Help me beat my head against the wall of beauroucracy more efficiently
October 3, 2013 1:15 PM Subscribe
My student loan company lost a very large payment. Nine months ago. They don´t seem too concerned about finding it and I am at my wit´s end. Help.
The payment was via an Americorps voucher-- which was a $5500 check written from AmeriCorps to the Dept of Education to be applied to my Direct Student loans. The payment went through in January on Americorp´s end, I have called them and gotten a copy of the check they sent and the check was cashed by Direct Loans.
Around the time that this payment was lost, my loans were transferred to a smaller loan company (GSMR). Long story short, I have been calling GSMR every few weeks and still nothing. First they needed a copy of the check, which I got from AmeriCorps and sent to them. Then they told me 60-90 days to hear back from Direct Loans. After 90 days I called them and they told me that they couldn´t tell me anything and they couldn´t give me any timeframe for being able to.
It´s now been 10 months. They are collecting interest, and I´ve been told that this will be refunded after the payment is found.
I have a couple questions:
1. Any ideas on how best to deal with this situation?
2. Should I trust them that the interest will be refunded? Should I try to get it in writing or something?
3. This money is taxable as income. I assume I´ll still owe taxes on it even if I haven´t actually seen it post to my account by January, right?
The payment was via an Americorps voucher-- which was a $5500 check written from AmeriCorps to the Dept of Education to be applied to my Direct Student loans. The payment went through in January on Americorp´s end, I have called them and gotten a copy of the check they sent and the check was cashed by Direct Loans.
Around the time that this payment was lost, my loans were transferred to a smaller loan company (GSMR). Long story short, I have been calling GSMR every few weeks and still nothing. First they needed a copy of the check, which I got from AmeriCorps and sent to them. Then they told me 60-90 days to hear back from Direct Loans. After 90 days I called them and they told me that they couldn´t tell me anything and they couldn´t give me any timeframe for being able to.
It´s now been 10 months. They are collecting interest, and I´ve been told that this will be refunded after the payment is found.
I have a couple questions:
1. Any ideas on how best to deal with this situation?
2. Should I trust them that the interest will be refunded? Should I try to get it in writing or something?
3. This money is taxable as income. I assume I´ll still owe taxes on it even if I haven´t actually seen it post to my account by January, right?
Other people can probably give you more specific advice, but if you're trying to cut through the bureaucracy regarding a federal education loan one option might be to contact your Congressperson for support.
I am aware of the irony given the current dysfunction in Congress but unless you have a really useless congressperson they should have a constituent affairs office or similar that might be able to at least poke the higher-ups to do something. Kruger5's advice also holds. If the GSMR you mention is the New Hampshire one it looks like they have a twitter/FB presence, you might be able to prod them through those public avenues as well.
posted by Wretch729 at 1:23 PM on October 3, 2013 [4 favorites]
I am aware of the irony given the current dysfunction in Congress but unless you have a really useless congressperson they should have a constituent affairs office or similar that might be able to at least poke the higher-ups to do something. Kruger5's advice also holds. If the GSMR you mention is the New Hampshire one it looks like they have a twitter/FB presence, you might be able to prod them through those public avenues as well.
posted by Wretch729 at 1:23 PM on October 3, 2013 [4 favorites]
When you say "Direct loans", are you working with the servicer at 1.800.848.0979? Persistence is a requirement when you are working with them, so you may need to up your call frequency from every few weeks to every day. Also the call center has managers like everyone else, so you could always ask them - although I have no idea what the staffing situation is with the shutdown on.
Does the check copy you have show the Direct loans endorsement? Or was it one from Americorps without the endorsement?
2. Should I trust them that the interest will be refunded? Should I try to get it in writing or something?
I have heard of several scenarios where this happens. Writing never hurts, I suppose, but my guess is they will couch it in language that will make the refund contingent on the check being cashed on some certain date or something.
3. This money is taxable as income. I assume I´ll still owe taxes on it even if I haven´t actually seen it post to my account by January, right?
Americorps will send you a tax document for the income, so you will still need to report it.
posted by Think_Long at 1:24 PM on October 3, 2013
Does the check copy you have show the Direct loans endorsement? Or was it one from Americorps without the endorsement?
2. Should I trust them that the interest will be refunded? Should I try to get it in writing or something?
I have heard of several scenarios where this happens. Writing never hurts, I suppose, but my guess is they will couch it in language that will make the refund contingent on the check being cashed on some certain date or something.
3. This money is taxable as income. I assume I´ll still owe taxes on it even if I haven´t actually seen it post to my account by January, right?
Americorps will send you a tax document for the income, so you will still need to report it.
posted by Think_Long at 1:24 PM on October 3, 2013
Most businesses have a small group of people who handle "presidential complaints." Basically these are extraordinary customer service folks. They keep their cool and can help.
Call each loan company and ask to speak to someone "Joe Blough's office" then tell that person, I've been trying to deal with a situation for 10 months, I've gotten nowhere, and I need some juice, is there someone there who can help me?"
I did this with Comcast and with AT&T and in both cases things were resolved quickly.
posted by Ruthless Bunny at 1:25 PM on October 3, 2013
Call each loan company and ask to speak to someone "Joe Blough's office" then tell that person, I've been trying to deal with a situation for 10 months, I've gotten nowhere, and I need some juice, is there someone there who can help me?"
I did this with Comcast and with AT&T and in both cases things were resolved quickly.
posted by Ruthless Bunny at 1:25 PM on October 3, 2013
Response by poster: I´m not actually dealing with Direct Loans-- I think they are the problem, they are the ones who lost the money and have the money and GSMR is waiting to hear back from them, but I´m not really sure how to communicate with them anymore since I don´t technically have an account there- my loans were moved in Jan/Feb.
posted by geegollygosh at 1:27 PM on October 3, 2013
posted by geegollygosh at 1:27 PM on October 3, 2013
My key opening phrase when I'm on the phone with a customer service rep is this:
Do that right on up the chain until you get to somebody with some power to actually fix this. If you are still unable to get anywhere after a forserious phone call, write that letter. Good luck.
p.s. I am very good at writing these persuasive letters, so if you'd like feedback on a draft or something, feel free to memail.
posted by phunniemee at 1:31 PM on October 3, 2013 [13 favorites]
Hi, I have a situation that I have been trying to get resolved for a really long time. I am very upset right now, and I know it's not your fault personally, so I really don't want to be very upset at you. I would really appreciate if you could transfer me to a supervisor immediately. Thank you.Deliver this in a calm, clear voice. Be kind but firm. This almost always works for me. In the very rare case that they balk, just keep repeating, "I know this is not something you will be able to help me with, so I will need you to transfer me to a supervisor now."
Do that right on up the chain until you get to somebody with some power to actually fix this. If you are still unable to get anywhere after a forserious phone call, write that letter. Good luck.
p.s. I am very good at writing these persuasive letters, so if you'd like feedback on a draft or something, feel free to memail.
posted by phunniemee at 1:31 PM on October 3, 2013 [13 favorites]
So it sounds like GSMR told you that they would troubleshoot it, and now you're just supposed to sit tight? Did they give you a ticket number or any type of case # you can use to reference your file? That's a good way to get a customer service bureaucracy to realize how much they are jerking you around, if they can see that your case was created many months ago.
There is a little you could do to investigate this on your own behalf. First, log on the this government website:
www.nslds.ed.gov
Take a look at what they show as your loan balance. Does it reflect the Americorps payment? If yes: Call GSMR, tell them their records don't match with NSLDS. If no: I would call direct loans straight at that number I gave you and ask them about that payment - give them the deposit date, check #, etc. - and get confirmation that the payment was received by them. Then ask them about the transfer to GSMR, how much was transferred and on what date. Ask them why NSLDS doesn't reflect that payment.
It's hard to determine where the payment chain is breaking down: either Direct Loans never posted the payment in the first place, or they did but it didn't stick when they transferred your loans. Hopefully by calling that number you'll be able to do a bit of investigation on your end before going back to GSMR.
posted by Think_Long at 1:39 PM on October 3, 2013 [1 favorite]
There is a little you could do to investigate this on your own behalf. First, log on the this government website:
www.nslds.ed.gov
Take a look at what they show as your loan balance. Does it reflect the Americorps payment? If yes: Call GSMR, tell them their records don't match with NSLDS. If no: I would call direct loans straight at that number I gave you and ask them about that payment - give them the deposit date, check #, etc. - and get confirmation that the payment was received by them. Then ask them about the transfer to GSMR, how much was transferred and on what date. Ask them why NSLDS doesn't reflect that payment.
It's hard to determine where the payment chain is breaking down: either Direct Loans never posted the payment in the first place, or they did but it didn't stick when they transferred your loans. Hopefully by calling that number you'll be able to do a bit of investigation on your end before going back to GSMR.
posted by Think_Long at 1:39 PM on October 3, 2013 [1 favorite]
My mom went through this with Sallie Mae losing hundreds of dollars of previous months of my sister's student loan payment. She eventually had to cry on the phone multiple times before anyone would take her seriously and get something done - miraculously they "found" the payments after she cried at enough supervisors.
She didn't MEAN to cry or anything, she wasn't being manipulative, but it was very distressing to her to basically have close to $2000 gone. So maybe crying will help - perhaps it only works if you are clearly someone's mom though.
I like phunniemee's script.
posted by chainsofreedom at 1:57 PM on October 3, 2013
She didn't MEAN to cry or anything, she wasn't being manipulative, but it was very distressing to her to basically have close to $2000 gone. So maybe crying will help - perhaps it only works if you are clearly someone's mom though.
I like phunniemee's script.
posted by chainsofreedom at 1:57 PM on October 3, 2013
Response by poster: Thanks for that link, Think_Long. It does not show as paid on the nslds site. I´ll try calling Direct Loans, though I assume I won´t be able to get ahold of them at the moment.
posted by geegollygosh at 1:59 PM on October 3, 2013
posted by geegollygosh at 1:59 PM on October 3, 2013
The Consumer Financial Protection Bureau might be a good resource for helping get this straightened out.
Heather Jarvis, who has created a cottage industry for helping people understand and navigate repayment of student loans, usually has good clear advice, too.
posted by crush-onastick at 2:10 PM on October 3, 2013 [1 favorite]
Heather Jarvis, who has created a cottage industry for helping people understand and navigate repayment of student loans, usually has good clear advice, too.
posted by crush-onastick at 2:10 PM on October 3, 2013 [1 favorite]
I work on student loan policy (and in particular on student loan servicing, which is your probelm here) and would love to talk to you about this offline if you want.
In the mean time, do you have any friends or relatives who are lawyers who might be able to write a letter for you? Or maybe the AmeriCorps general counsel? You may even try your local legal aid office. Generally they're pretty booked up, but your case may appeal to them.
As others have noted, contacting your Congressperson or the CFPB (which is still open!!) are good routes. CFPB is just starting to ramp up its work on student loan servicing.
Unfortunately the Dept of Education is largely shut down now, so it may take a while to sort out.
posted by yarly at 5:04 PM on October 3, 2013 [1 favorite]
In the mean time, do you have any friends or relatives who are lawyers who might be able to write a letter for you? Or maybe the AmeriCorps general counsel? You may even try your local legal aid office. Generally they're pretty booked up, but your case may appeal to them.
As others have noted, contacting your Congressperson or the CFPB (which is still open!!) are good routes. CFPB is just starting to ramp up its work on student loan servicing.
Unfortunately the Dept of Education is largely shut down now, so it may take a while to sort out.
posted by yarly at 5:04 PM on October 3, 2013 [1 favorite]
I had an issue where [due to a long, complicated backstory] my student loan company managed to lose over $8000 of payments and were also threatening to tank my credit for being "delinquent" due to the loss. I got no traction from them at all until I emailed my undergraduate university's financial aid department director and told them what was going on and that I was very upset and would like them to assist since they had a hand in setting up these loans with this provider.
A day later and I was receiving calls from two different upper-level staff members of the loan company who were profusely apologetic and who worked over the next couple days to fix the situation. It was all taken care of within a week of contacting my undergrad university.
I also had reported them to the BBB, but that didn't make such an impact. Doesn't hurt to do that as well, though.
posted by vegartanipla at 6:00 PM on October 3, 2013 [1 favorite]
A day later and I was receiving calls from two different upper-level staff members of the loan company who were profusely apologetic and who worked over the next couple days to fix the situation. It was all taken care of within a week of contacting my undergrad university.
I also had reported them to the BBB, but that didn't make such an impact. Doesn't hurt to do that as well, though.
posted by vegartanipla at 6:00 PM on October 3, 2013 [1 favorite]
Your state has a Banking regulatory body, and possibly Consumer Affairs. They'll be on the website, probably as part of the Attorney General's Office. Call them and ask for help.
posted by theora55 at 11:08 PM on October 3, 2013
posted by theora55 at 11:08 PM on October 3, 2013
This thread is closed to new comments.
Get the names and email addresses of the loan company's top 3 executives and let them know what the hell is going on, and the immediate resolution you seek. Be succinct and professional. Include your phone number.
posted by Kruger5 at 1:19 PM on October 3, 2013 [4 favorites]