Direct Loan ServicingConsumerAffairs Unaccredited Brand
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.
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.
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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.
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.
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