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jen2ke

Partial Perkins Default?

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Graduated college in 2005. In 2006, consolidated my loans through ACS Education. My private loans were through Sallie Mae and were paid in full in 2015. My loan was sent to Brazos and then to Nelnet approximately a year ago. I have a balance of approx $11,000.

My employer offers a full tuition grant for graduate school. In applying for the school, I received an error that my transcript from my undergrad school was being held. I called the school and they said when my loans were consolidated, the Perkins loan was not fully paid. It was $4000 and they were approx $500 short, which had defaulted. She said this data was on the NSLDS and directed me to ECSI.

Confused as to how this was true since I’ve never been contacted in 13 years for this balance, am a borrower on two houses with VA loans, am a military spouse with my SSN registered, I tried to log into the NSLDS. I pulled all three credit agency’s reports and have no record of any defaulted or late loans and at my last credit score check have a 791.

When logging in with my FSA ID, I get an error that Your identifiers were not found in the NSLDS and to contact Federal Student Aid. I did get married and changed my last name in 2012 (7 years after graduating) and updated it the next week with the Social Security Administration, banks, etc. I spoke with the Student Aid helpdotgov and was told that there was a discrepancy on the account preventing them from viewing or accessing the account. They said to call American Student Assistance with a number that is for ECMC. The school said to call ECSI.

I believe these are separate companies. My servicer for my loans is Nelnet. Has anyone had this happen? Can a Perkins loan be paid up to date and a partial amount defaulted? Is it not odd that it has never hit my credit or affected me until I tried to get my transcript? Unsure where to go here to know if the amount is even valid as I cannot access NSLDS to verify any of it. The amount is supposedly only $500. Will they let me just pay this in full? The school said I would need to reconsolidate which I obviously don’t want to do for such a small amount. Can this now appear on my credit after all of these years of not being there? Help!

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Graduated college in 2005. In 2006, consolidated my loans through ACS Education. My private loans were through Sallie Mae and were paid in full in 2015. My loan was sent to Brazos and then to Nelnet approximately a year ago. I have a balance of approx $11,000.

My employer offers a full tuition grant for graduate school. In applying for the school, I received an error that my transcript from my undergrad school was being held. I called the school and they said when my loans were consolidated, the Perkins loan was not fully paid. It was $4000 and they were approx $500 short, which had defaulted. She said this data was on the NSLDS and directed me to ECSI.

Confused as to how this was true since I’ve never been contacted in 13 years for this balance, am a borrower on two houses with VA loans, am a military spouse with my SSN registered, I tried to log into the NSLDS. I pulled all three credit agency’s reports and have no record of any defaulted or late loans and at my last credit score check have a 791.

When logging in with my FSA ID, I get an error that Your identifiers were not found in the NSLDS and to contact Federal Student Aid. I did get married and changed my last name in 2012 (7 years after graduating) and updated it the next week with the Social Security Administration, banks, etc. I spoke with the Student Aid helpdotgov and was told that there was a discrepancy on the account preventing them from viewing or accessing the account. They said to call American Student Assistance with a number that is for ECMC. The school said to call ECSI.

I believe these are separate companies. My servicer for my loans is Nelnet. Has anyone had this happen? Can a Perkins loan be paid up to date and a partial amount defaulted? Is it not odd that it has never hit my credit or affected me until I tried to get my transcript? Unsure where to go here to know if the amount is even valid as I cannot access NSLDS to verify any of it. The amount is supposedly only $500. Will they let me just pay this in full? The school said I would need to reconsolidate which I obviously don’t want to do for such a small amount. Can this now appear on my credit after all of these years of not being there? Help!

 

Welcome! Sounds like a really frustrating situation. Help will be long shortly.

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Wow. Sounds like a nightmare. Do you by any chance live near your undergrad school? Did you try calling the company the school told you to? There should be a way to contact the ombudsmen. The fact that you can't get into the nslds or fsa sites send up red flags to me. It might be wise to also contact your states attorney. A few states are going after sallie Mae and navient for horrible service, and this sounds like Sallie Mae dropped the ball.

 

I don't think that it will show up on your reports after all this time. That's not to say that they won't tryto garnish your wages or take your tax return. It might have been 500 13 years ago, but there's no telling what it's ballooned to now. I'd also try to contact Sallie Mae and your current servicer for any and all records of your account.

 

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Thank you for the response! Sallie Mae was my private loans. They've been paid in full and the account reflects a zero balance. I didn't have any issues with them at all when paying those ones off.I do live about 3 hours from the school and will be going there next week for work anyway so I may stop in. The FA Office there said she could see the balance and that it was currently $542 or something like that so it may have only been a typo when I did the consolidation? She's the one who directed me to ECSI.

 

I agree it's super bizarre to not be able to access NLSDS. I thought they existed to keep a fair lines so borrowers can know who has their loans/balances/etc. Once I give my SSN and details to the chat rep he said he couldn't do anything and directed me to ASA and ended my chat. I have no problem paying the $542 if I owe it. I plan to pay the Nelnet loans off this year and expected to be debt free. I just don't want to be forced to reconsolidate into a new loan to add this amount on. Another forum I posted in said if the lender short paid the Perkins Loan when I consolidated I should be able to fight the default. They recommended the ombudsman as well so I probably will start there.

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Sounds like you have a good game plan. Stop into the school, and see if you can get records of your account. You might need them in the future. I would also talk to someone to see if they can recall the debt and pay them directly while your there. If not, call ECSI while still there. There should be absolutely no reason you have to reconsolidate if you're willing to pay the balance outright. Also, if you have to pay to ECSI, try to get something in writing thatyou no longer owe anything.

Was Sallie Mae who you did the consolidation through, that short changed the school? Try to get as much info as you can, in case they do try to put it on your report, or garnish you. It might also be a clerical error on the schools end, that you can get figured out while there.

As for nslds, regardless of you are in default, you should still be able to get on it. Have you tried chatting with someone else on the site? Or did they give you a number to contact ASA? That's part of the point of the site, to give you that info.

If you can't get this resolved while at the school, the ombudsmen would be your next step. Since you're hitting road blocks every step of the way, when you're trying to resolve this, you might look into contacting your states attorney General.

 

 

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Sorry. Just reread and saw where you did the consolidation with ACS. They should still have records of your consolidation. It's not unheard of for either them, or the school, to have made a clerical error when dealing with pay off amounts and consolidating. However, with such a small amount now being defaulted, without them coming after it for this long, and the roadblocks with nslds and fsa, sends numerous red flags. I wish you the best of luck getting this figured out, and please keep us posted.

 

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I definitely will keep you all updated after my visit to the school this week. The weirdest part to me still is that they aren't coming after me for it, nor have they ever! It's only been uncovered because the school is holding my transcript due to it. Part of me says to just not do grad school and ignore it since it's virtually invisible to everyone except the school. But then of course, there's the part of me who expected to be student loan free this year and if it's my debt, then I'll pay it. I guess we will see!

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I promised an update above. I haven't gotten too much further. I went to the College. The girl who handles Perkins loans was not present. They gave me a handout showing I had a balance of $275.89 that was short payed with a payoff of $542. They gave me the # to ECSI and told me to call them. I spoke with the Ombudsman and they were able to verify that yes, I'd defaulted on $275.89 of the Perkins and she said they likely made a mistake. She says that the Dept of Ed does not have anything on it, the school holds it. She recommended I follow the school and call ECSI and ask if they have the amount to pay it and then ask that they report back to the NSLDB. I called ECSI and shocker-they no longer have the loan. It's been sent off to a collection agency. Apparently not a very good one, as it's been 13 years and I only found out about it due to the transcript hold! At this point I'm nervous about calling a CA due to it not showing on any of my reports. I'm not sure if they have any ground to add it to it now, even if I just want to pay the amount in full.

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They can't legally put it on your reports now. You now have paperwork from the school that should show when it defaulted. If they do put it on your report, you'd have a solid case against the CA for re-aging the debt.
Call the CA, and request the payoff amount in writing. Then pay it. Did they say who the CA was?

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Update to my update if you're following along. I called ConServe today and they say I do not owe anything and my accounts were paid in full in 2008.

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Wow! What a circle they have you going in!

See if they will send you something in writing, so you can take it to the school and have your transcripts released.

If the school still fails to release your transcripts, get a lawyer. Maybe even the states attorney.

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