Direct Loan Servicing
ConsumerAffairs Unaccredited Brand
This company is a complete scam! I paid three consecutive payments to them beginning in November 2016 and then I was told that I wouldn't have to make any more payments to them and that they would only need to verify my income each year. HOWEVER, I saw today that my credit report has taken a hit as I am now over 100 days late on my federal loan payments that this so called company was supposed to be handling! I know how to dispute this claim! Then when I call, they don't know what is going on or say they will get back to me. Then I was told I was being transferred to the processing department and they hung up on me! DO NOT USE THIS COMPANY!!!
January was my first month starting direct debit and I am completely frustrated. Since I signed up in December they told me that I may have to still set-up a manual debit for my January payment. My payment was due on January 15th, but when I checked my account on January 17th I saw that I was past due on my payment. So of course I created a manual debit on January 17th. Today I looked at my bank statement and it looks like they debited me 2 payments of $346 on January 18th. Of course, they say it's nothing they can do about it and that I need to dispute them with my bank. That is almost $700, what if people are not rolling in dough! They claim that since January 15th was a Sunday it took 3 days for them to debit me. But magically the debit processed on the 17th. Only took 1 day. They are scammers. Beware of the direct debit!
I am so frustrated with the incompetence of my grad school loans provider, Fed Loans. Everything was fine until I needed to update my direct debit account. I updated my information twice with a representative on the phone - and now this is the third time they've charged my expired account! I don't know what to do anymore except to give up and lose my .25% interest rate reduction. It took 3 business days for a representative to respond to my email telling me what I already know - that, yes, they tried to charge my expired account again.... I feel like hitting my head against a wall; my email clearly outlined the situation. What really angers me is that this email tells me that they are alerting credit agencies to the now, late payment - which the last representative assured me that they didn't do.
The second time they did this, they sent only my parents (co-signers) a letter in the mail about the expired account and late payment - and then didn't include any details about what account! I have several brothers and sisters with loans they are paying and/or consigning so you can imagine the confusion. Management needs to get their act together over there and address customer service and their overall operations. It's a disgrace.
I will be consolidating away from this company as quickly as possible. Their communication is spotty at best, their loan terms are anything but amicable, and their customer service department espouses a "We will talk to you if we really want to; otherwise, screw you" perspective.
I received 16,000 in TEACH Grants while I was in school. You have to teach for 4 years at a Title I school and you have to certify each year that you teach. The first year I sent in the paperwork and was fine. The second year they did a big renovation at the TEACH Grant department and they moved everything online and I never got notification about certification. Last year I got notification that I needed to certify, however, they said they had never received a single certification for me. I took my paperwork to the school I had taught at, but it was right before Christmas break so the school district mailed me back the paperwork. I then forwarded on to FedLoan. I received a letter saying that my grants were converted to loans. I contacted FedLoan and was told I could send in my paperwork during my grace period. I sent it in and when I called about the paperwork they said there was nothing they could do because they were converted to loans!!!
I just don't understand. If I am currently teaching and fulfilling my requirements how can they feel good about converting the grant into a loan with accumulated interest!!! It is a SCAM. You should be able to clear up miscommunications in paperwork if the person is teaching! The lady I spoke to was super sweet, but their policy is a scam.
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This company is very inconsistent and the communication is flawed. Please do not EVER use them to service your student loans. They will make unauthorized changes to your account and encourage you to do multiple forbearances. This is so they can collect extra interest on your student loans. They will not consolidate your loans. They will charge interest on each of them and let it pile up. Consider this complaint a warning to you. Don't do it!
I met and still meet all the requirements of this program. I still teach in a high need school and I have taught in a high need school and low income school for 10 years. I received $2000 from this program. Because I checked the wrong box in the paperwork you have to sit in back each year verifying your employment. They converted my grant to a loan. I did not know and did not send back a corrected form in time. I wrote a letter of appeal once it was converted and they denied it. Since then, they have sent it to several collection agencies and I just found out that I will not get my 2014 federal refund because they are taking it to pay the grant. What's horrible is that I am still a teacher meeting all the requirements but I didn't send a form in on time. This should be against the law what they are doing.
Took a job commuting 2 hours each way to teach at a Title 1 school serving the emotionally disturbed, ONLY to fulfill my TEACH Grant. Well after the 3 years of dealing with a stressful environment, commuting way further than I needed, and compromising other job offers, I was scammed out of my Teach Grant. They claimed they never received my intent, and that they tried to contact me via postal mail. I didn't receive one letter, and my intent form was sent way prior to the deadline. I was unaware there was any issue with my TEACH Grant and on 2/4/15 they converted my grant into a $10,000 loan with interest.
I called to straighten the situation out, they claimed they never received my intent and that they had 0 phone calls on file from me the entire year. They asked if I had the fax receipt, which I didn't, end of conversation. A total SCAM, wasted 3 years of my life fulfilling my agreement only to be cheated and lied to. Not sure who I can even contact or turn to because every time I ask MyFedLoan for a supervisor they just pass me along to the next available agent who I assume isn't a supervisor. They also just insist I wait to file for Teacher Loan Forgiveness and to move on from my TEACH grant like it’s no big deal. Very upset over this. Teachers aren't rich. I am in the process of being married, buying a home, and raising a child, and to add $10,000 onto my loans isn't right.
In 2013 I decided to look my chances of getting into college. When I had my appointment at the university, told me about student loans and accepted. I joined classes in the second quarter and had to retire because the school was too expensive and needed more work. Now I have to pay $5,000.00, $1,200.00 USD in loans at school and the rest to Federal Loan. I pay very high interest in something that practically did not use. Very bad school. On Monday, December 8 did my monthly payment. On the 9th I called to cancel and paid with another bank account because in that current account had no money.
Today I see overdraft charges on my bank account $116.61, the person who charged me canceled the wrong payment and when I called the bank they can't drop the overdraft charges. I called Federal Loan Office and they would not cancel the payment and collect the money from other account, just said "sorry the person who attended you canceled the wrong payment." Then they didn't care that I have these overdraft charges even if it was their mistake. It is very hard for me to pay off these debts and now I have to deal with this. To everyone, I recommend staying away from this institution is the worst.
DLS went defunct. My TEACH Grants were serviced by them for two years. I had no problem certifying my ATS. Grants were transferred to Fed Loan, where a lack of communication, misrepresentations of dates and statements were used as evidence against my willingness to recertify. I am still employed with a Title 1 school and have no reason not to continue to recertify. A lack of communication, according to their guidelines posted on their website was the major cause for a breakdown of communication.
This is the biggest scam I have ever seen... they even go out of their way to "prove" that they are not a scam. DO NOT FALL FOR THIS!!! What a joke!
This company are nothing but scammers. I have never had dealings with this company ever, yet they took an unauthorized payment of 69.75 from my bank account which is disgusting & little more than fraud.
I read the many complaints stated against the services that Direct Loans is supposed to provide for the average student loan consumer and I am alarmed on the many complaints that I read. I am not sure if I should go ahead and apply to consolidate my student loans with them, please advise and thank you.
I'm having issues with my KwikPay with Direct Loans. I set up an additional amount to be debited each month via KwikPay and received an email from DL confirming that this was accepted and effective as of 5/24/13. However, the additional amount to be debited did not show up on the homepage or KwikPay page of the website. I called DL about this issue FIVE times in the past month - the first 4 calls, I was assured that the additional amount would be debited on my June payment date, 6/21/13. Lo and behold, it wasn't.
I called AGAIN today, 6/26/13, as the last customer service rep had told me to do in the event that the additional amount wasn't debited with my June payment. All I was told was, "The additional amount should be debited in July." I reiterated that the additional amount I had set up wasn't showing up on the website (it should, at the very least, show up on the KwikPay page), but they assured me, just like they had the previous FOUR times regarding the June payment, that it would be debited in July. I'm 99% positive that this will continue to be an issue, and that the additional amount will not be debited on my next payment date, 7/21/13.
I'm at a loss as to what to do at this point, as I don't want to make an additional manual payment every month (as it pushes my payment date back each month that I do this, because the "don't advance payment" box isn't able to be checked for some reason - which means I need to call DL and have the payment date reset every time I make a manual payment). This kind of service is unacceptable. This issue has been going on for over a month now, and no one has taken any concrete steps to resolve it, other than to say "just call back."
My experience has been reflected completely in this review by another consumer: A few months ago, I received a letter telling me that KSA had taken over my student loan from the government. Since then, I have tried to reach these people via the internet and via telephone with no luck. I tried to call them and was told that I was the 2nd person in line. But even after that I had to hold on the phone for a good 15 minutes before I got to talk to someone and then I was told that due to "technical" difficulties, he could not help me out and that I would have to call back. Thank you, KSA Servicing!
A few months ago, I received a letter telling me that KSA had taken over my student loan from the government. Since then, I have tried to reach these people via the internet and via telephone with no luck. Now although I know my username and password, I can't log in because I am being asked to submit the name of my first manager. Huh? That is not a security question I would have chosen ever! Now I have been on the phone, on hold for 23 minutes, listening to hold music and an automated voice telling me every few minutes that an agent will be with me as quickly as possible. What a joke this is. I think I'll just stop paying and maybe someone will eventually call me.
If your student loans are serviced by Direct Loan Servicing Center in Atlanta, GA, you are out of luck. I have no idea why they call themselves servicing center if they provide no service whatsoever. They are hiding behind long wait times to get to talk to somebody and automated email messages. People you talk to are rude on the phone and inconsiderate.
For three months, we have been waiting for a returned check to be credited to my student loan account and to no avail. Even with a copy of the cashed check, they don't know what happened to it. It was mailed directly to their Payment Center P.O. Box 530260 via registered mail, and they still don't know anything about the payment. The check was endorsed to the Department of Education and cashed on December 28, 2012. But no, these people from the servicing center still don't have information about it. Their answer to everything is 7 to 10 business days. If you ever have to deal with these people and you have a choice, don't. Aside from being incompetent, they move like snails. Oh no I apologize; I didn't want to offend the snails.
If you are looking into a TEACH Grant, beware. It sounds like an awesome program, but I am finding out the hard way that it is a trap. I have been teaching in a low-income school as a special education teacher purposely because there is a $17,500 loan forgiveness program that will forgive that amount after working 5 years. I call Direct Loans every August to make sure that loan is still in forbearance. In addition to this, I read about the TEACH Grant. It offered $8,000 to teachers earning a Master's Degree going into certain subject areas (Reading Specialist) and in exchange, you teach in a low income school for 4 years. I thought, "Perfect! I get to help more students in a high need area, in a high needs school."
I read and was told when I called Direct Loans concerning the program that they would contact me and send me a form that I would have to fill out every year at the end of each teaching year. I was expecting the form in June, but I never received anything. I decided to call them and they said they sent me an email (I never received an email) and the form was in that email. Because I never received that form, I couldn't send it in, right? Well, they converted my $8,000 grant into a loan. It is accruing interest as we speak, and they won't do anything to fix this. I have even offered to send them proof from my low income school that I have been teaching at. Also, they told me the form was sent in December. December is not the end of the school year! Keep this in mind; I am still teaching in low income schools and in my 2nd year of the 4-year agreement.
Still, they won't do anything to help me, so guess what? I have to pay this money back! I have begged and pleaded with them, and they told me there is nothing they can do. I asked the customer rep on the phone if this has happened a lot and she said "yes." Can you believe this? I have asked to speak with supervisors and managers, and they can't help me either. I can barely make ends meet with my pay, let alone insurance cuts, and now they are telling me I have to pay back $8,000 plus interest to them. Oh, and the customer rep on the phone said, "Well, ma'am, at least you are getting $17,500 forgiven!" I told her that I was living at home during the time I went for my Master's and could have paid it out of my pocket at that time, but instead I relied on the TEACH Grant.
This is stressful and sad, and I hope people read my review and take the precautions. Get those forms and fill them out and send them in ahead of time. Document every call with Direct Loans. The TEACH Grant was too good to be true for me. What a mess. I must now find a higher paying job in order to make ends meet because my love of teaching isn't going to be enough to pay these loans.
One suggestion: In any conversation with this company, ask for the name of the person you speak to, take notes, take screenshots from their website, and keep a copy of all paperwork.
I have had problems similar to those reported by other people. Basically, the customer service representatives will tell you that they have done what was requested, or give you descriptive information about your loans that will turn out to be completely inaccurate. I will also echo that the customer service is remarkably poor. The representative's ability to coherently explain anything varies drastically, and many quickly become rude. Twice, I have been "disconnected" in the midst of conversations. Despite the fact that they begin every conversation by asking for my phone number, I have been told by a manager that their policy does not allow them to return phone calls. Given that it frequently takes 15+ minutes to get a representative, and both hang-ups have been after another 15+ minutes of trying to explain what is going on, this is more than a minor annoyance.
The numerous small mistakes this company makes in the administration of my loan makes me worried that they are messing up the basic calculations of my loan payment.
Angry, no, furious doesn't even begin to describe it! I decided to consolidate my loans through the government program. A year later, Direct Loan still has yet to close my account. Every 3 months, I get a call that my account is delinquent and I need to make a payment before something terrible happens to me! Every time, they send an "escalated email" to get this dealt with. Surprise! I got another call today. I was just yelled at and lectured too because they wouldn't listen and I had to raise my voice (a.k.a. scream) to get her to stop talking for 3 seconds. It didn't even work. She put me in timeout (hold) for 3 minutes until I could calm down, which just made me more upset. Bottom line, customer service sucks, account system sucks, don't get a government loan! By the by, interest on the government loans are higher.
I began paying my graduate student loan back in November 2012. I contacted Direct Loans in October because I believed my payment amount was inaccurate (too low). I was told it was correct. I am using the standard repayment method which has a 6.8% fixed interest and payment amount. In January 2013, my payment went up $110. When I contacted Direct Loans, I was told my payment amount was miscalculated and that my January amount was the "accurate" amount. I was actually okay with this, because this was within $10 of what I calculated the actual amount to be, and why I questioned the original payment amount to begin with.
Two days later, I received two different letters with another two payment amounts. I once again called Direct Loans and was given a third payment amount. In a three-month period, I have been given five different payment amounts on a loan that is supposed to have a fixed monthly payment amount for 10 years. I have talked with four different people at Direct Loans and, with the exception of one person, they have been rude and unhelpful. I am considering legal action because essentially I feel I have three different promissory notes, with the first being the lowest amount. I want to pay what I owe, but I have tried to do the right thing from the beginning to no avail. I am truly worried for my nephew and what he will experience in two years when he graduates from college.
My student loan was "sold" by Direct Loans to another company over four months ago; that was annoying, but not a big deal. What is a big deal is that they neglected to send over the entire amount. A measly $129 was kept at Direct Loans, so I still had a balance with them unbeknownst to me, until today, when I got an automated phone call asking me to call them (in the meantime, I have been paying the new servicer every month). Upon calling them back, I was informed that I am 128 days overdue, that it has been reported to the credit companies, and then while telling me this she said, "Oh, hold on," came back and then said that it was an error. They think I am over 4 months late with a payment and this is the first notice I got; besides the fact that I am not late with a payment, that this is their fault.
To top it off, when I asked to speak with a supervisor, I got a snotty person who told me that I will have to call back in 8-10 days to make sure that the request to have the credit companies notified was completed, and that it could take 30 days to have it reflected on the reports. And no, I cannot have a letter stating that they made an error until after everything has been corrected! So if I have a need for credit immediately, I will have nothing to show to refute the error on my credit report. So here I am, paying my bill when it's due to the company they sold my loan to. 1) I am never notified that they are considering me past due. 2) It's their error. 3) I can get no immediate verification that they made a great error. 4) And the worst part, I get a snotty person who offers no apology, no explanation, and is rude. And I get to be the one who has to make phone calls to make certain it's taken care of. And no, while I was obviously upset (who wouldn't be?) I was not rude or insulting to him.
I mailed a $5000 payment in July 2012. I found out in Nov. 2012 that the payment was never received. I have sent copies of the front and back of the check consistently and called every few days, and they continue to tell me that it is in processing.
I can say (with all honesty and no exaggeration) that I've never dealt with people who were so rude and irresponsible in an organizational environment. I've had major issues with this place, which include employees hanging up on me, lying to me about business hours, falsely telling me they were unable to access my information in the computer, and most importantly, failing to act on consolidating my loan efficiently (on two separate occasions). This place is the epitome of poor service. Apparently, the employees at DLS go about their day in a completely unregulated fashion. It is not uncommon to encounter giggling, sarcasm, and downright rudeness. I will be filing a formal complaint with the ombudsman, and I encourage everyone to do the same. Please file a complaint (it's quick and simple)! Elsewise, borrowers will be subject to this type of authoritarianism, indefinitely.
I am about to enter re-payment of my $170K student loan, so I have called many times with questions concerning plans, consolidation, forbearance, and other general questions. Every single person I have spoken to was rude, disrespectful, un-knowledgeable, inconsiderate, and in general, just plain awful. I don't understand how they have a job in customer service. They act as though I am interrupting their day when I call, but isn't it their job to answer my questions? They also don't actually answer any questions; they just deflect information, mislead or do not give all the information. The website is also not very helpful, but at least it is not rude. As if the amount of my loan isn't terrifying enough, I will have to deal with these people "helping" me with my loan for the rest of my life, something I dread as it is an extreme stress and experience. This is just not right.
I have had two automatic withdrawal amounts deducted that were the incorrect amount. This amount was twice as much as it should have been. There were no letters or invoices received, and my only way of finding out was checking my banking account thoroughly. This has been a 2-year process of determining the correct amount. They offer forbearance to resolve their problem yet interest accrues. They tell me there is nothing they can do to correct their problem but allow them time to fix the errors internally. I feel they have violated business ethics and are acting illegally, yet I cannot afford an attorney to pursue the matter.
On October 10, 2012, at 1603, I contacted Direct Loan representatives at 1-800-848-0979. The representative I spoke to was female, and her name sounded like Katie but I believe was Aadie(?). I have never had a worst experience speaking with someone over the phone in my life. This rep was rude, disrespectful, and should never be a customer service representative. As a registered nurse, I deal with people on a regular basis, and there is a boundary on how you treat people that she was crossed. I stayed calm, spoke with her in a mature manner, and after she answered my questions about my student loan payment, I asked to speak with her supervisor. She rudely stated, "I need to know why you need to talk to her for?" and I replied, "Because I am not satisfied with how I was treated by you." She then stated, "Okay, fine!” laughed, and then put me on hold for 5 minutes before the supervisor was on the line.
The next person on the line, although calm and listened to the problem, stated, "I will talk to her supervisor and let her know." I am not satisfied with how this was handled. I asked the woman if this phone call was recorded, because it needs to be reviewed on how I was spoken to. She stated it only does by chance, and not every call is recorded. I believe my phone call needs to be reviewed if possible, and Aadie(?) needs to lose her position in answering calls for customer service if this is how she treats people. Please help.
I have never had any trouble dealing with student loans until this year. It took me over 3 months to get a forbearance request processed. I applied online, only to find out there really is no online application. Rather, it is a form that you can fill in electronically then print out and send in. Useless. Not having a printer, I had to go elsewhere to print out the form and scan and print copies of my required documentation. All in all, this took several hours which is why I was infuriated to hear the little brat on the other end of the line dismiss me when I called to check on the status of my forbearance.
Since I had not heard back from them after my first call, I called Loan Servicing again and was told by the CSR that there was no record of my request, but I could get the process started now by giving him my social security number. I insisted that the form was there and wanted to know the status of it. I told him that I was not going to fill out another, as I had already invested a great deal of time in the one. He said, in a very snotty tone, "It's just a one page form!" I hung up on him. I called back and was told by a different CSR that my form had been received and approved and I would be getting confirmation of this in 7-10 days. I then asked to speak to the manager in order to report the little snot that had been rude to me earlier. Everything seemed fine after that.
This was in June. Fast forward to July. Still no confirmation, more phone calls, again told I'd receive my statement in 7-10 days. Fast forward to August. I got a bill. I called Loan Servicing and was told to ignore it, that everything was fine and that I would receive my confirmation in 2 weeks or less. Nothing, nothing, nothing. Now we are to September. Nothing, nothing, nothing. Wait! Finally, on or about September 27th, a letter confirming my forbearance comes in the mail! Little good it is to me now. I needed proof of my forbearance for one year and now I have a letter that reflects a one year forbearance starting July 9th.
This company is horrible! Inefficient and rude. Liars. This is not something to be messed with. This is serious stuff and working 80 hours a week does not afford me the time to babysit these idiots to make sure they are doing what they are supposed to do. Please do something about this company. I do not trust them, I do not want to deal with them.
I sent my application off to Direct Loans in December 2011 and they said everything would be in order by January. Come March, about half of my loans were added. Then in May, I called again to see if the other half were added and they said that I needed to send in the paperwork for those loans again. By mid-August, I still had not received word that these loans were added. So I called again, and they said that my application had been duplicated, even though they told me to send in the paperwork again. Then they told me to wait 10 days for them to finish this.
Now this morning, I called again to see what the holdup was. The person I talked to said they had not received the loan verification certificates even though my service provider sent them off on August 1st. Then after being put on hold, the agent said they did indeed receive the certificates, but that it will take another two weeks for them to complete this. When I asked them to speed up the process, they said this was impossible. Then, when I asked to speak to someone else who might be more helpful, the agent said no, and she would not transfer me to someone else. I sent another angry email to Direct Loans explaining my dissatisfaction, but I know that it will only fall on deaf ears.
In general, working with Direct Loans has been a horrible, horrible experience. They don't get work done when they say they will. They'll tell me they didn't receive paperwork, but then a couple of minutes later, they'll say they did receive paperwork. And the agents, in general, are very unhelpful when I ask them to speed things up. Very unprofessional, and if you have to work with them, I wish you luck.
I sent in my forms for income-based payment on April 23. On April 27, I called to verify that the forms were received. During this call, I was informed that my forms had been received and it would take 7-10 business days to get a decision made. I called on May 11th and the call center staff informed me that they were behind on processing the income-based information and that it would take an additional seven days. I called back on May 18th to see what was going on with my paperwork. I was then informed that my paperwork had not been received and that everything would need to be sent again. I had informed the call center staff that I had talked to a staff previously, who stated that my information had been received and was told that it was being processed. The staff stated that he did not know why that was told to me and my information was not in the computer.
I asked to talk to a supervisor, who was rude and could care less about anything I was saying. He stated that he couldn't tell me why all the people I talked to said they had my information when they didn't and he didn't know what to tell me except to fax it again. He then went on to say that it would take 48 hours for them to receive a fax and then for me to call back and talk to a supervisor to see if my information had been received. I faxed my information to them on May 23rd three times. I have all the times I sent the fax to them. I called them on May 29 and they stated that they have not received the fax. The supervisor advised me to send it again after I told her that I sent the fax three times already. She too could care less and recommended me to fax it again.
Direct Loan Servicing Company Information
- Company Name:
- Direct Loan Servicing