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gotyoback

HELP ME!! Student Loan on credit report and I never received the funds

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Can someone please advise me on what to do with my unique student Loan issue. I took out a loan around 2006 with Salle Mae to pay for school but later found out that I could not get the funds due to academic issues. I had to withdraw the previous semester due to a death in my immediate family. The school never dispersed the funds to my account and I did not sign a check (we had to sign the check back then before the school would disperse funds). For years I thought that the funds were returned to Salle Mae until one day I pulled my credit report and found out that the debt was still being reported. I then filed a dispute with the credit bureau and the debt came back as accurate so I contacted Salle Mae/Navient to verify the debt. They could not provide proof of the funds being dispersed and told me to contact the school. I have emailed and called the school and they have no record of the debt being dispersed on my ledger(because it wasn't!) and just stated that maybe it will show in an older system. As of today this debt has been sold to Navient and I am paying on debt that I do not owe! I have to fight and get this removed as I am not getting anywhere with the credit bureaus, Navient, or the University and no one can prove that I owe the debt. Navient did send me a promissory note that was signed but the funds were never dispersed. I couldnt even qualify for the funds at the time as I did not meet the academic requirements for dispersement. Please help me! 

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So this is from 2006 and you never received any late notices or notice of delinquency from Sallie Mae and no collection notices from Navient? And why on earth are you paying on debt that is clearly not valid, especially since it will only hurt your credit in the interim until you get this matter cleared?

 

I suspect that was has occurred is that you borrowed the money (see promissory note) and funds were disbursed to your school, but not subsequently to you.  Hence this is considered a valid debt by Sallie Mae/Navient as they did loan you the money.  This issue likely lies entirely with your school as they have your funds somewhere.  I will let the legal minds here a CB opine, but you did borrow the money and never followed through to ensure it was properly repaid by your school if you never received the funds, so this delinquency could be on you!

 

 

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Confirm and document the exact facts.  Contact the school and get the account information IN WRITING (Tell them to fax or email the information).

 

Contact the Department of Education Ombudsman

https://studentaid.ed.gov/sa/repay-loans/disputes/prepare

 

NOTE: The DOE Ombudsman helps with possible solutions when you have the exact step by step facts and documentation.

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