Direct Loan Servicing

I've been working with Direct Loans for about a year now. I had applied for the IBR repayment program due to my low income, but they approved me for the ICR program instead about 5 months ago. Just last month, I received a letter saying they can't approve my payment plan since they do not include Direct Plus loans which I do not have! I have regular Federal Stafford loans both subsidized and unsubsidized, which they consolidated for me. Now they are asking me to pay almost 400 dollars a month, which I cannot afford. I've tried to reach them by phone, but no one even picks up the phone. I went online and contacted them via email and asked for a forbearance until they can clear this up. They sent me the forbearance forms via email, which I filled out and sent back along with all of my 2012 income tax returns and food stamp confirmation.

It's been a few weeks now and my payment was due two days ago. They have not processed my forbearance and my account is going into delinquency status. What is going on with this agency? I would be happy to join any lawsuit if a lawyer would help us out. I feel that this agency is not on the up and up and putting a lot of Americans in more dire straights than they already are in. You can contact me regarding this matter.

In November, I just got off an arranged forbearance with Direct Loans to continue paying my student loans through their automatic pay system. I was informed by Direct Loans that my monthly payment would be reduced for the next two months because I made interest payments during my forbearance time. My payment for last month showed the reduction in the payment amount, but my most recent online statement shows my account is delinquent from the amount Direct Loans credited me last month.

In addition, the auto pay system withdrew the original full amount of my loan without giving me credit. I chatted with a representative from Direct Loans informing me they don't have current data on my current payment to provide me information. I said, regardless my account should still reflect that it shows delinquent from the amount I was credited last month.

The representative informed me that nothing can be done until the system updates with my current payment. I asked to talk to his supervisor who provided the same information and had little interest in hearing out my concerns. These concerns are: 1. I should not be delinquent since I was on their automatic pay system within their parameters, 2.

No one could tell what happened to the amount I had paid into during my forbearance, 3. I am concerned that since their payment system has changed within the last 90 days that their accounting is off, 4. The rudeness of the Direct Loans supervisor who was unwilling to help me out and clarify my concerns. She just kept on repeating like a robot that I must call back tomorrow when their system updates with my current payment, and 5. Why doesn't their system read what they are pulling from my account from auto pay?

I requested a payment history from when I started my payment, until the most recent. I received the history log after 10 days in complete, showing payments made prior to September 2011. I then asked them to fax it, and was told that it will take 7 additional days to fax the document. I did not receive any fax, up to today. I called the servicing center again, and was told that they will fax it again. I told them that I have been waiting for several days now, and I was given a deadline (from my employer) to submit the payment history.

Again, they said they will fax it. I spoke to the supervisor, Shasta, who was of no help. I am still waiting for the documents, as of this date. This is a federal government, and a useless one. I am a federal employee, and I must say I am ashamed to have a difference such as this, that has poor customer care.

The new servicing agency just released the 2011 1098 and mine said I had paid $0 in interest in 2011, which is obviously incorrect. They only have payment history listed for post switch over (October 2010) but I can see the interest I paid even there. I cannot get a response via email and when calling, the line says they cannot be completed after their long consolidation announcement even though I am calling during posted open hours.

I hope one day that a class action lawyer realizes that there's potentially big money in this. I made a very large payment in the "Payoff amount" near the time of the big website transition, and now, the money is gone. No one is accountable and it appears like neither I nor anyone else here with complaints has any recourse. Help!

Let's see where to start. Since this company took over in August, they have been completely inept. Currently, I have had paperwork pending processing since September 20, 2011. This is my paperwork for my new, lower, income, so that my IBR would match up. They still haven't processed it. I have called repeatedly and they are on a delay. I am still paying the higher amount, despite the lower salary since I don't want to defer or forbear. I just want to pay what I am supposed to!

The customer representative I talked to today was flabbergasted and can't give me any answers. We both agreed this was ridiculous and that they need to do something. At this point, I have paid over $500 extra than I should have and my January payment will still be high, I just confirmed. This customer service is ridiculous. The representative I talked to was lovely but she doesn't have big answers for me like when is this getting resolved, is there going to be a credit to my account, or anything.

Disabled in 2004, 3 independent doctors verified that I had a stroke and can't work. I tried to get a forgiveness and they refused to follow their own rules. I saw that they recently changed the rules, again, so that if you are on disability or SS, you cannot qualify for a loan forgiveness. This defies common sense. I went into default. They refused to forgive the loan $44K, they refused my request for a payment plan unless my husband signs although I was not married at the time I borrowed. This issue has ruined my marriage. The only way I could get them to back off was to separate from him and file married living separately. My husband is sick of having his credit affected and anyways hates me because I can't work. So I'm out of here. I wish I was dead, they have taken everything from me including my self-respect.

Terrible customer support! I called to specifically get clarity on the different kind of repayment plans because I wanted to lower my monthly rate. When the girl picked up, she asked my issue then checked my info. I explained in detail but she clearly wasn't listening because she then asked me about my issue, again. Apparently, she didn't even remember that I wanted it lowered. I explained that I lost my job and needed info on changing my repayment plan because they are all so confusing. She then launched into her recommendation about deferring payment. I told her that I only wanted to get info on the different payment options but she completed disregarded my question and continued to say why I should defer.

I asked again for her to explain the different options but had to press her for salient info - difference in payment period, interest rate, etc. She did not tell me any of the details upfront - I had to specifically ask those questions to get that data. She then went back to pushing deferment, though I made it clear that I was not ready to sign up for that. Finally, I had break in on her and say that she wasn't answering my questions, so I thanked her for the info but said I was going to call back to talk to someone else who would answer my questions. With that, she abruptly hung up on me.

I have a 25 years old student loan that is in default. My wages and tax refunds have been garnished. In all this time, I have paid back 4 times the amount of the original loan and I still owe almost double the amount of the original loan. This doesn't seem right. I also want to add that what we were taught was outdated. I was taught graphic arts with out computer tech. When I went out to work in the field, I was only able to get low paying jobs; much less than what they said I would make.

I have been overpaying my parent/student loan for three years since my daughter graduated. Original loan amount was $14596. My loan payment is $111.66 per month. I pay $60 biweekly or $130 per month in order to pay down the principal.

This company is applying all money paid to interest only and is not reducing the principal with the extra money I am paying each month. When questioned about it, they told me that all payments go to interest for the next five years and will never go to principal. I overpay this each month.

How can this company take these payments with the extra amount over and above the minimum monthly payment without applying anything to the principal? I have had many loans in my life and I don't understand how they get away with this.

I am currently in the process of trying to find someone to talk to at Direct Loans, but "no managers are available." Like others, I received a letter on Monday telling me that my application was approved. When I looked at my original application this morning, the interest rate went from 4.875 to 5.125 and the payment about 6 bucks higher. The interest rate turned me off so I called to tell them I wasn't interested. Well, the letter was dated 10/8/10 so the last day I could have called was Monday, the day I received the letter.

I plan on putting a call into my lawyer to see if there is anything they could do, but I doubt it. A class action lawsuit is probably what needs to happen in order to get their attention. I am really thinking of taking this on because the government should not be taking advantage of taxpayers this way and I have some time on my hands.

With that said, I have been doing some research on starting this suit and the main thing is numbers. You gotta have a lot of people complaining. If you would like to get involved and show your support. Please send me a quick email at **************@gmail.com.

I used Direct Loans for college, but did not finish school after I got married. My husband and I moved to his home country Sweden and had a daughter in 2007. After moving, I changed my contact information with DL and applied for a deferment. It went through and I was told I was all set. I never heard from them again. I was under the impression that I was set until I moved back.

Well, we are planning on moving back in August and I applied to go back to finish my teaching degree. I was accepted and wanted to get a head start and filled out my FAFSA. It was then that I learned that not only was I not in deferment, my loans were sent to default. I was never warned. I was never called. No emails. Nothing. Now the loans are in collections and they have put a 32% fee on them. On the Department of Educations website, it clearly says that 1) They cannot send you into default if they do not make extreme efforts to contact you. and 2) the maximum fees allowed by collections are 25%. I have contacted the default resolutions department at the DOE and they say there is nothing they can do. Direct Loans says they sent mail out two times and it was returned.

They had my correct address and we receive mail from the US almost weekly. There is no reason for their mail to have been returned. Because no one seems to know anything, I am seeking legal consult to know my rights. I am aware that it is difficult to go up against a governmental agency, but I am willing to try. For me, the damages are great. Not only over 12,000 dollars in fees alone. But, the fact that I cannot finish my degree because I do not have over 1,000 dollars per month to pay tuition. This has also ruined my credit. So, our plans to purchase vehicles and a home when we move back have also been compromised.

I have been dealing with Direct Loans since about October without results and increasing frustration. I am a member of the Missouri National Guard and I have been trying to take care of my college loans. I sent them the Loan Repayment Forms that I needed for them to fill out, specifically, the portion that required their sign off and stamp so that I could file my paperwork with the Education Department of the National Guard and get my loans repaid.

Well, due to an administration error, my unit accidentally sent only 1 of the 4 forms that I needed so I only got one back. After I realized this error, I contacted my unit and had them send the other three and expected that to be the end of the problem. That was just the start, since then, I've got several different answers from different receptionists claiming to know what they are doing. All I needed were those forms faxed which they said would take only 48 hours to process, they said that they had my other three forms and that they would send them but what I got was the first form again.

So I called them again and carefully explained what I needed done and they said that they would make a note of and it would be sent. Well, after a week went by, I still heard nothing. When I contacted my unit, they still haven't received anything. Well, I wondered if my unit was mistaken and that they had misplaced the paperwork I needed, but that was not the case, they had kept a specific folder and documentation of information sent and received and I confirmed that it was sent but nothing was received.

I called again and again getting the same answer from receptionists displacing blame from themselves and on their higher ups about how when they receive information they put it on the system and how their log from my previous conversations said that it was sent. I have been extremely patient with this and have tried not to assume anything but enough is enough. I have re-faxed these forms at least 2 more times since then, and still they are saying they don't have them and that I have made a mistake. I have confirmed their fax number and there is no doubt that they have received them but still nothing is being done.

All I need are those forms signed, it requires no real effort but apparently it is not a priority of this company to handle matters such as these. It is now February, 2010 and my loans are scheduled to enter the repayment period on February 7, 2010. This problem needs to be taken cared of, not just for me but for other students in the military that are counting on their lenders to be at least cooperative with the military units. I will be dealing with paying my student loans myself, which will be an issue since I counted on the military taking care of it, but I did not expect Direct Loans to be so neglectful.

Ive been paying my student loans every month with money orders that I got from my bank. Direct loans says that they have not been recieving my payments so they must be getting lost in the mail. They refuse to try to locate them using my account number (which just happens to be my social security number)They say that they cant locate my payments unless I give them all the information from the money orders. I no longer have the information they want me to supply them. i believe that they are missing at least 8 months of my payments that I know I have sent in. They refuse to let me talk to anyone that would be higher up above that of just a calling center employee. They refuse to help me resolve this issue at all, they just continue to tell me that the payments must have been lost in the mail and that its all my responsiblity.

I tried to look at my payment history online. It said I had nine pages of payment history but I could only view one page. I called and asked for a complete history of my payment history and they sent me a half a page of my payment history. I believe that this payment history they sent me is incorrect. I believe that the amount they say I owe them is incorrect. I believe that they are misplacing my payments somewhere and I would like them to do a search for them on their end of things. I feel that its not right for them to be so unorganized and lose peoples money and not have to answer for it.

Please help me I enrolled with Katharine Gibbs in 2002..I took out school loans and never graduated from that school because it was not worth it and poorly conducted. Instead of a college that it posed as the school and loand were nothing more than a money making scam. I've found out the school has numerous complaints against them and they now changed their name to Stanford Brown Institue. I am now left with a loan that went from HESC to Direct loan it's in deferment with a balance of $12,617.00 and w/ a 7.25 interest rate & another loan from Wachovia Education for $14,526.34 (I am desperately trying to fix my credit report up) I feel like these loans will haunt and remain w/ me for the rest of my life. Can someone please help me?

This letter is to serve as an official complaint against Direct Loans for withholding information and neglecting to inform me of proper policy, thus resulting in increasing interest charges. On September 2, 2009, I called Direct Loans and talked to a Customer Service Rep by the name of Cassandra. I explained to her that even though my consolidation had been approved by Direct Loans, I received a past due notice from one of the lenders listed in my Direct Consolidation Loan Summary Sheet. She told me that this particular lender had already been paid and did not list the additional loans on the verification that was received from them. I told her that ACS (lender in question), was now servicing all the Wachovia loans and that the 3, now past due, loans were ACS loans.

Together, went over each loan and the amounts and concluded that the 3 ACS loans were not on the app or verification received from ACS, formerly Wachovia. She also stated that if I had other loans out there she could see them through another method. Even though this entire process seemed a bit overwhelming and confusing, Cassandra understood that I wanted to add these loans to my consolidation so that I could make one payment in October. Nevertheless, she told me she would have to send a new verification out and gather the current balances on the 3 loans and this could take another 30 days. Therefore, I called ACS back the same day to get a temporary forbearance so that I would not have to pay the current and past due balances.

On October 1, 2009, I called Direct Loans because I had received another letter from ACS this time stating my payment would be due on 10-14. The past due charges were not there, but the interest had accrued of course. I talked to Tasheda, a different Customer Service Rep, and she told me that I need to complete a form to add loans to the consolidation. I proceeded to explain to her that Cassandra had already told me on the 2nd of September that she would add the new loans after they were verified. And that it has been 30 days and I had not heard anything different from what I was originally told by the first Direct Loan Rep. She stated that Cassandra's request was denied because the policy is "you must have the request in writing from the borrower."

Unless policy had changed within the last 30 days, no one at Direct Loans had informed me of this policy nor contacted me via any communication method to let me know that my request was being ignored. With this information, I requested to speak with a manager, Jarvis, who informed me what "policy" is again. I explained to him that policy was not followed from the initial phone call and that I had completed everything that was asked of me so why should I wait another 30 days to complete a form.

Had Cassandra told me that I needed to complete the form to move forward on September 2, 2009, I would have done so. Jarvis told me that they typically tell borrowers to check up on the status of request but did not know if this had been done. I told him that Cassandra assured me that it would be taken care of, but I needed to allow the allotted time frame for processing, thus eliminating any excuse on their part. I have never received or read anywhere that states I must call and check to make sure that Direct Loans is doing their jobs.

At any rate, my loans are due in 2 weeks from ACS and nothing has been submitted to them as of October 1, 2009. As of today, I had to take a couple of hours out of my day to sit on hold and rehash this information over again along with complete this Request to Add Loans form. I intend to contact the appropriate Federal departments, including your corporate office, to let them know how borrowers are being treated and the lack of respect given in these instances.

This extends far beyond poor services; it breaches fair practices and policies. Although, Jarvis reluctantly apologized, he never offered any suggestions to try and expedite this process after Direct Loans clearly made a huge mistake and cost me time and more interest.

After this call today, I checked with ACS to see if Direct Loans did in fact know about these 3 loans from the beginning and I was told that in July, 2009 they verified these same 3 loans with Direct Loans. The representative, Corletta, said she will send me a copy of the verification which is proof that Direct Loans did in know about these loans because they inquired about them 3 months ago.

Have not heard anything from Direct Loans and ACS loans are still outstanding. I was told that the 30 forebearance will expire in 10 more days. Direct Loans claim that they have not received anything from me regarding additional request or official complaint. I have retained a copy of the certified letter and fax confirmation where I sent it.

My partner and I had consolidated our Student Loans with Direct Loans in order to be eligible for the Public Service Loan Forgiveness Program. After talking to multiple individuals (of which none seemed to have correct information and often conflicting) as to the correct loan repayment plan to be eligible for this, we were told to sign up for and enrolled the standard loan repayment program. After paying monthly for nearly a year, we came to find out that given the repayment program we have been in, we are not eligible for the Public Service Loan Repayment which is the reason we consolidated with them in the first place. We have now paid approximately $10,000 a piece and chose jobs for our eligibility and this is now money and time down the drain.

Direct Loans has refused to take responsibility for their own error, refused to give me the number to the ombudsman. The manager stated to me, "The reason this happened is because this is a new program and his employees may not have had correct information on 6/12/09. We feel somewhat helpless in resolving this issue. Payments are still due while this is not being resolved and time worked in the public service job continues without the time being applied. We both had accumulated significant debt throughout our education and their error is creating debt unmanageability in these financially difficult times. I would like to know if there is a legal route to address what seems to me to be unethical and illegal actions on the part of the loan company. Thank you.

In September of 2008, I made a student loan interest payment to Direct Loans. Since the check cleared my bank, I thought all was fine. When I got my interest payment statement for my taxes, this payment was not shown. Direct Loans claims that I didn't make the payment. I have provided them with a copy of my cancelled check.

Now they say that they can't tell me when they can credit my account because they found that because someone on their end entered my Social Security number incorrectly, my payment went to a collections account. Each time I call to find out when my account will be credited, I am told that they are still investigating. It's been four months of investigating. I provided them proof (copy of the cancelled check obtained), but they say that they have to get the collection department to give them the funds and they don't know when that will happen. At one point, they told me it would take 90 days, which have already passed.

In March, 2008, Citibank sent a check to Direct Loan in the amount of $3800. This check was to be paid against my account #128388203. This Citibank account was my father's and the check referenced my Dad's name as well as my account number on the face of the check. Unfortunately, Citibank mailed the check to Greenville, TX, not Atlanta, GA where payments should be mailed. As a result of this, even though my account number was on the check, this Citibank check was treated as an "untraceable" check. Needless to say, though, Direct Loan cashed the check and deposited it into an "escrow" account, instead of returning it to the sender.

After several phone calls, I found out what had happened to the check and had Citibank send a copy of the original check that they issued to Direct Loan. In September, I was told that Direct Loan was going to send a check back to Citibank. I have also received a letter from Direct Loan stating that they were sending a check to Citibank. Citibank cannot locate the check and Direct Loan has not given me any information that would distinguish this check so that Citibank could identify it for me.

I have requested on several occasions for a copy of the check that Direct Loan had sent to Citibank, but I am told that this is not possible. Suppose ably since the Citibank check was an "untraceable" check, Direct Loan would not be able to produce a copy of their check sent back to Citibank for me because the check was drawn off of the Treasury Dept from an unknown account. I have presented the letter Direct Loan gave me to Citibank, but without a copy of the check, I cannot reverse this account balance. I am persuing trying to get a copy of the Direct Loan check issued to CitiBank but I am not getting any cooperation from Direct Loan.

At this time I have continued to pay my Direct Loan so as to not have this affect my credit report. My father has an "investigation" in place with CitiCard so that interest is not incurred on this account until we can resolve this. At this time I still have a balance of $2600 on my school loan and my father has a balance of $3800 due on his credit card. I don't know what to do because Direct Loan will not give me a copy of the check they sent and I have no "proof" to give CitiCard.