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Full Version: My Perkins is in default, but my school didn't contact me....
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halliemach
Hey folks,

So, here's my story:

I recently found out via email from my school that my Perkins loan was past due. (I graduated in July 07) I asked about deferment options and was told to speak to the General Accounting Office. Once I actually talked to someone in General Accounting, they told me that it was default and sent to collections (GRC) in September 08! No one contacted me before then. When I asked why I wasn't contacted, they told me that they sent letters (to an out of date address) and called my references (one of which was disconnected and the other "didn't answer"). I told them that I updated all of my information at the "my" system so that shouldn't have been a problem. They said that they didn't use that system!!!!

The "my" system is integrated into every other aspect of the university, from financial aid to library books and parking fees. How was I supposed to know that in this particular dark corner of campus (aka General Accounting), they weren't "connected" to the rest of the campus. And even if that is the case, couldn't they call they financial aid office and ask for my current information?

I want them to retract it from collections (it is possible) and allow me to make payments directly to them. I was told to write a letter to the manager of the Accounting Office.

I'm also in the middle of consolidating with Direct Loans, but would like to work directly with my school so that I don't have that ugly default on my NSLDS or credit.

I know that what they will say is that I was supposed to keep in mind the timeline and know when my first payment began, but to not contact me when I used the only form of communication that I thought I had with my school ("my" system) seems unfair.

Does this seem right?

Thanks for your comments and suggestions.
LynnInMN
You are going to be SOL on getting the default removed. As a borrower you are expected to know when your deferment ended which was probably a year ago or more by my calculations. Accounting systems for Perkins are always kept seperate from general accounting systems in the school...I know the school I worked for had the same system with seperate notifications. The DOE also takes a pretty strong stand on the student being responsible for their loans even if they dont receive notification.
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