There seems to be a discrepancy for my loan. I’ve just noticed that there are two (2) loans on my account. I’ve never signed for two (2) loans. I no it was a long time ago and my memory may be questioned. So I’m going to explain why I’m certain. This was back in 1992 -- The school closed shortly thereafter (I just found out by doing a web search) 1993 (reasons were fraud).

I have two kids and they were really young then (2 and 3) – the reason I went to the school was because I could get a certificate in 12 weeks in data entry and word processing and to find a job. My mother-in-law was getting tired of watching my kids and couldn’t wait till I finished and after the twelve weeks were up she told me that she would no longer watch the kids. I know some people stayed on the get certified in other things, especially since I only learned data entry (which I could have taught my self)– I however did not stay – I didnt gain anything while going there.

I digress…

The school which never kept its promise of helping me with my resume, helping me find a job, helping me to send out resume and giving me a list of jobs that were hiring directly from the school. I went back to the school after I received my certificate so that I could get the help I needed and they were closed. As a matter of fact I received a certificate in data entry and word processing – I’ve never did any word processing and still to this day I have no idea what that is/was. That why I never would have kept going back.

There’s some other things I’m confused about – I spoke to a gentleman at CSI (the place my loan was sent) and he told me I agreed to consolidate my loans maybe a year ago. I called whomever my loan was with at the time to make arrangements to pay my loan (which I thought was one loan). I do not remember anyone ever telling me I had two loans.

I’ve always wondered why my loan never seemed to go down – even when my income tax was sent to them – it always looked the same. I never realized they were sending me two statements. I just figured interest was a killer. I would like to know if I could get a copy of everything you have and would like to know who I could talk to regarding this matter.

I owe more than $8,000 for a 12 week course. The original loan was for more like 2500-3000 (dont remember tthe exact numbers)

Here's the article:

A r c h i v e d I n f o r m a t i o n
FOR RELEASE Contact: Rodger Murphey November 21, 1996 (202) 401-1576
Trade School Operators Plead Guilty to Fraud and Conspiracy
The president and CEO of a national chain of computer schools has pleaded guilty to felony charges filed in Akron, Ohio.

Irwin Mautner, of Greenwich, Conn., was charged with mail fraud, conspiracy to defraud the U.S. Department of Education, and making a false statement in connection with a matter within the jurisdiction of the department. Each violation carries a maximum penalty of five years imprisonment and/or a $250,000 fine.

Mautner was the head of Programming and Systems, Inc. (PSI), headquartered in New York. PSI operated vocational schools in Baltimore; Charlotte, N.C.; Cleveland; Columbus, Ohio; Flint, Mich.; Indianapolis; Miami; New York; Philadelphia; Southfield, Mich.; and Washington, D.C. The schools closed in 1992 and 1993.

From July 1988 through September 1993 -- the period covered by the indictment -- PSI schools received federally insured student loans totaling more than $100 million and Federal Pell Grant funds totaling more than $41 million. The indictment charged that Mautner participated in a scheme to defraud the Education Department by concealing the high rate of student withdrawals at PSI schools in order to prevent the schools from losing their accreditation, and consequently, the schools' eligibility to receive federally insured loans and grants.

PSI was a publicly traded corporation, which at one time had more than 3.6 million shares of stock outstanding and annual revenues in excess of $31 million.

Mautner had previously consented in December 1994 to civil penalties imposed by the Securities and Exchange Commission in connection with false financial statements submitted to the commission..

Mautner, PSI National Financial Aid Director Ronald Sundick, and the corporation were indicted in Cleveland on August 13, 1996, by a federal grand jury for the Northern District of Ohio. In a plea agreement with the government, Sundick pleaded guilty on November 14, 1996, to a one count information that charged him with violation of Title 18, United States Code 1516, Obstruction of a Federal Audit.

Mautner and Sundick are scheduled to be sentenced early next year.

Assistant United States Attorney James C. Lynch presented the plea before Federal District Court Judge Sam Bell.

In reaction to the pleas, Education Department Inspector General Thomas Bloom said, "We are pleased with the progress of the PSI investigation. The Office of Inspector General is committed to a continuation of aggressive investigations of individuals who commit fraud in education programs. Neither taxpayers not students can afford fraudulent activities in programs designed to help those who are ultimately victimized by those same activities."

The case was investigated by the Cleveland office of the Federal Bureau of Investigation and the U.S. Department of Education Office of Inspector General in Pittsburgh.

COULD SOMEONE POINT ME IN THE RIGHT DIRECTION? OR IS IT TOO LATE?

If this is a federal student loan, then you have a tradeline that is the original and one that is when you defaulted and it was sent to the guarantor for collection. It's one loan, but it has been held by two different entities. Since it was 13 years ago, interest and penalties have accrued, making the loan two to three times what it was.

What makes me believe this is a federal loan is that you said it was "consolidated" and your tax returns were garnished.

After you consolidated, you didn't make payments?

Yes I made payments after I consolidated (I only wanted my payments after defaulting - I did not know I was consolidating -- until the other day) -- then stopped about a year ago -- I'm starting to make payment again.

But I swear something doesnt seem right.

Is there anyway I could get my signed loan agreement? With a tally of interest and penalties accrued?

Oh by the way it is Federal Loan.

Sure you can request it, but be very careful about how you approach it. If you send them a letter telling them that you don't recall the second loan and you would be grateful if they will forward the promissory notes to you, that would be a good way to show that you are willing to make the payments and you're not stalling. Also, at that time, request a statement of account and tell them that again, you're just confused as to how many loans there are.

I have to tell you though, it doesn't SOUND like two loans to me. It sounds to me like one loan (particularly if you consolidated) that has grown exponentially due to interest and fees.

What are you basing your fear of a second loan on?

When I called the Dept of Educ they told me I had two loans -- Which had PSI listed twice.

Then, yeah, I'd ask for copies of everything. Tell them that the school was closed down for fraud and you just want to be sure that these loans truly belong to you because you only remember the one.

Thanks TxQuiltGirl