So all of my student loans have been officially messed up, thank god I'm actually paying attention to this...
I'm stuck in the following loop Direct Consolidation -> Sallie Mae -> Direct Loans Repeat.... Everytime I call one of them they tell me they can't do anything and its one of the other 2 that has to fix it.... Its amazingly awesome... Add to this I've been trying to get it fixed for about a month now, I've sent physical letters to all of them including the Ombudsmen office at dept of ed.
All the response I get back make it clear they did not even read my letter.... the long story short is I did a direct consolidation... and one of the loans never got paid according to salliemae... but direct consolidation says it was. They always say its going to work its self out but it doesn't... Now they are applying payments incorrectly so I'm having to make over payments so that nothing falls delinquent and now this months payment they are claming hasn't happened at all even though I have a canceled check from the bank saying it did.
I'm at a complete loss as to what the heck I should do next.. I'm not paying an extra $4k in student loans I never received!
Department of Ed/Sallie Mae Loans
Started by
johnny5
, Jun 18 2012 12:26 PM
5 replies to this topic
#1
Posted 18 June 2012 - 12:26 PM
#2
Posted 18 June 2012 - 02:35 PM
You're going to have to clarify your post for help.
Your Fed backed loans were with Sallie Mae? And then transferred to Direct Lending for consolidation? What is Direct Loans Repeat, mean? You do not have to make 'overpayments'. How much is DL saying they sent to SM? Any chance that $4k loan was a private loan?
The world of Fed backed loans is one HOT MESS right now. That's the bad news. Loans are taking MONTHS to show up at a new servicer and they're in limbo until they get there. Mine are in the process of being transferred and I'm being told expect at least 3 months for them to show up. They are doing everything they can to remove lates, etc.
Your Fed backed loans were with Sallie Mae? And then transferred to Direct Lending for consolidation? What is Direct Loans Repeat, mean? You do not have to make 'overpayments'. How much is DL saying they sent to SM? Any chance that $4k loan was a private loan?
The world of Fed backed loans is one HOT MESS right now. That's the bad news. Loans are taking MONTHS to show up at a new servicer and they're in limbo until they get there. Mine are in the process of being transferred and I'm being told expect at least 3 months for them to show up. They are doing everything they can to remove lates, etc.
#3
Posted 19 June 2012 - 11:56 PM
You're going to have to clarify your post for help.
Your Fed backed loans were with Sallie Mae? And then transferred to Direct Lending for consolidation? What is Direct Loans Repeat, mean? You do not have to make 'overpayments'. How much is DL saying they sent to SM? Any chance that $4k loan was a private loan?
The world of Fed backed loans is one HOT MESS right now. That's the bad news. Loans are taking MONTHS to show up at a new servicer and they're in limbo until they get there. Mine are in the process of being transferred and I'm being told expect at least 3 months for them to show up. They are doing everything they can to remove lates, etc.
Sorry,
Direct Loans -> Repeat at start of chain again..
Short quick version is DL Says they Paid $37k, Salliemae says they only got $33k. My Consolidated loan got transferred over to SallieMae So the $37k loan disappeared for about a month. Now SallieMae says I owe $41k. It seems everyone just keeps pointing the finger at the next person.
The overpayment is because I've been paying on the 37k full payments and made full payments on the 4k loan, because I refuse to let them hit me with a late or anything derogatory. I realize in the end it would get sorted out and if anything bad had been reported it could be fixed but I'd rather not have to fix it and I can afford the overpayment I'm just irritated that its happening.
I was finally able to convince the front line CSR at Direct Loan Consolidation to transfer me up the chain a bit, and I spoke with someone today who claimed to be able to see that apparently SallieMae returned the $4k (for some unknown reason), so he was putting in a request that my Consolidated loan be redone removing that returned 4k. He said I should have updated paperwork in the mail in 7-10 days and gave me his extension and told me to call him in 11 if I have not seen anything mail or via SallieMae.
It's just appalling to me how terribly organized these agencies seem to be, its like a giant rube goldberg of loans and lending. Completely beyond me why Direct Loans is not just serving all new loans they make. Why do they need to outsource it? How could it possibly be easier/cheaper to have these 3rd party services involved.
#4
Posted 20 June 2012 - 10:34 AM
Glad you got everything resolved. Give yourself a reminder to follow up as I'm still waiting for research from Jan. 
When the Feds decided to only offer Direct Loans they cut out all previous FFELP lenders from their piece of the pie. That made a lot of people unemployed. Now you have inexperienced Newb's that are attempting to answer a question and some answers I've gotten are downright scary. Besides, November is coming.
When the Feds decided to only offer Direct Loans they cut out all previous FFELP lenders from their piece of the pie. That made a lot of people unemployed. Now you have inexperienced Newb's that are attempting to answer a question and some answers I've gotten are downright scary. Besides, November is coming.
#5
Posted 22 July 2012 - 10:23 AM
The EXACT same issue is happening to me right now and it cannot be a coincidence because the sum MISSING is nearly the same as Johnny5's $4,040.00.
May 2012 I consolidated 5 loans which Direct Loans states they paid off in full on July 3, 2012. Sallie Mae states they only received payment for four loans and now wants a payment for "remaining loan".
Direct Loans also states Sallie Mae has 30 days to post the monies received, however having read Johnny's post I see now that I am in for a major fight.
How in the hell do I find out / prove which side is wrong – DLC or Sallie Mae? Whom do I contact – another government agency? I will start with the FTC and my states Attorney General and anyone else I can think of.
There is a clear pattern of theft and deception going on throughout ALL aspects of our country's financial system and this is my personal punch in the face from both the corporation and the government.
If I cannot manage to clear this up before the payment is due I have absolutely no other option but to default.
I have never missed a payment on any loan especially my school loan because I am an honest person but now I realize that honesty in today's world gets you nothing except punishment.
I realize this will destroy my credit but what other choice do I have and I REFUSE to be a victim. If this is any indication of the problems our nation is experiencing then god help us (the little guy's) because we are in for a world of hurt.
For you Californians out there – check out the recent issue of eminent domain. A hedge fund has convinced San Bernardino County to consider seizing "underwater "mortgages from homeowners that are CURRENT on their payments. You read that right.
May 2012 I consolidated 5 loans which Direct Loans states they paid off in full on July 3, 2012. Sallie Mae states they only received payment for four loans and now wants a payment for "remaining loan".
Direct Loans also states Sallie Mae has 30 days to post the monies received, however having read Johnny's post I see now that I am in for a major fight.
How in the hell do I find out / prove which side is wrong – DLC or Sallie Mae? Whom do I contact – another government agency? I will start with the FTC and my states Attorney General and anyone else I can think of.
There is a clear pattern of theft and deception going on throughout ALL aspects of our country's financial system and this is my personal punch in the face from both the corporation and the government.
If I cannot manage to clear this up before the payment is due I have absolutely no other option but to default.
I have never missed a payment on any loan especially my school loan because I am an honest person but now I realize that honesty in today's world gets you nothing except punishment.
I realize this will destroy my credit but what other choice do I have and I REFUSE to be a victim. If this is any indication of the problems our nation is experiencing then god help us (the little guy's) because we are in for a world of hurt.
For you Californians out there – check out the recent issue of eminent domain. A hedge fund has convinced San Bernardino County to consider seizing "underwater "mortgages from homeowners that are CURRENT on their payments. You read that right.
#6
Posted 22 July 2012 - 08:01 PM
So Sorry your going through this too!
A Quick update from my end, this is still not truly solved though allegedly progress has been made... As it stands now the money has still not been credited to ether the loan that was supposed to be paid or the new consolidated loan that generated the money. However I've finally gotten escalated up with some higher folks at Direct Loans who seem to be more helpful and still to this day the people at SallieMae are completely useless. Allegedly we are just waiting for Sallie Mae to apply the appropriate credits and everything should be finally fixed though I'm not convinced this will happen in a timely manor or be the end of it.
The best advice I have to give is: Do not give up, its taken hours of phone calls to everyone I can think of and I've written several letters but as I said I'm finally dealing with people who are actually doing more than just saying "oh it will solve its self" they are actually looking into things, researching the issues having conference calls with salliemae, etc. Hopefully this is all solved in the very near future for me.
Also if you can afford it it might be worth making the minimum payment on that loan just until things get sorted out so you don't have to deal with the added complication of late payments on your credit down the road which may prove even more difficult to get rid of. Eventually once its all solved you should be credited that money back to you in some way or another.
A Quick update from my end, this is still not truly solved though allegedly progress has been made... As it stands now the money has still not been credited to ether the loan that was supposed to be paid or the new consolidated loan that generated the money. However I've finally gotten escalated up with some higher folks at Direct Loans who seem to be more helpful and still to this day the people at SallieMae are completely useless. Allegedly we are just waiting for Sallie Mae to apply the appropriate credits and everything should be finally fixed though I'm not convinced this will happen in a timely manor or be the end of it.
The best advice I have to give is: Do not give up, its taken hours of phone calls to everyone I can think of and I've written several letters but as I said I'm finally dealing with people who are actually doing more than just saying "oh it will solve its self" they are actually looking into things, researching the issues having conference calls with salliemae, etc. Hopefully this is all solved in the very near future for me.
Also if you can afford it it might be worth making the minimum payment on that loan just until things get sorted out so you don't have to deal with the added complication of late payments on your credit down the road which may prove even more difficult to get rid of. Eventually once its all solved you should be credited that money back to you in some way or another.
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