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!
I just finished talking to a Department of Education customer service person and was told some not so good news. The reason why the Ford loans do not show up on the NSLDS site or any other sites like it is because it isnt a federal loan... It is a loan given out by the school that is in some way through the state the school is located in. Which is why it gets the "Federal Loan" tag on the promisarry note. But its a loan almost the equivalent of the school just outright offering you a loan. Hence why when I put a forebarence on ALL my accounts through the Department of Education these Ford loans seemed to not be put in forebarence. From the school side it does seem like I truly did ignore them when I look at the bigger picture after this new news. They only called me and send mail to me during 30/60/90 day period but that is all that tey are required to do. From my point of view I thought all of my money from college was paid for through loans, but from their point of view it looked as if I didnt care and ignored there calls to get their money back.
This is a hard pill to swallow because it seems that I may be forced to consoladate the full $15,000 debt with a high 20%+ APR. Me going down to the school to talk it over would seem hopeless now, they have no reason to budge. I can claim ignorance but I know as well as you guys know these schools are out for the money that they're owed. I can still make a fuss about the two "Wash Payments" that were credited and charged to my account but there is little that can come of that I'd imagine.
Thanks for the help anyway guys.
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?
I have already disputed the reporting inaccuracies through the credit bureaus about them not reporting month to month payments to my collection account. Nonetheless I pay it monthly on the 14th of every month. I'm not sure what more I could do. The collection ammount on my account is bad($15k+), but lenders and creditors not being able to see if i made a payment last month, last year, or two years ago is what makes my credit account toxic. No serious bank/union it seems will do business with me because of that...
What I'm going to say it's very important. I think the Dept of Education person is wrong, but let's go with what they said is right.
If I'm not mistaken, it becomes a private loan. Do not pay this! If this is indeed not federal loans, then they becomes subject to the statute of limitations and everything. No, they didn't have to contact you, but they should have because it was in their best interest. That they didn't does not reflect badly on you. Most people I know are unprepared to handle this debt when they graduate/ leave school so they ignore it or delay it. I was no different. The schools know this! But, at some point people try to get back on track. So why not send this debt to the collection agency where they would have hounded you until you paid? Why doesn't this show up on your credit report in collections or default? IMO, they wrote off the debt and choose not to sue you. If you acknowledge the debt, consolidate it or pay them you will only renew the statute of limitations. If you let the statute of limitations pass, you will always owe it (and you'll probably never be able to get your transcripts, but you can't get your transcripts until you finish paying the other school debt anyway) but they have no authority to collect through garnishment, etc. I would just let the time finish running out of it hasn't already. After all this time, I doubt they would sue you (if they even can). Check your state's statute of limitations. I also didn't think institutional loans were supposed to be offered in place of federal loans but idk too much about that.
Second, I don't think the Dept of Education person is right for several reasons. The promissory note is the most important document related to the loans. It cannot just arbitrarily say "federal loan" if it's not a federal loan. The other reason is because you got the promissory notes of the Federal student aid website, right? To my knowledge this is *only* for federal aid. I don't know why it's not on NSLDS too but it I think if it were a loan directly through the school I wouldn't expect it to be on any federal site. I could be wrong, but something seems off about their explanation.
On the notes, what does specifically call the loans? Is it only a Ford Loan or is it a William D. Ford (Federal) Loan? Does it say you are borrowing from the school or the gov/ Dept of Education? They are bound to the terms of the promissory note. Either way, I still wouldn't pay until they can straighten it out.
Yes, I would still pursue the payment error. It's $5,000. It wouldn't matter what payments you have or have not made on anything else. They made a mistake, for a significant amount of money. This is in addition to the mistake dynamicvb mentioned in not making sure you were offered enough federal funds to cover your first and second semester.
This is a rare situation that will take a bit of time and a lot of effort to get to the bottom of, but when it's fixed your credit will be in much better shape.
Wait wait wait wait wait.
First off when I called the Department of Education they told me to call Great Lakes because they handle the Stafford loans. Upon talking to the customer rep she was dumfounded for a bit trying to understand where or what my ford loans were or at. She first thought they were something called a "Perkins Loan" she then put me on hold to talk to her manager and her manager told her that no it wasnt a perkins loan but a school loan that is done through the state is a way. But its is a loan that the school does not the Department of Education hence why it wassnt on the NSLDS site. I said but it says federal right there in the top of the paper "William D. Ford FEDERAL Direct Loan Program". I was still told it wasnt through the Department of Education but the school.
Now you say not to pay this. I left school in May of 2014 it went into collections in the middle of 2016 I've been paying the collection for 2 whole years now. I've had countless calls to the collection firm to make payments because that was the easiest way. i think I'm screwed because I've not only been paying but I'm pretty sure they recorded every single call because they do a intro thing before we talk saying "This is a recorded call to collect a debt".
From a website at the top when I google statue of limitations in Virginia I get this:
"In Virginia, during the time period in which an account remains open, and no payment is made on the account, a collector has a statute of limitations of 3 years from the date of last payment or last charge for goods or services rendered on the account to file suit against a consumer.
If a debt is based on a written contract (non-Uniform Commercial Code) the statute of limitation period is 5 years."
Also yes I think the school did write the Ford loans off because they are clearly not visible anywhere and that means defualt.
Walk me through this, how do you just ignore the collection agency and wait until "it falls off". Won't another collection agency pick it up after they cant collect the first time? I've began to care less about getting the trascripts back now, I wasnt that focused in school there so the credits I'd lose out on are minimal.
And yes the prommissary note clearly says fedreal so I'm at a loss for words. Also it doesnt say exactly who I had borrowed it from but it does say that the school was the one who disburses the money to my account.
So are you suggesting I should stop the payments to my collections due to:
1. $6500 Stafford loan problem.
2. Payment error from them taking money in and out of my account twice with no explanation.
3. The school not advising me properly in not giving me enough money to cover the remaining balances from my first and second semester.
Time for a gameplan because this just took a complete 180 on me!