Crazy gov't loan problem

Wag

Diamond Member
Jul 21, 2000
8,288
8
81
I've been dealing with this issue for over a year and it just gets stranger all the time.

To make it short- I had a Perkins Loan and I qualified for temporary economic hardship, I sent in the forms yet the loan officer in the school decided to deny it (even though I qualified under the govt's rules, and still do).

The loan officer (This is a State college) is apparently really disorganized and claims he never got the forms. He told me to resubmit, I did and then he claims I didin't qualify because I sent them too late. He sent them to collections and they were bugging me untill I sent them proof I qualified for differment and they stopped (they had to, I cited the rule). This guy is a real SOB and has lied to any number of people I've tried to get involved about just what is going on. Unfortunately he is the only guy at the school handling Perkins Loans.

I sent a check earlier this year to pay the whole amount to the school (minus the collection fees). I wrote "PAID IN FULL" on the check. They deposited it.

Today I get a form from the Dept of Ed, saying that the college has turned the balanace of my loan (coincidentally the same amount as the "collection" fees) over to them, and I have to pay it before it goes into collections. WTF? Why do I have to pay the collection fee as my balance if they're first sending it to the Dept of Ed now? Why did it go to collections right from the school? Why didn't they send it to the Dept of Ed to begin with? This makes no sense at all.

Any ideas?


 

alkemyst

No Lifer
Feb 13, 2001
83,769
19
81
You are dealing with the 'power-trip' the college's counselor pulled with you.

I had a similar problem and reported it, in my case some nice looking chick was behind me in line and he took her in his office before me (arm around her back even). The line went crazy and I got a letter saying it was rectified.

With the student loan and anything that ends up being 'need-based' you get the wanna be rich guy / thinks he is rich guy pulling the strings on you :(....

but then again there was a reason God created dark alleys...