OK, I have straightened out 8 student loans, but my Perkins are a nightmare. I have defaulted on them, but am currently eligible (so I think) for the 100% public service cancellation, but the CA--Williams & Fudge is impossible to deal with. I sent a letter asking for validation, which I fully know the school can provide, and they responded with just a copy of the signature page of the promissory notes from 10+ years ago.
Originally, I'd asked the school to recall the loans, but they wanted just as much a month for the original $5K in loans as the Dept. of ED was willing to take on $46K in loans. I couldn't do both, and the school wouldn't budge.
So, since I'm dealing with a CA that refuses to even tell me simple things like whether they've been assigned or have purchased the loan, my second request for validation was met with a *lovely* Christmas letter that they sent to the school on the 16th, asking for a $110 lawsuit filing fee, and stating that "they've tried to no avail to collect on this account" (b.s.--3 letters and my replies to them) and believe that suit is the only option. This seems so odd to me, as those of us that browse this forum know that it doesn't require them taking me to court to get their $$$.) Anyway, out of sheer frustration, I just sent a brief email to the school's staff person indicated in the letter, asking her to hold off. I said that I would send full documentation via certified mail tomorrow, but that even though the loans should have been cancelled, that I will enter rehab if necessary until this can be cleared up.
Maybe I'd be better off if they do try to take me to court, as I've exchanged numerous letters with the school and 2 CA's and now have an open case with the Ombudsman's office to deal with this? I can show that their payment demands were unreasonable in proportion to my income. This has been going on for 10 months, but now it's exploding over the holidays when it will be next to impossible to correspond with anyone. I'm at a loss.
On top of me just venting, I'm wondering if anyone has some sage advice?
Full Version: My Perkins loans are a nightmare!
It sounds like your school is willing to call your Perkins loans back from the ca. If you can make your case for being eligible for cancellation of your loans, you can always say "these loans should have been in an in-service deferment status (postponement of payment) instead of repayment". The school does NOT want your loans to go into a default status. Each school has a 'default rate' which is monitored by the Dept of Ed.
You can visit the US Dept of Ed's website and do a search for 'Perkins Cancellation' or 'cancellation'. This will give you the criteria you must meet depending on when you borrowed your loans and your occupation. If you have copies of your original promissory notes, they will have the same info on cancellation.
Your former school is the only authority for determining if you are eligible for cancellation. There are no appeal rights to the US Dept of Ed so I would try to stay on the good side of your school.
You can visit the US Dept of Ed's website and do a search for 'Perkins Cancellation' or 'cancellation'. This will give you the criteria you must meet depending on when you borrowed your loans and your occupation. If you have copies of your original promissory notes, they will have the same info on cancellation.
Your former school is the only authority for determining if you are eligible for cancellation. There are no appeal rights to the US Dept of Ed so I would try to stay on the good side of your school.
I am in default on the Perkins loans only. It's the other 8 that are in good standing.
I'd been in default for many years--the funny thing was that no one ever bothered me--they just did tax offsets. Two years ago, I began paying the Dept. of ED $150/mo., and *thought* I was paying on ALL of my loans. It turns out I was paying on 8 loans, and that there was a 9th loan, a Perkins loan, out in left field. It turned out that the loan was assigned to General Revenue out of Ohio. When I asked them for rehab, they instead sent consolidation papers. When I pushed for copies of the promissory note, they passed the collections off to Williams & Fudge (W&F).
I again contacte the school, begged for rehab and asked them to recall the debt. They refused and said the only condition that they would do it was if I could commit to $150/mo. on the original $2,100 loan in order to rehab--saying that gov't standards was to demand 5% of my "disposable" income. I explained that I was already paying 7% of my disposable income on other federal student loans. The school didn't care and refused to rehab with the amount I was offering and sent a letter saying, "Too bad, so sad, deal with the CA."
Back to now, when I'm dealing with W&F. I asked for validation, specifically copies of the promissory note--they responded by sending the signature page only, along with consolidation forms, saying, "Just fill out these forms and this will all be taken care of..." I sent the next certified mail in mid-Nov., asking for the full documents, and asking how they are affiliated with General Revenue. They signed for it on Nov. 24, but no response yet. Instead, I got a copy of a letter from an attorney that W&F has supposedly hired that was sent to the school. It specifically asks the school to send them a check for $110 for filing fees, as they've deemed that I'm not willing to pay.
I have copies of several certified letters to show I've been trying to work on this and am hoping the Ombudsman's office will work with me quickly. This is frustrating, and certainly a lot of work!
I'd been in default for many years--the funny thing was that no one ever bothered me--they just did tax offsets. Two years ago, I began paying the Dept. of ED $150/mo., and *thought* I was paying on ALL of my loans. It turns out I was paying on 8 loans, and that there was a 9th loan, a Perkins loan, out in left field. It turned out that the loan was assigned to General Revenue out of Ohio. When I asked them for rehab, they instead sent consolidation papers. When I pushed for copies of the promissory note, they passed the collections off to Williams & Fudge (W&F).
I again contacte the school, begged for rehab and asked them to recall the debt. They refused and said the only condition that they would do it was if I could commit to $150/mo. on the original $2,100 loan in order to rehab--saying that gov't standards was to demand 5% of my "disposable" income. I explained that I was already paying 7% of my disposable income on other federal student loans. The school didn't care and refused to rehab with the amount I was offering and sent a letter saying, "Too bad, so sad, deal with the CA."
Back to now, when I'm dealing with W&F. I asked for validation, specifically copies of the promissory note--they responded by sending the signature page only, along with consolidation forms, saying, "Just fill out these forms and this will all be taken care of..." I sent the next certified mail in mid-Nov., asking for the full documents, and asking how they are affiliated with General Revenue. They signed for it on Nov. 24, but no response yet. Instead, I got a copy of a letter from an attorney that W&F has supposedly hired that was sent to the school. It specifically asks the school to send them a check for $110 for filing fees, as they've deemed that I'm not willing to pay.
I have copies of several certified letters to show I've been trying to work on this and am hoping the Ombudsman's office will work with me quickly. This is frustrating, and certainly a lot of work!
I understood that this debt was for a Perkins loan. If you consolidate as the ca wants you to do, you will loose your rights to any cancelation.
If you could deal with the school instead of the ca, they would be able to put the Perkins loan back in good standing so that it can be canceled instead of you paying off the balance.
If you could deal with the school instead of the ca, they would be able to put the Perkins loan back in good standing so that it can be canceled instead of you paying off the balance.
That's my hope. I got a brief response from the woman I emailed today. She said they'll be closed until the 27th and will wait for my documentation. I sent a synopsis and 19 pages of correspondence between everyone named above over the last 9 months.
My next hope is that although there are about 10 employees in their office, that maybe she'll look at it more closely than her co-worker did last winter. Also, I'm hoping that the same person doesn't try to intercept anything, as that's what I believe happened when I was writing to the director of the division last spring and wasn't getting ANY response.
You're right, snowpuppy, my hope is that even if I have to pay a rehab for a year, I can get the balance paid through cancellation.
Anything is better than having to come up with the full loan amount. In any case, I refuse to consolidate without rehab, even though they've all come off my credit reports.
My next hope is that although there are about 10 employees in their office, that maybe she'll look at it more closely than her co-worker did last winter. Also, I'm hoping that the same person doesn't try to intercept anything, as that's what I believe happened when I was writing to the director of the division last spring and wasn't getting ANY response.
You're right, snowpuppy, my hope is that even if I have to pay a rehab for a year, I can get the balance paid through cancellation.
Anything is better than having to come up with the full loan amount. In any case, I refuse to consolidate without rehab, even though they've all come off my credit reports.
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.