message 24 of 36
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Established Member

Re: Student Loan Collections Are Haunting Me: Halloween Special


@dynamicvb wrote:

Okay, I'll answer one of the questions, yes the Ford is a federal loan. That will not be kicked back tot he school. The reason I asked about the 60% is if your last day of attendance was less than 60% of the term, then the school has to pay the Pell grants back to the Government with a return to title IV. They can then charge the student for the money they had to repay the feds.

 

The student loan would not have been kicked back. Once you signed that paper accepting the loan it was your money and you are responsible. The school has nothing to do with that at this time.

 

What I would do is this: Contact the Provost or the VP of Administrative Services( Might be VP of Finance). Or you might need to go to the President if you can get in the door. Explain that this is causing a hardship on you and that you were not given good advice on what you were responsible for and the ramifications of you not completing your education. Explain this is causing you issues with your credit and your ability to be a productive member of society, bla, bla, bla.

 

Basically, appeal to the fact they are educators and their first goal is to help students. Tell them you want to pay for your mistakes, but ask them for some type of forgiveness and their help with getting you out of this hardship. Ask if they can accept what you have already paid or come up with a manageable payment plan for a portion anything to help you get your life back on track.

 

The school has already written off these receivables, so they may help you out. They are not likely going to remove the holds on your account so you would not be able to attend there again without paying it all, but you may be surprised at how far a truthful and frank discussion may get you. Don't do this on the phone, set down in an office and talk openly, won't hurt to cry.


 

 

Yes you were correct about the Ford loans thank you!

 

 I downloaded and printed the Master Promissary Notes to all four Ford loans from the websites @Sabii had mentioned which totaled $6,500 in Ford loans.

 

My Pell Grants have not been charged to my collections so there is no problem there, and they show up on the financial aid websites so I think I'm good on that.

 

Piggybacking off of what you said I may have to take a trip down there like you mentioned so that I can possibly see if they can see the situation more humanely. That $4,000 that was added to my balance due to it going into collections is very hefty and I will fight that if given the chance.

 

On my other comment I should be hearing back from the school so that they can explain the balance because even the woman who was handling my account was taken back and confused. So I'll be posting a update on that.

 

Thank you guys!








Message 25 of 36
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Valued Contributor

Re: Student Loan Collections Are Haunting Me: Halloween Special

That's great! I'm glad you were able to find them. Like I said, I was pretty sure Ford was a federal William D Ford Loan but since it wasn't on the NSLDS, it was confusing.

Okay, so back to square one, what we were talking about before. Find out where those loans are. They should actually be on your credit report, with the loan servicer listed. If not, they might have defaulted and sent to a collection agency (highly likely at this point). No big deal, you can rehab.
You mentioned they are for $6500 in Federal loans. Is that including the loans from the other school you said are in good standing?

I hope you get a positive answer from the school. I find it odd that their description for every other transfer or application of payments is so specific until those 4 lines, two of which are clearly deductions not payments. It also happens several months into the semester, not near the beginning.

Good luck with the school and look forward to more info on the loans.



Message 26 of 36
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Established Member

Re: Student Loan Collections Are Haunting Me: Halloween Special


@Sabii wrote:
That's great! I'm glad you were able to find them. Like I said, I was pretty sure Ford was a federal William D Ford Loan but since it wasn't on the NSLDS, it was confusing.

Okay, so back to square one, what we were talking about before. Find out where those loans are. They should actually be on your credit report, with the loan servicer listed. If not, they might have defaulted and sent to a collection agency (highly likely at this point). No big deal, you can rehab.
You mentioned they are for $6500 in Federal loans. Is that including the loans from the other school you said are in good standing?

I hope you get a positive answer from the school. I find it odd that their description for every other transfer or application of payments is so specific until those 4 lines, two of which are clearly deductions not payments. It also happens several months into the semester, not near the beginning.

Good luck with the school and look forward to more info on the loans.

So my Ford loans are not on my credit report like my Stafford loans (which I pay monthly) so like you said I think a rehab of those would be in order. My next question is for my ford loans which total about $6,500: 

Once I rehab it is it moved from my collections and treated again like a intallment loan like my Stafford loans are? And if yes will it finally start showing month to month tracking as paid like everything else on your credit report shows?

 

To answer your question about my loans is I have been paying my Stafford loans which are at about $11,000 for four years now. The Ford loans that have been defualted/put in collections are around $6,500 if I calculated it right from the Master Promissary Note, that is a seperate pot now.

 

After talking to the school again I grilled the person who was handling my account about the situation and come to find out that the school had made a mistake. After finishing my fist semester at the school I entered my sencond semester with a balace of almost $5,000. I'm sure you cant start the next semester without having a $0 balance. I told her that the school failed me as a student by not even offering or suggesting me loans that would cover those balances so that both parties would have been covered. After realizing I wasnt going away and that my situation had some merritt of wrong doing by the school she advised me to talk to the financial aid office and hash it out with them.

 

So this week I will be doing that. I feel I may be getting closer to a resolve of this but I have alot of work to do. I have to travel on business because of my job on Tuesday and wont be finished until Friday so this week will be a squeeze to get something done with this. But I will find time and get this solved. 

 

Thank you for the help guys!








Message 27 of 36
Highlighted
Established Member

Re: Student Loan Collections Are Haunting Me: Halloween Special


@dynamicvb

What I would do is this: Contact the Provost or the VP of Administrative Services( Might be VP of Finance). Or you might need to go to the President if you can get in the door. Explain that this is causing a hardship on you and that you were not given good advice on what you were responsible for and the ramifications of you not completing your education. Explain this is causing you issues with your credit and your ability to be a productive member of society, bla, bla, bla.

 

Basically, appeal to the fact they are educators and their first goal is to help students. Tell them you want to pay for your mistakes, but ask them for some type of forgiveness and their help with getting you out of this hardship. Ask if they can accept what you have already paid or come up with a manageable payment plan for a portion anything to help you get your life back on track. 

 

The school has already written off these receivables, so they may help you out. They are not likely going to remove the holds on your account so you would not be able to attend there again without paying it all, but you may be surprised at how far a truthful and frank discussion may get you. Don't do this on the phone, set down in an office and talk openly, won't hurt to cry.


 

Smiley Wink

I will definately look into doing a visit to the campus to meet with either the VP of Finance or even the President. You are right, a face to face conversation may pay dividends if that can sway the schools decision to be compassionate in my situation. Thank you for this suggesting this option @dynamicvb








Message 28 of 36
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Valued Contributor

Re: Student Loan Collections Are Haunting Me: Halloween Special

That's odd that you cannot see the loans on either the NSLDS or on your credit report. If you don't know that they're with a collection agency (I would think they would be). I would make some calls like to the Dept of Education and find out exactly what the status of the loans are and who they're with.
If you can confirm that they're with a collection agency, yes, I would consider rehabbing (or consolidation of that is right for you). Rehab will require you to make a certain amount of payments, which can be lowered based on your income and expenses. When it's done, those loans will be sent to a loan servicer and show up like a regular student loan. As you make "ok" payments, it will show up just like your other one.
You can only get them out of default this once.

Now you can pick whatever repayment plan you like again, Standard, extended, IDR, etc.

You know, if they're willing to admit fault for the $5,000 that shouldn't have carried over, maybe they will say those two payments at the bottom shouldn't have been charged back. That will erase almost $10k in the school debt if things go your way and if you subtract what you've paid so far and the collection fees (if they'll waive them) you'll barely owe anything to the school!

You've made an impressive amount of progress already so don't worry. Happy travels!



Message 29 of 36
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Visitor

Re: *Updated* Advice Needed! College Collection is Haunting Me

How is the account reporting?  If it's not reporting accurately, that will give you some ammunition depending on how you dispute it.  Are you in a payment agreement with them and if so, are you making your payments according to the agreement?

 

 

Message 30 of 36
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