What if they don't want my money?
March 19, 2011 9:47 AM Subscribe
I have a public student loan that I can see on my account management page but that no one seems to acknowledge that I owe or will take any money for. I know I borrowed the money; what should I do about this loan?
This is opposite the usual question on student loans. All of my loans are through the regular public system; none are from private lenders.
When going through college, I (unwisely) went through a few different lenders. At one point, I filed bankruptcy (not to deal with the loans), and one of the loans with a rather sizable (approximately $10,000) balance was transferred to one of the Department of Education's bankruptcy servicing centers and shows on their account management web page. The National Student Loan Data System shows the loan as well and has it being handled by the same servicer.
I've called that servicer to see why I haven't been asked to pay this loan after two years of being out of bankruptcy. Their response was that they are waiting on some funds to be transferred from another lender and to just let it be. Nothing has happened with the loan since. After tiring of making 5 separate student loan payments, I decided to consolidate with the Direct Loans program and the wayward loan is listed on my consolidation application. The summary statement just arrived in the mail today and that wayward loan is not present on the list of loans they claim to be paying off, nor is it listed under the "loans that will not be included" section (the latter section is blank).
What should I do about this loan? The current servicer won't take money for it (I asked about making payments; they said I can't), it's an unsubsidized loan so interest is adding up, and even the Direct Loan people couldn't get them to admit that the loan exists. I'm considering sending off a certified letter to the servicer, but thought I'd check with the hive mind here first.
This is opposite the usual question on student loans. All of my loans are through the regular public system; none are from private lenders.
When going through college, I (unwisely) went through a few different lenders. At one point, I filed bankruptcy (not to deal with the loans), and one of the loans with a rather sizable (approximately $10,000) balance was transferred to one of the Department of Education's bankruptcy servicing centers and shows on their account management web page. The National Student Loan Data System shows the loan as well and has it being handled by the same servicer.
I've called that servicer to see why I haven't been asked to pay this loan after two years of being out of bankruptcy. Their response was that they are waiting on some funds to be transferred from another lender and to just let it be. Nothing has happened with the loan since. After tiring of making 5 separate student loan payments, I decided to consolidate with the Direct Loans program and the wayward loan is listed on my consolidation application. The summary statement just arrived in the mail today and that wayward loan is not present on the list of loans they claim to be paying off, nor is it listed under the "loans that will not be included" section (the latter section is blank).
What should I do about this loan? The current servicer won't take money for it (I asked about making payments; they said I can't), it's an unsubsidized loan so interest is adding up, and even the Direct Loan people couldn't get them to admit that the loan exists. I'm considering sending off a certified letter to the servicer, but thought I'd check with the hive mind here first.
When I was consolidating, I think I read that you can't consolidate deliquent or defaulted debt.
Perhaps you should pull up a credit report from one of the agencies and see if you can find some contact information on the loan there?
posted by pwnguin at 10:17 AM on March 19, 2011
Perhaps you should pull up a credit report from one of the agencies and see if you can find some contact information on the loan there?
posted by pwnguin at 10:17 AM on March 19, 2011
agreed it's a good idea to contact the lender directly via info that should be in your credit report.
Not exactly to your question, but I'd be wary of doing a debt consolidation. Make sure you're not paying a lot for the priviledge and that it's not just a way to avoid or postpone dealing with your debt. The sooner you pay the things off, the sooner you can get on with your life.
posted by randomkeystrike at 11:16 AM on March 19, 2011
Not exactly to your question, but I'd be wary of doing a debt consolidation. Make sure you're not paying a lot for the priviledge and that it's not just a way to avoid or postpone dealing with your debt. The sooner you pay the things off, the sooner you can get on with your life.
posted by randomkeystrike at 11:16 AM on March 19, 2011
Response by poster: To clarify: The lender for the AWOL loan is known and I've spoken to them. They said that I couldn't make payments and that the loan is "in the process of being transferred." A default isn't shown on my credit report (actually, I don't think the loan itself is listed at all but I'd have to look again).
posted by fireoyster at 12:19 PM on March 19, 2011
posted by fireoyster at 12:19 PM on March 19, 2011
Sounds like you need more information on this 'transfer'. Who started it, when was it supposed to be completed, etc.? Falling through the cracks sucks, but being aware of what's going on is the first step of the process :)
posted by chrisinseoul at 11:30 AM on March 20, 2011
posted by chrisinseoul at 11:30 AM on March 20, 2011
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posted by SMPA at 10:10 AM on March 19, 2011