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My loans went into default. I am a parent who signed for two government direct student loans for my step-son and not doing my due diligence I admit ignorance of issues with DE and loan processing companies such as Nelnet which was assigned to my loans before I signed the contracts. After graduation he wasn't able to handle payments as mutually agreed and eventually went into default which by the way takes only one day of missed payment. It's stated on DE's website. I've read commentaries on this site and others and find commonality in all which is that people don't know what to do to challenge, dispute and correct errors. We all agree DE and all of its private contractors, authorized or not are corrupt to varying degrees in violation of U.S. Codes (federal laws), The Fair Credit Reporting Act, False Claims Act, Mail Fraud and Wire/Internet Fraud, et al but those are the main ones.
I am a retired law enforcement officer in special investigations and have worked on high level cases. In my situation I too experienced financial defamation by DE and Nelnet and am working diligently to correct and erase fraudulent reports furnished to Consumer Reporting Agencies (CRA's). The TransUnion, Equifax and Experian have all assured me of this; and will correct and erase false reports as required under federal law. CRA's are awaiting my investigative report. My case involves fraud in accounting by both agencies. My evidence are their documents contradicting what they furnished to CRA's. IRS assisted me with their part of proving my payments not reported on my credit reports by DE and Nelnet.
There is too much to tell you within the confines of this commentary box. I share with you what I know in the hope this helps all of you because I am victimized among you. We have a corrupt student loan system created by greed and abusive power which is why Sen Bernie Sanders wants to scrap the payments owed but he will fail because of exponential profit - the goose laying the golden eggs; we feed the goose.
There are those in government who will help you because they like you do not like government wrong-doing and do work "to serve" their communities with integrity...i.e. IRS provided me with documentary evidence against DE and Nelnet. IRS is mandated (I read their section manual) to withhold your tax refund(s) until doomsday if DE instructs them to through the Treasury Dept's Dept of Fiscal Finance which did sent out a notice to you whether you received it/them or not. IRS will take your tax refund(s) whether you owe DE or not and IRS has no authority to refuse the mandate so do not blame them. The withholds are called TOP Offset (Treasury Offset Program) which by EFT is paid directly to DE by IRS.
I disclosed to IRS what DE and Nelnet did and they didn't like it and helped only as authorized and no more. They must remain neutral. The offset payments reduce your outstanding non-tax debt(s) "BUT"- a big but, the TOP payment once received by DE is dissected into categories that does not reduce your principal much. The largest deduction is the interest - the interest accrued during your non-payment is "capitalized" which is highly profitable in business finance much like a hard money lender and maybe even worse. My first TOP payment paid interest at 79%, a later TOP payment took out 98% interest. The remainder of the payment went to principal and "costs".
Is it legal? Yes... Ethical? No. Interest taken out first sustains a high principal with ineffectual deduction of balance which assures streams of income. I too like you agreed to the loan rehabilitation program. My 8 of 9 payments nears completion within 9 of the ten months required to fulfill the requirements to be "redisciplined" back into normalized loan status. Those payments don't even cover the capitalized interest owed but they do pay into it to keep it from escalating. Know this not stated by DE but their purpose IS to punish you for non-payment or skipped payments. This is evident is misreports, erroneous reports and even fraudulent reports to my CRA's. This is illegal and I will stop it.
The CRA's have told me they are mandated under federal law to do it. They await my report and documentary evidence. They are more than substantial for preponderance because they are DE's records and Nelnet's records. My records corroborate theirs. That's fraud when examined in detail because that is how accounting fraud is accomplished. My suggestions are these:
1) Get your three CRA's reports - each of the three are free every year on request. You can also get free updates through your bank if free monitoring is offered as a banking customer. Creditwise.com, Kreditcarma.com are free also. Know your scores and make it your mission to improve your scores. Be aggressive. This is part of your financial well being.
2) Know how to correct your credit reports - go to youtube.com for free lessons and don't pay for offers to do them because FCRA covers most of how and what to do. Google sites for free sample letters to send to creditors requesting "VALIDATION" - keyword for results. Follow protocol on what you have to do to correct furnished reports. Certify USPS mailing. Get certified mailing labels with numbers at the PO before mailing your letters and print the number on your letter before you mail to creditors. That's the proof on your copies that those were the letters you sent that matches the PO receipt and tracking number. Go to USPS track site and print-out proof of their receipt.
3) Read Fair Credit Reporting Act (FCRA) 15 USC §1681 - it's not very long and not difficult to understand. Know §609 - the "validation" section. For those billed by DE or loan contractors for loans you did not receive look at §605B and the other section relating to fraud. CRA's with your proof of fraud must remove derogatory remarks from your files by federal law...and you can request a "block" of any further incoming false reports, refreshed reports or duplicated reports under this law.
4) Read False Claims Act (FCA) - 15 USC §1681s-2 - give attention to §623 (Accuracy, Prohibition, Duty To Correct) which mandates by federal law what CRA's must do in fairness of your credit reports, especially §623(g) deletion of false reports.
5) Read Mail And Wire/Internet Fraud - 18 USC - §1341; §1343 using the US Postal Service (other commercial carriers as well)to transmit, send, deliver mail with fraudulent billing to deprive you of your money.
6) Think objectively about your case, don't get emotional in your letters or use profanity or threats and write factual, concise and focused business-like letters to your recipient(s) whoever they may be with courteous request for what you ask for....and thank them though you want to chew them out. If you will seek an attorney to file a lawsuit DO NOT DISCLOSE YOUR INTENTION. Just do it when the time comes and let your lawyer handle it. Keep good records and notes for your lawyer to use for construction of your civil complaint and civil suit process. Your lawyer needs your good evidence so keep them safe and never, never give out original evidence until he asks for them to see or possess.. Keep copies for yourself. Do not record phone conversations - it is illegal in most states unless the other person is told it is being recorded. BUT you can take notes of the call and have a witness listening on audio speaker to later attest to the conversation. If collections tells you that the call is being recorded you tell them you are also recording.That's when you find out they aren't recording because they'll hang-up. They aren't licensed collectors if no preadmonition is read to you required under FCRA. That's why you must be armed with knowledge of your consumer rights under federal and state laws so you are able to dispute or disagree in the moment when needed.
7) Those of you mistreated in person or by phone by abusive tone in collection of debt or mislead by misrepresentation in collection of debt or conduct in implication to disgrace you federal law prohibits this: 15 USC § 1692e §807; §807(2)(A); §807(7).
8) For those like me who have more than one loan DE and your loan processor will likely not tell you under federal law you have the right to apply your payment(s) to which is disputed by the consumer.. in accordance with the consumer's directions. 15 USC 1692h §810 - plain English.
9) There are websites you can track your DE loans. I Use: MYEDDEBT.ED.GOV
Again I share my knowledge with you my own research into my own circumstance. Your circumstance may be different in varying complexities but we are faced with a government organization given too much monetary access and legislated powers that are obviously abused and misused. It is not transparent as Congress directed it to be. As consumers we are using a wrecked system not about public service so be vigilant and be armed with as much knowledge you can attain to do what's right for your family and you. God bless you all and God help us....
The DOE are legal thieves. Do not get student loans ever. Schools help the Department of Education and student loan servicers rip students off. No one tells you that you will pay interest on top of interest and fees on top of fees.
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Allowed my ex-husband to forge my name (unknowingly) on consolidation and when I challenged they said he could do it. I had no option. Was paying on loan and they quit taking my payments and sent back my last payment, then sent my loan in to collections.
I have been on hold for 36 minutes, even though the automated service said it would be "approx" 20 minutes. When the agent FINALLY came on, she said she couldn't hear me due to "Static" on the phone. I could CLEARLY hear her and I have FULL BARS and wasn't on WiFi, so there is no reason why my phone would be giving off static. I asked to speak to a manager and I was on hold for another 25 minutes with the girl coming on the line repeatedly to tell me she is on the other line waiting for the manager to answer, she said I could try to call back (yeah so I can be on hold for another hour, no thanks) US Dep of Ed needs and MUST do better at providing service and help to the people trying to find out information about their student loans. This is ABSOLUTELY HORRID, SHAME ON DOE!!!
I WISH YOU COULD GIVE 0 STARS! I have a defaulted student loan that I've been making payments on since 2016 and I went into a rehabilitation program. I was told by Credit Adjustments on 12/12/2018 that I was clear of offset and that everything looked fine. I set up my payments to be auto drafted from my account. I filed my taxes 1/28/2019. I called the offset line 2 weeks later and sure enough there was an offset that was placed on 12/07/2018. I called Credit Adjustments to file a complaint. Waited a few days. The complaint was 'resolved.' At first I was rudely told "the agent's punishment is none of your business?" When clearly it is my business. It's my money being taken and I was given false information from this agent. Then I was told he was talked to and will receive the proper training. But, my offset will still remain certified.
I'm a single mother who is already not making enough income and here you come giving false information. Now the tax refund that I depend on every year is being taken. I'm in a rehabilitation program and also consolidated my loans. I was told on 2/22/2019 that I was inactive for an offset and that it was sent to the treasury. I called the treasury and they said that it was no record of my offset being inactive and my refund was still being taken 2/27/2019. Treasury told me it takes 24 hours for that information to update. Something has got to be done. I just don't understand how you see someone is in a low income payment program so that means what, YOU HAVE A LOW INCOME, why would you take their money?!!
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Please learn from my mistakes and never take out student loans. I owe $32k, yet the DOE wants to garnish $110k from my wages. This is injustice. Don't go to college. Remain free, not a slave. I was so much happier before I went to college. Now I cannot afford a new house, new car, nothing. The DOE is the worst lender in America.
So I called to get a clearance letter that I am no longer on defaulted debt because I already paid it off with a private Loan. Apart from getting this clearance letter They also had collected my Tax Refund. So I called to find out how to get a clearance letter and my tax refund back, automated answering system that always inform you that your wait time is over 60min, after being on hold for 15min calls drop so you have to call all over again and back in the line for another 60min wait. I called 5 times yesterday. I finally gave up then today at 8 am I started calling. Currently on hold at this moment while I'm writing this review. This is my 4th call cause It kept dropping.
They shouldn’t even get one start. Found out I have an offset yet I got no letter or anything and I’m paying to someone else not them. And was told I would not get offset or garnishment of wages. I have every intention of taking them to court for this. They are taking advantage of people.
I'm aware of facts about the Department of Education misuse of federal funds. This department is guilty of stealing my identity in order to receive funds for their own benefit. Lying to students. About the program in order to get cooperation. They forged a promissory note with my signature being typed on such note. They dropped me after the first month of classes. This college I was attending knew that I had no high school diploma. I had failed ability to benefit test... They never let me see my score but signed me up anyway. I agreed because they said I don't need to sign anything. They never gave me any money or counseling for the entering or exit.
They did not explain why I couldn't attend anymore. When I submitted discharge applications I was ignored. They had said there was no record of my enrollment. They COMPLETELY ignore me now. However ten years later they are going to garnish my wages. I had other agencies contact them for comment like the BBB and FTC. They told them they never got my discharge applications. I mailed three and for three different reasons due to I qualified for all reasons listed for discharge. Please say you can help me or investigate my truthful statements of fraudulent practices of this Dept. of Education.
I have read the past posts. When you call the DOE you are actually getting employees of a call center supplied by a contracted vendor. They can't answer questions. Being on the outside, we can't possibly know this. Maximus Federal Services Inc is the vendor and they run every aspect of FSA. Doesn't matter what number you call, you will get a Maximus employee. They work off of a script. If you ask a question not on the script, they will dance around an answer and actually make something up. They don't offer anything because they don't know how.
All complaint departments are also run by Maximus. So essentially, when you complain, you are complaining to them about them. What kind of response do we think we will get. I have complained to every higher up with DOE and have gotten nowhere. All I can offer is, if you are in default and your loan is with the Default Resolution Group, you can sue Maximus in small claims court per FDCPA as they are not legally allowed to collect, maintain, etc debts as they are not bonded and registered with the state of Texas where they are located. Texas requires this. Everything about Maximus can be found on the Government Register.
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