For a friend.
Her Federal stimulus tax refund was intercepted for a 20+ year old student loan. She has NO records of the student loan but I was able to determine that her institution closed in 1987. It is my understanding that for loans originated after April 1986 could be canceled should the educational institution went out of business.
She called the DOE as indicated upon receipt of the garnishment letter for details and the response is a debt collection letter from the CBE group for approximately $8500. No supporting documentation is enclosed but the requisite right to demand validation is mentioned.
Would sending a DV letter requesting documentation of the alleged loan be the best way to go ?? I suspect that she will be filing a claim to cancel the loan based on the closure of the educational institution.
Any advice would be appreciated.
Thanks.
Full Version: 20+ year old student loan from closed institution
QUOTE(hoapres @ May 20 2008, 08:22 PM) 
For a friend.
Her Federal stimulus tax refund was intercepted for a 20+ year old student loan. She has NO records of the student loan but I was able to determine that her institution closed in 1987. It is my understanding that for loans originated after April 1986 could be canceled should the educational institution went out of business.
She actually had to be in attendance when the school closed. Often when schools close, arrangements are made with other institutions for students to finish too.
From the DOE site....
Closed School
You may be eligible to have your loan discharged, if you did not complete the program of study and either of the following is true:
the school closed while you were attending, or
the school closed within ninety days after you withdrew from the school
What to Do:
You must complete and submit a closed school discharge application form. You can request this form from the agency that holds your loan, or you can download it now. Check a recent demand letter or bill for this loan; if the address to which you are requested to send payment is the National Payment Center in Greenville, TX, you should submit your completed form to:
UNITED STATES DEPARTMENT OF EDUCATION
FEDERAL STUDENT AID
Processing Group Regional Office, Room 8633
50 Beale Street
San Francisco, CA 94105-1813
You may request a copy of this discharge application form by calling 1-800-621-3115.
She called the DOE as indicated upon receipt of the garnishment letter for details and the response is a debt collection letter from the CBE group for approximately $8500. No supporting documentation is enclosed but the requisite right to demand validation is mentioned.
She can look up the information online herself http://www.nslds.ed.gov/nslds_SA/
Would sending a DV letter requesting documentation of the alleged loan be the best way to go ?? I suspect that she will be filing a claim to cancel the loan based on the closure of the educational institution.
Any advice would be appreciated.
Thanks.
Her Federal stimulus tax refund was intercepted for a 20+ year old student loan. She has NO records of the student loan but I was able to determine that her institution closed in 1987. It is my understanding that for loans originated after April 1986 could be canceled should the educational institution went out of business.
She actually had to be in attendance when the school closed. Often when schools close, arrangements are made with other institutions for students to finish too.
From the DOE site....
Closed School
You may be eligible to have your loan discharged, if you did not complete the program of study and either of the following is true:
the school closed while you were attending, or
the school closed within ninety days after you withdrew from the school
What to Do:
You must complete and submit a closed school discharge application form. You can request this form from the agency that holds your loan, or you can download it now. Check a recent demand letter or bill for this loan; if the address to which you are requested to send payment is the National Payment Center in Greenville, TX, you should submit your completed form to:
UNITED STATES DEPARTMENT OF EDUCATION
FEDERAL STUDENT AID
Processing Group Regional Office, Room 8633
50 Beale Street
San Francisco, CA 94105-1813
You may request a copy of this discharge application form by calling 1-800-621-3115.
She called the DOE as indicated upon receipt of the garnishment letter for details and the response is a debt collection letter from the CBE group for approximately $8500. No supporting documentation is enclosed but the requisite right to demand validation is mentioned.
She can look up the information online herself http://www.nslds.ed.gov/nslds_SA/
Would sending a DV letter requesting documentation of the alleged loan be the best way to go ?? I suspect that she will be filing a claim to cancel the loan based on the closure of the educational institution.
Any advice would be appreciated.
Thanks.
QUOTE(LynnInMN @ May 20 2008, 10:36 PM)
QUOTE(hoapres @ May 20 2008, 08:22 PM)
For a friend.
Her Federal stimulus tax refund was intercepted for a 20+ year old student loan. She has NO records of the student loan but I was able to determine that her institution closed in 1987. It is my understanding that for loans originated after April 1986 could be canceled should the educational institution went out of business.
She actually had to be in attendance when the school closed. Often when schools close, arrangements are made with other institutions for students to finish too.
From the DOE site....
Closed School
You may be eligible to have your loan discharged, if you did not complete the program of study and either of the following is true:
the school closed while you were attending, or
the school closed within ninety days after you withdrew from the school
What to Do:
You must complete and submit a closed school discharge application form. You can request this form from the agency that holds your loan, or you can download it now. Check a recent demand letter or bill for this loan; if the address to which you are requested to send payment is the National Payment Center in Greenville, TX, you should submit your completed form to:
UNITED STATES DEPARTMENT OF EDUCATION
FEDERAL STUDENT AID
Processing Group Regional Office, Room 8633
50 Beale Street
San Francisco, CA 94105-1813
You may request a copy of this discharge application form by calling 1-800-621-3115.
I got a copy of the discharge form. She was probably in attendance when the school closed in 1987 and claims that no offers were made to finish the training somewhere else. That might be realistic since we are talking about apparently a nine month business school.
She called the DOE as indicated upon receipt of the garnishment letter for details and the response is a debt collection letter from the CBE group for approximately $8500. No supporting documentation is enclosed but the requisite right to demand validation is mentioned.
She can look up the information online herself http://www.nslds.ed.gov/nslds_SA/
Thanks. Nice information to have.
Would sending a DV letter requesting documentation of the alleged loan be the best way to go ?? I suspect that she will be filing a claim to cancel the loan based on the closure of the educational institution.
Any advice would be appreciated. Thanks for the response.
Thanks.
Her Federal stimulus tax refund was intercepted for a 20+ year old student loan. She has NO records of the student loan but I was able to determine that her institution closed in 1987. It is my understanding that for loans originated after April 1986 could be canceled should the educational institution went out of business.
She actually had to be in attendance when the school closed. Often when schools close, arrangements are made with other institutions for students to finish too.
From the DOE site....
Closed School
You may be eligible to have your loan discharged, if you did not complete the program of study and either of the following is true:
the school closed while you were attending, or
the school closed within ninety days after you withdrew from the school
What to Do:
You must complete and submit a closed school discharge application form. You can request this form from the agency that holds your loan, or you can download it now. Check a recent demand letter or bill for this loan; if the address to which you are requested to send payment is the National Payment Center in Greenville, TX, you should submit your completed form to:
UNITED STATES DEPARTMENT OF EDUCATION
FEDERAL STUDENT AID
Processing Group Regional Office, Room 8633
50 Beale Street
San Francisco, CA 94105-1813
You may request a copy of this discharge application form by calling 1-800-621-3115.
I got a copy of the discharge form. She was probably in attendance when the school closed in 1987 and claims that no offers were made to finish the training somewhere else. That might be realistic since we are talking about apparently a nine month business school.
She called the DOE as indicated upon receipt of the garnishment letter for details and the response is a debt collection letter from the CBE group for approximately $8500. No supporting documentation is enclosed but the requisite right to demand validation is mentioned.
She can look up the information online herself http://www.nslds.ed.gov/nslds_SA/
Thanks. Nice information to have.
Would sending a DV letter requesting documentation of the alleged loan be the best way to go ?? I suspect that she will be filing a claim to cancel the loan based on the closure of the educational institution.
Any advice would be appreciated. Thanks for the response.
Thanks.
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