I have a question I hope some of you may be able to answer, I notice some of you are former FA counselors or loan officers.

This is kind of long & complicated. I recently consolidated all my student loans, they were federal direct loans. I graduated college in dec of '04, however, a few months ago when I contacted the dlsc to inquire about my repayment plans, they stated that my loans had defaulted and were now with a collection agency and all correspondance should go through them. I fought with all aprties involved for a few months and finally just consolidated the loans and let the negative items stay on my report after I was told that I could still get the default status changed after they were consolidated. I figured this was the worst way they could show on my report but no harm if I could get the original default status changed.

My argument was very simple. I never left school so there's no way I could've defaulted. The situation unfolded like this. In 2001, I took classes at a community college affilliated with my university, same school just different classifications for the students. Well because I was not pursuing an associate's degree but a bachelor's degreee, at this time, the cc classified me as "non-degree seeking" which the school's computer system doesn't report to the national clearinghouse which in turn reports to lender. I got documentation from the school stating that this is what happened and have forwarded it to US Dept of Ed. In addition, the DLSC informed me that they had address XXXX Generic st in owensboro, ky and I lived in Bowling Green, Ky and had never lived at the owensboro address, which is why I never recieved any notification. My first reply to all this correspondance was that i was basically out of luck because, the dispute wasn't issued in a timely manner and that it was my responsibility, not the school's to report my attendance.

During my entrance counseling, i was told, and recieved a booklet of my rights and responsibilities while a student and it basically said that I was to report, TO MY SCHOOL'S FA office, any changes in address, enrollemnt. At no poit was I told, nor is it listed in my booklet, that I confirm my own enrollment. I never had before! I would guess that most people do not, but in a mix up like this it is all of a sudden my responsibility!?! I've been told the phone both "send in the documentation we'll get it taken care of" and I've told "you're out of luck"

Which is right, do I have any other recourse? Would a goodwill letter work after my consolidated loans have been in repayment for a while?

bump...anyone? anyone?

The Universtiy will only continue on with the deferments and report you if you are registered at that school. When you attended the CC it became your responsiblity to get your own deferment papers submitted. Schools are often affliated for programs but for financial aid purposes, there is no connection. There is a University near me that has a split program in education. A lot of people take the first 2 years at the CC and then finish up at the University. Both have their own registration and financial aid systems but the two do not interface. So once a student hits that 3 yr, they have to take over the deferements.




This is also on your prom note loan disclosure statement with Direct Loans. You also have a responsiblity to notify the DLSC of any change. Did you move during that period? Was the generic address a references address?? If you moved and Direct Loans started getting mail return, they will contact your references and make skip tracing attempts.

I don't recall if I moved during this specific time period but I was in college I moved a lot, so that is a distinct possibility.

As far as the CC goes, and this may not be unique, we did share a FA office, administration etc, it was an arm of the universityWe even shared the same reg system. It was my understanding that it was no different that the "college of business" "college of fine arts", etc . students could go back and forth without re-applying, but I didn't know that which is why I filled out the application. The school told me they still would've automatically reported them at the CC had I not checked that not pursuing a degree box. This even continued after I had gotten this resolved, the woman with the registrars office said this just kind of broke the chain. Or did she not know what she was talking about?

Is it even possible that I could get these resolved. I know they have their policies and all but is no credence given to the fact that I was indeed in school? The loans are now paid off anyway.