Clarification Needed

Anonymous · ‎02-07-2016

As everyone knows, Im in the middle of trying to untangle student loan issues. I went and dug through some old files, and found a few screen prints from my online student loan account with WF. And sure enough, those two loans are on that list. I also found a few "deferment applied" letters from WF as well.

Can you guys help me with one question that I still have not been able to figure out?

If all my loans were with one servicer (Wells Fargo) and Wells Fargo granted a deferment on my loans, why did 2 of my loans with Wells Fargo end up in collections?

SCF · ‎02-10-2016

Deferments are generally not granted indefinitely, they are usually time limited, or based on your enrollment status. Once the deferment ends, and payments are due again, the loan can go into collection status if payments aren't made.

What type of loans were these? What type of length and deferment did you have? You need to sort out what timeline your records support, and also what timeline Wells Fargo has for the deferments to see if there was some type of error.

Anonymous · ‎02-15-2016

Wells Fargo supervisor explained last week the loans were on the verge of going to collections. As soon as I was made aware, I faxed derferment papers (date on form was what rep told me to write) with a note of "urgent" on the cover letter. Superviisor last week told me (after reviewing account notes) Wells issued a recall for the collections and that the quarantor denied the recall request for these 2 loans only.

So I called I.S.A.C. (where the loans ended up) and the rep stated "if they acutally sent a request for a recall, there is no reason at all that we would have denied the recall request. The less we have on the books for collections, the better"

She told me call Wells back and ask them to send me proof that they attempted a recall. AND to ask them for proof that I.S.A.C. denied the request. She said, by policy, all communication between Wells and I.S.A,C, would have taken place in letter format.

Wells never communicated to me that that the two loans actually reached a Collection Agency or that a recall had even taken place and was denied.

The biggest reason it still upsets me is that my wages were garnished out of the blue back then and I practically got ambushed. A huge majority of whatever is left on those loans is pretty much collection fees and whatever. (I was eventually laid off, so garnishement ceased) But they were still able to collect a pretty huge portion.

SCF · ‎02-16-2016

I'm getting a little confused about the timeline here. Are the loans that were paid through garnishment different than the loans that you asked for the deferment on and spoke to the collection agency about last week?

What type of loans are these? I am guessing they are private, but Wells Fargo may have handled federal loans in the past.

If they are private, everything is governed by the contract you signed with Wells Fargo, including the process for loans that are in default, how they are moved to collections and what deferments you are eligible for. Asking them for a copy of that contract and reviewing it might help you understand if what happened was appropriate under the terms you borrowed the money.

Anonymous · ‎02-17-2016

Based on paperwork that I still have, this is all I could piece together

Urgent Deferment faxed (after speaking w/ WF rep) 5-28-2008

Illinios Student Assistance Commission (I.S.A.C.) - statement dated 5-22-2008

I.S.A.C Letter - Wage Ganishment Letter - 7-28-2008

I.S.A.C. Letter stating loans are in default and will be reported to all credit bureaus - 8-11-2008

Notice of garnishment from employer - 8-13-2008

I.S.A.C. statement (made payment of $75.00 until it could all be sorted out) - stmt date - 6-21-2008 to 7-21-2008

Wages involuntarly garnished

I get laid off - 4/2009 - dont return to permanent full time until 8-2011

*despite unemployment, loans continued reporting in default

I.S.A.C. Letter - "Wage Garnishment Bailout" offer via "College Zone" (???) - completed form faxed on - 7-17-2009

I.S.A.C. Statement - Total payments made approx $2,200 - 1-22-2009 to 7-21-2009

I.S.A.C. Letter - US Dept of Ed holds claim against defaulted loans notice - 8-8-2009

Colection Notice from NCO Financial Systems (on behalf of I.S.A.C.) - 6-3-2011

SCF · ‎02-17-2016

It looks like these may be federal loans (based on the involvement of the Department of Education) but they might be mixed with a state loan program as well given the Illinois Student Assistance Commission. Have you tried logging in to the National Student Loan Data System to see the current status of your loans?

If they are still in default and federal, rehab would be an option to get them back in good standing and stop the garnishment.

Anonymous · ‎02-18-2016

@SCF wrote:
It looks like these may be federal loans (based on the involvement of the Department of Education) but they might be mixed with a state loan program as well given the Illinois Student Assistance Commission. Have you tried logging in to the National Student Loan Data System to see the current status of your loans?

If they are still in default and federal, rehab would be an option to get them back in good standing and stop the garnishment.

At the time, including these 2 loans, WF had all 16 of my loans.

These two loans were my one semester attempt at grad school. I completed my 2 classes that semester but didnt return. I didnt like the program.
This was at Keller Graduate school through Devry.

Can somebody tell me who the guarantor of the loans would have been? SCF I dont know the difference between federal and state loans.

All I know is that I completed my FASFA the same way I did for my undergrad years.

SCF · ‎02-18-2016

If all of the loans were federal, the information will be in the National Student Loan Data System, including the name and contact info for the gaurantor.

Anonymous · ‎02-21-2016

On National Student Loan Data System, it's listed as Direct Consolidated Loan and

Servicer/Lender/Guaranty/

DEBT MANAGEMENT AND COLLECTIONS SYSTEM

I spoke to US Dpt of Ed on Friday she stated that their records only indicate that Wells Fargo was the servicer and my records reflect a zero balance. And that WF was paid through consolidation.

None of this is making sense. The rep had no record of I.S.A.C. (Illinois Student Assistance Commission)