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How do I handle this SL and associated CA?

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Anonymous
Not applicable

How do I handle this SL and associated CA?

My tax refund was seized last year for a Sallie Mae Student loan. But they sod it to a collection agency called USA Student Funds. So they are still on my report and still charging me money for that same loan. This does not seem right. They said that the refund only paid the principle and fees to the loan. What should I do the loan was closed in 2009, but they took my refund in 2010. Does anyone know about this type of thing . I am paying for the same loan twice.

 

Message 1 of 6
5 REPLIES 5
llecs
Moderator Emeritus

Re: How do I handle this SL and associated CA?

OP, I split your post to form a new one here in order to keep the other on topic. I had to edit the title, and removed your unrelated question about GC, but changed nothing else. If you'd like to change the title, click "Options" and then "Edit Message".

 

Bumping for others.

Message 2 of 6
llecs
Moderator Emeritus

Re: How do I handle this SL and associated CA?

Well, the bump didn't do much. I'm not a SL expert, but I'll take a stab at it.

 

This is a federally-backed SL, right? Who is reporting, SL? The CA? Both?

 

You said it was closed in 2009...did you pay in full in 2009 leaving a $0 balance?

Message 3 of 6
Anonymous
Not applicable

Re: How do I handle this SL and associated CA?

Yes, in fact the original Creditor which is Sally MAE will not even discuss the loan anymore they keep referring me to USA student funds collections. I don't have a receipt or anything from them stating what my refund paid for. I can not get any questions out of Sallie Mae. So I had set up payment plans with USA Student funds, until they sent me paper work that was mandatory to fill out asking me question that they should already know. Like; SS#, D.O.B., current address, work place and number, annual salary, I read this so called agreement papers and after I read the part about them selling it to another collection agency and at another 8% refinance charges on this I just didn't think that was right. I only went to University of Phoenix(which was a bogus online classes) for amount 9 months. They sent Sallie Mae 1,713 dollar back. Which mean I really didn't owe her much at all. I was disqualified because of my GPA it was below requirements. I could never get the online thing right, it was my first time trying to take class in an online environment. To make a long store short. I call the FTC. And they told me to stop paying USA Student Funds and file a complaint so I did. I am  just worried that  this could come back and bite me.

Message 4 of 6
llecs
Moderator Emeritus

Re: How do I handle this SL and associated CA?

I would do a couple of things:

 

1) I'd keep calling SM and bug them for payment info, records, etc.

2) I'd call the taxing authority (e.g. IRS, state, etc.) and ask them to provide you with the amount withheld and to whom and when it was forwarded. I had $$$ taken out last year for a car tax that I swore I paid. Sure enough, the state finally refunded that money 9 months later after everyone realized that I had paid it...they paid with interest too. The government never makes a mistake, right?

3) I'd mail a letter to the CA called a DV letter. Ask within that letter an accounting of how they came up with the balance and ask them about any applied payments.

 

Knowledge is important, IMO, and I'd wait for everyone's response.

Message 5 of 6
IOBA
Senior Contributor

Re: How do I handle this SL and associated CA?

In addition to the advice already given, pull up the master promissary note.   It should spell out the terms for missing payments to include what interest will be charged, what the late fees will be, and all legal/collection costs you will be responsible for.

 

It may not seem fair to you have your tax return intercepted to pay towards this debt.  Chances are, you owe way  more than you think you do becuase of the interest and the late fees, plus legal fees/collection fees.

 

You do have a right to have the amount the CA is asking for detailed to you.   When they provide this, it also reflect the tax refund as a payment.

 

If SM is saying talk to the CA only, that indicates that they have sold the loan.   The CA will be able to provide the balance details, even if they have to go back to SM, they can get it.

 

Let us know what you find out.

Message 6 of 6
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