HILARIOUS response from Direct Loans!!

[Anonymous]

Okay, here's the back story.  Long story really short, I had a 60-180 day late on a direct loan that I later consolidated.  So on my report is an old, closed DL with a 180 day late.  I have been perfect on my consolidated loan for the almost 2 years that I have had it.

I e-mailed DL to inquire about a rehab program or something so I could get that negative information off.  They said no.  Rehab is only if you default.  And, you only default if you go 270 days late.  But if I were to default, I could then enter rehab and get the negative info removed.  I thought this was interesting, so here was my response to them:

Hello,

Thank you for your reply.  Let me see if I understand.  I went 180
days late on my loan, and then returned to a positive standing.  If I
had gone 270 days late, I would have been in default.  If I defaulted,
then I could enter the rehab program and make 9 on-time payments and
be reinstated with the negative history completely removed.

However, if I get my act together and start paying again after I go
180 days late, I can't get that history removed.  That doesn't make
much sense.  You reward the people who default, but not the people who
fall behind, but then make good on it.  Is this correct or am I
mistaken?  Thank you ahead of time for your response.

And then their reply that I just received this afternoon (short and sweet):

Dear Direct Loan Borrower,


Thank you for your email inquiry. Please be aware that we do regret any inconvenience, however you are correct.



Sincerely,
The Direct Loan Servicing Center Email Support

So basically, yeah, we screw over the people who take responsibilty, but not the ones who default.  I am not done GWing them though.  I will start snail mail letters though and see where that goes.  Enjoy.

[laz98]

how old are those lates?  they might not be hurting you as much anymore.

[Anonymous]

I'd like to let you know about a very interesting thing called a promissory note. That in advance let you know when you would start receive negative reporting, after 60 days past due. The prom note also lets you know that Direct Loans has options to avoid negative reporting if you have a hard time making payments. They go way beyond any other federal lenders for helping borrowers. To clarify your questions about default, you default at 360 days past due. If they start negative reporting @ 60 days past due and every 30 days past that, think what is being done to your credit score in the meantime. Once the account defaults you no longer deal with direct loans.You have to make arrangement with the Department of Education (DOE). All this time negative reporting is still hitting your credt score, and in addition to your loan debit you are still accuing intrest, and now you are being charged late fees and posible financed charges. In order to rehab your loan back to Direct Loans you have to make payments with DOE they determine how much and how long. Now that you have added extra debit to your balance these payments could be high, and if you miss one of these payments the rehab is over, you would still be with default, no progress. Default in to rehabbing is far from a reward. I have an answer for you. It's not an answer you will like. You sighed a contract that agreed to pay back a debt you took out for an education, If you where experiencing a hardship you did not call Direct Loans for any options. You went past due. You did not take care of your debt responsibly. You are angry that they did what they told you up front what they said they would do. Read your promissory note. You agreed to the terms and conditions. I also wanted you to know you that writing letters to them will not change a thing.

[Tazman81]

Actually you would have needed to do the rehab PRIOR to consolidating your loans.  The rehab would have been with whichever lender you had your loan with at that time and would have been a rehab on that particular loan to get the bad marks off.  Once the loan has been "paid off" then that particular account number is closed and whatever was on your credit report is there.  Sorry it couldn't have been better news.

[ScarletFever]

I think it's hysterical and symbolizes one of many problems with the credit industry. BTW, weenlips misses the point,  has it all wrong, and did not address your insights of a faulty system. I also was late to Direct Loans because I e-mailed them wanting to extend forbearance. They never replied, and I didn't follow up in time. They took no responsibility, another problem with credit that the "you signed the agreement" crowd doesn't get...the behavior of creditors.

[MMart078]

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@ScarletFever wrote:

I think it's hysterical and symbolizes one of many problems with the credit industry. BTW, weenlips misses the point,  has it all wrong, and did not address your insights of a faulty system. I also was late to Direct Loans because I e-mailed them wanting to extend forbearance. They never replied, and I didn't follow up in time. They took no responsibility, another problem with credit that the "you signed the agreement" crowd doesn't get...the behavior of creditors.

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+1

[laz98]

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@ScarletFever wrote:

I also was late to Direct Loans because I e-mailed them wanting to extend forbearance. They never replied, and I didn't follow up in time. They took no responsibility, another problem with credit that the "you signed the agreement" crowd doesn't get...the behavior of creditors.

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so how is this the creditor's fault?  just like any other bill, just because you don't get a bill, or the creditor is too busy counting their fat stacks of cash to answer your emails, doesn't mean you don't have to pay the bill.  if you got no response, then you should have kept paying until you DID get a response.  i don't see how it's their fault that you admittedly did not follow up as you should have.

[Tazman81]

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@laz98 wrote:

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@ScarletFever wrote:

I also was late to Direct Loans because I e-mailed them wanting to extend forbearance. They never replied, and I didn't follow up in time. They took no responsibility, another problem with credit that the "you signed the agreement" crowd doesn't get...the behavior of creditors.

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so how is this the creditor's fault?  just like any other bill, just because you don't get a bill, or the creditor is too busy counting their fat stacks of cash to answer your emails, doesn't mean you don't have to pay the bill.  if you got no response, then you should have kept paying until you DID get a response.  i don't see how it's their fault that you admittedly did not follow up as you should have.

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+1   ----  I agree with you Iaz...  this is in no way the lenders fault.  The borrower is responsible for making the payments based on the original agreement until it is mutually determined otherwise.  I am sure if the lender had been told, "oh each month you better make sure you remind me to make the payment or you won't get your money", then that borrower would not have received any funds!