Student Loan Default Triples Loan Amount Owed

[wickfourth]

Does anyone know how to dispute an AES Consolidated SL? I originally borrowed about 30K. It went into default but I consolidated with AES years ago and am paying regularly. However, the balance is 75K. I do not see on my fico where the loan says it defaulted. It shows each loan amount including the loan consolidation. I understand paying finance charges if you default but to triple my loan amount is BS. Does anyone have any advice? Can I dispute? Thanks.

[hodap2001]

Check NSLDS - it will show you when you defaulted and when you consolidated your loans with AES. How long were you defaulted? Did you do Rehabilitation? When you default you accept the consequences of late fees, collection charges, attorney and court fees, etc. Currently the collection charges is 18.9% and interest is compounded daily; therefore, it is very likely that you student loan debt has tripled because of these charges. You should contact the holder of your loan and ask them for your statement of account from when the consolidation was brought to AES and it will show you all of the charges. In addition if you ever requested deferments or forbearance's that adds up too!! Interest never stops accruing.

 

There is nothing you can do now, since it's been years of you paying on it from when you originally defaulted.

 

Good Luck!

Edited July 25, 2014 by hodap2001

[evapor8ted]

Are you paying less than monthly interest? Have you ever used a deferment or forbearance? Did you pay the accrued interest during that time or did you allow it to capitalize?

 

There was a fee capitalized on the balance when you consolidated due to it being a defaulted loan, likely a fee of 18.5% but it depends on when exactly you consolidated.