Did My Education Creditor Forget I Owe Money?
May 16, 2013 10:11 AM Subscribe
I went back to school to get some certificates. During the two years since I finished, I have never received even one invoice for my education debt. I have not been contacted in any way. I can't even figure out who I owe money to. Am I going to be in trouble?
I moved, but my former roommate assures me he gives me all the mail that arrives for me, and he has been on the lookout for this specific type of mail.
What's going on? Is this a problem? Am I obligated to keep hunting this down? Can I contest any compound interest and late fees on the grounds that they failed to let me make payments?
I moved, but my former roommate assures me he gives me all the mail that arrives for me, and he has been on the lookout for this specific type of mail.
What's going on? Is this a problem? Am I obligated to keep hunting this down? Can I contest any compound interest and late fees on the grounds that they failed to let me make payments?
Does any helpful information about your loan show up on your credit report?
posted by mbrubeck at 10:19 AM on May 16, 2013
posted by mbrubeck at 10:19 AM on May 16, 2013
I moved, but my former roommate assures me he gives me all the mail that arrives for me, and he has been on the lookout for this specific type of mail.
Did you forward your mail officially? The very clear and obvious way to check in on this is to call the places you received your certificates from and/or the people you got your loan from and plainly ask them.
Can I contest any compound interest and late fees on the grounds that they failed to let me make payments?
Doubtful. You are probably responsible for maintaining proper contact information with whoever it was that loaned you the money. The school got money from someone. They know who the money came from. They can tell you. You can follow up. Unless this is a lot less on-the-level than you are making it out to be, this is an easily solved problem and it appears that in the years since you've finished you haven't even made a phone call to check? Is something else going on here?
posted by jessamyn at 10:21 AM on May 16, 2013 [2 favorites]
Did you forward your mail officially? The very clear and obvious way to check in on this is to call the places you received your certificates from and/or the people you got your loan from and plainly ask them.
Can I contest any compound interest and late fees on the grounds that they failed to let me make payments?
Doubtful. You are probably responsible for maintaining proper contact information with whoever it was that loaned you the money. The school got money from someone. They know who the money came from. They can tell you. You can follow up. Unless this is a lot less on-the-level than you are making it out to be, this is an easily solved problem and it appears that in the years since you've finished you haven't even made a phone call to check? Is something else going on here?
posted by jessamyn at 10:21 AM on May 16, 2013 [2 favorites]
Do you have your original promissory note? You can contact that creditor, and if someone else is servicing the loan, they should be able to let you know who, and so on until you find the person that currently holds the debt.
Very unlikely that they will waive late fees, and certainly not interest (that would be a windfall to you if they did that). There is almost certainly something in the promissory note you signed obligating you to inform them of a change of address.
posted by payoto at 10:22 AM on May 16, 2013 [1 favorite]
Very unlikely that they will waive late fees, and certainly not interest (that would be a windfall to you if they did that). There is almost certainly something in the promissory note you signed obligating you to inform them of a change of address.
posted by payoto at 10:22 AM on May 16, 2013 [1 favorite]
It won't magically go away, so be ready for it. If you've got a steady income right now, start socking away "payments" so when they finally figure it out and ask you for money, you'll at least have some money set aside and it won't feel like punishment. You might be able to contest added fees (definitely not interest, but you asked about the compounding of the interest - I'd say almost certainly can't contest, but that 6% of 6% will probably be small relative to the threat of fees), but it will be a hassle, and being able to say "okay, so I'll give you 6 months of back payments if you remove those fees" is definitely a bargaining chip.
Do contact the school, and keep a copy of the email/letter you send, also any records of previous inquiries; that'll also be points in your favor, if you can demonstrate that you tried.
posted by aimedwander at 10:26 AM on May 16, 2013
Do contact the school, and keep a copy of the email/letter you send, also any records of previous inquiries; that'll also be points in your favor, if you can demonstrate that you tried.
posted by aimedwander at 10:26 AM on May 16, 2013
Depending on the type of loans, you may be able to find them through the National Student Loan Data System.
posted by epanalepsis at 10:27 AM on May 16, 2013
posted by epanalepsis at 10:27 AM on May 16, 2013
they failed to let me make payments
You can make payments without waiting for a letter from them, so in no sense have they failed to let you make payments.
posted by grouse at 10:27 AM on May 16, 2013 [1 favorite]
You can make payments without waiting for a letter from them, so in no sense have they failed to let you make payments.
posted by grouse at 10:27 AM on May 16, 2013 [1 favorite]
Response by poster: jessamyn: No, nothing else is going on here. Nobody ever picks up the phone at my school's financial aid office. My job objects to me missing days of work while I wait in the financial aid office for hours only to have them close before getting around to me, so I've been reluctant to repeat that. I'm surprised you think this is an easily-solved problem.
payoto: I'm sure I don't have a promissory note.
grouse: I have no idea who they are or where to send the money, or how much a payment should be.
posted by matt_arnold at 10:29 AM on May 16, 2013 [1 favorite]
payoto: I'm sure I don't have a promissory note.
grouse: I have no idea who they are or where to send the money, or how much a payment should be.
posted by matt_arnold at 10:29 AM on May 16, 2013 [1 favorite]
Pulling your credit report seems like the obvious solution. If you owe money and haven't paid on it in two years, there will certainly be evidence there.
posted by something something at 10:33 AM on May 16, 2013 [2 favorites]
posted by something something at 10:33 AM on May 16, 2013 [2 favorites]
I'm sure I don't have a promissory note.
Do you mean you've lost it, or you've never had one? If you didn't sign a promissory note, you don't have any debt.
posted by muddgirl at 10:35 AM on May 16, 2013 [2 favorites]
Do you mean you've lost it, or you've never had one? If you didn't sign a promissory note, you don't have any debt.
posted by muddgirl at 10:35 AM on May 16, 2013 [2 favorites]
Response by poster: More info: In February 2012 I finally hunted down which provider I had made an account with when I became a student. I signed in to that account on their website, and they have no record of any loans to me. That's why I have no idea who I owe money to.
Then I searched for myself on http://www.nslds.ed.gov/nslds_SA/ and it mentioned a different company who I owe the money to. So I tried logging on on that company's site. It told me my social security number was wrong.
mudgirl: I guess it must exist, but I don't know what it is or how to look for it.
posted by matt_arnold at 10:39 AM on May 16, 2013 [1 favorite]
Then I searched for myself on http://www.nslds.ed.gov/nslds_SA/ and it mentioned a different company who I owe the money to. So I tried logging on on that company's site. It told me my social security number was wrong.
mudgirl: I guess it must exist, but I don't know what it is or how to look for it.
posted by matt_arnold at 10:39 AM on May 16, 2013 [1 favorite]
Unfortunately, this is your problem to fix. You can think of the letters they send as a courtesy, because generally you are (legally) required to pay regardless of how much info they give you.
Definitely pull your credit report (you can do that for free from www.annualcreditreport.com), which will likely have more information. And you're going to have to get more aggressive with the financial aid office. Call every day and leave a message. Write letters. Escalate higher at the school to get someone to talk to you. If you are currently accruing interest and penalties you will not be able to get rid of them just because they weren't sending you things -- maybe they had your address wrong, maybe their system screwed up, maybe you missed the one letter 18 months ago that would have told you what to do, maybe a bunch of other things, but if you owe the money, as far as the law is concerned all of that is likely irrelevant.
posted by brainmouse at 10:39 AM on May 16, 2013 [5 favorites]
Definitely pull your credit report (you can do that for free from www.annualcreditreport.com), which will likely have more information. And you're going to have to get more aggressive with the financial aid office. Call every day and leave a message. Write letters. Escalate higher at the school to get someone to talk to you. If you are currently accruing interest and penalties you will not be able to get rid of them just because they weren't sending you things -- maybe they had your address wrong, maybe their system screwed up, maybe you missed the one letter 18 months ago that would have told you what to do, maybe a bunch of other things, but if you owe the money, as far as the law is concerned all of that is likely irrelevant.
posted by brainmouse at 10:39 AM on May 16, 2013 [5 favorites]
And call that company that the NSLDS had listed and ask them for help.
posted by brainmouse at 10:40 AM on May 16, 2013 [2 favorites]
posted by brainmouse at 10:40 AM on May 16, 2013 [2 favorites]
brainmouse has it. Yes, call the company. Sometimes the smaller servicers' websites are buggy. Sometimes they have different portals for different types of loans and it isn't obvious that you're trying to log into the wrong one. Give them a call and explain the situation and ask if they can help you research what happened to your loan.
Yes, escalate at your school. Call the bursar, dean of students, whoever will answer the phone. Send a certified letter if you have to. This is a PITA and you may have to take a few hours off work to straighten it all out, but you should only have to do it once.
Definitely check your credit reports. You are entitled to one from each bureau each year for free. You can get them right now and be reviewing them in a few minutes.
posted by payoto at 10:45 AM on May 16, 2013
Yes, escalate at your school. Call the bursar, dean of students, whoever will answer the phone. Send a certified letter if you have to. This is a PITA and you may have to take a few hours off work to straighten it all out, but you should only have to do it once.
Definitely check your credit reports. You are entitled to one from each bureau each year for free. You can get them right now and be reviewing them in a few minutes.
posted by payoto at 10:45 AM on May 16, 2013
The one thing I can promise you is that this debt will never, ever go away. Eventually it will be turned over to the creditor of last resort, the US Department of Education, who will track you down and extract this money from you one way or the other. The lender isn't responsible for keeping on top of you to pay; you are responsible for knowing who you owe money to and paying in a timely fashion.
posted by 1adam12 at 10:48 AM on May 16, 2013
posted by 1adam12 at 10:48 AM on May 16, 2013
I went through a similar thing where I ended up going to school, dropping out, and forgetting about the whole "that was expensive and I took out loans" thing. (In my defense, I was 18, the ideal age for signing away your financial future) I went several years without being contacted by my school's financial aid department. I should note this is a major state school, so it's not some one-person department.
Then one day, a collections agency contacted me and I made arrangements with them and paid it back slowly over several years. Once my debt was down to under $2000 or so (I forget the exact figure), they said they were required to turn my loan back to the original party, and the new party would contact me about paying off the rest. Never heard anything until about 4 months later, when I got a letter notifying me that my wages would be garnished starting in 30 days for failure to make payments...so I had 25 percent of my paychecks taken until the loan was paid off. This pretty much destroyed my credit score too.
Obviously this is just an anecdote, but creditors do not forgive and they do not forget. Hell, the longer you go without paying them back, the more interest they earn. I guess I don't have advice beyond "figure out who is supposed to take your money ASAP"...
posted by antonymous at 10:49 AM on May 16, 2013 [1 favorite]
Then one day, a collections agency contacted me and I made arrangements with them and paid it back slowly over several years. Once my debt was down to under $2000 or so (I forget the exact figure), they said they were required to turn my loan back to the original party, and the new party would contact me about paying off the rest. Never heard anything until about 4 months later, when I got a letter notifying me that my wages would be garnished starting in 30 days for failure to make payments...so I had 25 percent of my paychecks taken until the loan was paid off. This pretty much destroyed my credit score too.
Obviously this is just an anecdote, but creditors do not forgive and they do not forget. Hell, the longer you go without paying them back, the more interest they earn. I guess I don't have advice beyond "figure out who is supposed to take your money ASAP"...
posted by antonymous at 10:49 AM on May 16, 2013 [1 favorite]
My job objects to me missing days of work while I wait in the financial aid office for hours only to have them close before getting around to me, so I've been reluctant to repeat that. I'm surprised you think this is an easily-solved problem.
The solution here is to go up the ladder--who's listed as the director of finaid? Call them up, and in your nicest telemarketer impression, ask if you can get an appointment.
Alternatively, go laterally: many colleges have their financial aid office separate from the bursars/cashiers; the latter should be able to tell you how much you owed and who paid it.
The reason why people here are kind of at a loss is because what you describe is, quite frankly, weird--unless you're paying in full and up front, getting money for tuition is a long, drawn-out, involved process. There are classes (ones I did quite well in, even) that I couldn't give you as many details about as the financial aid process, because it took so much time and energy, and that's before I've even paid back a cent of it.
posted by kagredon at 10:52 AM on May 16, 2013
The solution here is to go up the ladder--who's listed as the director of finaid? Call them up, and in your nicest telemarketer impression, ask if you can get an appointment.
Alternatively, go laterally: many colleges have their financial aid office separate from the bursars/cashiers; the latter should be able to tell you how much you owed and who paid it.
The reason why people here are kind of at a loss is because what you describe is, quite frankly, weird--unless you're paying in full and up front, getting money for tuition is a long, drawn-out, involved process. There are classes (ones I did quite well in, even) that I couldn't give you as many details about as the financial aid process, because it took so much time and energy, and that's before I've even paid back a cent of it.
posted by kagredon at 10:52 AM on May 16, 2013
Response by poster: I also looked at my credit report. I'm looking at it again right now. My education isn't on there. Granted, it's from a year ago, so I should do that again.
I see that the financial aid office now has a new person in charge of helping people in my section of the alphabet. I've put in a call and sent an email, and will continue to pursue this.
posted by matt_arnold at 10:57 AM on May 16, 2013
I see that the financial aid office now has a new person in charge of helping people in my section of the alphabet. I've put in a call and sent an email, and will continue to pursue this.
posted by matt_arnold at 10:57 AM on May 16, 2013
Did you have any contact with a secretary or someone similar in your program? I know that if a former student - especially one who attended while I was in the job - called me up and explained this problem, I would do my best to work back-channel communications to get them to the correct person in the financial aid office.
Also, start sending emails. Get a name and an email for someone in the financial aid office and start emailing them about this. In a worst case scenario, call the Dean's office and explain the situation to the secretary. The financial aid office may be opaque and intimidating, but I guarantee that there are internal lines of communication.
I know this seems incredibly frustrating. It's precisely the kind of thing that drives me up the wall.
posted by Frowner at 10:58 AM on May 16, 2013
Also, start sending emails. Get a name and an email for someone in the financial aid office and start emailing them about this. In a worst case scenario, call the Dean's office and explain the situation to the secretary. The financial aid office may be opaque and intimidating, but I guarantee that there are internal lines of communication.
I know this seems incredibly frustrating. It's precisely the kind of thing that drives me up the wall.
posted by Frowner at 10:58 AM on May 16, 2013
Though it's not immediately gratifying, sending letters can help get attention. At least with regard to the financial aid office. Also, if you have trouble getting anywhere with the NSLDS or servicer because of some data mismatch, the Department of Education's student loan ombudspersons might be able to help you out in terms of determining what your status is and which entity you need to communicate with.
http://studentaid.ed.gov/repay-loans/disputes/prepare
Just call them and explain you're having trouble completing the self help checklist because it seems the servicer's information doesn't match NSLDS and your school is unresponsive.
posted by snuffleupagus at 10:59 AM on May 16, 2013
http://studentaid.ed.gov/repay-loans/disputes/prepare
Just call them and explain you're having trouble completing the self help checklist because it seems the servicer's information doesn't match NSLDS and your school is unresponsive.
posted by snuffleupagus at 10:59 AM on May 16, 2013
I would not bother with your school, if these were loans you were able to find in the national database. Instead, start calling the company they listed.
I've been out of school for about 15 years now, and my loans have been sold a number of times. Each time, there's a bit of a blip with me getting logged in to the account on the new site.
I'll bet that your loans have been sold and someone mis-recorded your SSN and it's not going to take that much to figure it out, once you track down that company that currently has a dog in the fight. Good luck!
posted by pixiecrinkle at 11:01 AM on May 16, 2013 [1 favorite]
I've been out of school for about 15 years now, and my loans have been sold a number of times. Each time, there's a bit of a blip with me getting logged in to the account on the new site.
I'll bet that your loans have been sold and someone mis-recorded your SSN and it's not going to take that much to figure it out, once you track down that company that currently has a dog in the fight. Good luck!
posted by pixiecrinkle at 11:01 AM on May 16, 2013 [1 favorite]
Response by poster: Some of you such as jessamyn and kagredon are expressing some doubts about what I'm saying. So that you will feel better about the value of your help to me, I will tell you this.
You know the saying, "my better half"? Sometimes the way they are better, is in paperwork and finances and organization. So you focus on your own strengths and contributions, and you let your better half make all the financial decisions, and deal with all taxes, insurance, loans, and paying bills. And now, you no longer have to deal with the overwhelming sensation of panic that accompanies them. And this is perfect.
But then, sometimes your better half doesn't want to do that any more, and is still a very good friend who would never hurt you, but who definitely stops being your better half. And sometimes, your former better half is still the only one who has all that paperwork which she gave you to sign, like a "promissory note" or whatever it's called. Sometimes your former better half is still the only one who has any records or knows what was actually done on your behalf, or when, or with whom, or why. And now that overwhelming sensation of panic is back, but you're more experienced now, and are better at pulling it together.
This is a larger issue; however, I already understand the depth of my folly in that area, and therefore this is not an Ask Metafilter question about that. I hope this settles that matter.
posted by matt_arnold at 11:34 AM on May 16, 2013 [1 favorite]
You know the saying, "my better half"? Sometimes the way they are better, is in paperwork and finances and organization. So you focus on your own strengths and contributions, and you let your better half make all the financial decisions, and deal with all taxes, insurance, loans, and paying bills. And now, you no longer have to deal with the overwhelming sensation of panic that accompanies them. And this is perfect.
But then, sometimes your better half doesn't want to do that any more, and is still a very good friend who would never hurt you, but who definitely stops being your better half. And sometimes, your former better half is still the only one who has all that paperwork which she gave you to sign, like a "promissory note" or whatever it's called. Sometimes your former better half is still the only one who has any records or knows what was actually done on your behalf, or when, or with whom, or why. And now that overwhelming sensation of panic is back, but you're more experienced now, and are better at pulling it together.
This is a larger issue; however, I already understand the depth of my folly in that area, and therefore this is not an Ask Metafilter question about that. I hope this settles that matter.
posted by matt_arnold at 11:34 AM on May 16, 2013 [1 favorite]
Call the listed company. I'm guessing there's been some mixup with your social security number. This happened to me, and even after I got it fixed, it still popped up as a problem when it came to logging in to online servicing systems for a couple of years.
If nothing shows up on your credit report in terms of missed/late payments on this loan, but the loan itself is still listed, then I'm guessing the lender still thinks you're in school and that you're still covered by the grace period. In which case, you should contact the lender and let them know that you are no longer in school and that you'd like to start making payments. You don't want the interest to keep accruing when you could be making payments.
Also, did anyone cosign for this loan? If so, they may have received something about late/missing payments.
posted by yasaman at 12:26 PM on May 16, 2013
If nothing shows up on your credit report in terms of missed/late payments on this loan, but the loan itself is still listed, then I'm guessing the lender still thinks you're in school and that you're still covered by the grace period. In which case, you should contact the lender and let them know that you are no longer in school and that you'd like to start making payments. You don't want the interest to keep accruing when you could be making payments.
Also, did anyone cosign for this loan? If so, they may have received something about late/missing payments.
posted by yasaman at 12:26 PM on May 16, 2013
Response by poster: OK, I just got my new credit report for this year, and now it's on there. And during that year, it defaulted.
I called the number. It turns out they had a mailing address for me which was so obsolete that, at the time I took out my loan, I had already lived in two other residences. I don't know how they could have got that address. Anyway, I updated them.
I was referred to the Department of Education's Default Resolution Group and gave them my updated contact info as well. This person sent me to www.myeddebt.com to download a form to state my financial situation and start the process of determining a payment plan.
No one threatened or browbeat me in either phone call!
posted by matt_arnold at 12:42 PM on May 16, 2013 [4 favorites]
I called the number. It turns out they had a mailing address for me which was so obsolete that, at the time I took out my loan, I had already lived in two other residences. I don't know how they could have got that address. Anyway, I updated them.
I was referred to the Department of Education's Default Resolution Group and gave them my updated contact info as well. This person sent me to www.myeddebt.com to download a form to state my financial situation and start the process of determining a payment plan.
No one threatened or browbeat me in either phone call!
posted by matt_arnold at 12:42 PM on May 16, 2013 [4 favorites]
It's good you were able to follow up satisfactorily, and extra good that no one was mean to you. I had a similar experience and can say that paying off that loan in the end made me feel terrific.
To answer your original question ("Am I going to be in trouble?") the default will stay on your credit report and will probably negatively affect your ability to use credit in the future. Not indefinitely, but be prepared for it to count against you for credit card applications, car loans, and other such things. But IMO that is a better outcome than feeling ashamed about not dealing with things.
posted by epanalepsis at 12:54 PM on May 16, 2013 [3 favorites]
To answer your original question ("Am I going to be in trouble?") the default will stay on your credit report and will probably negatively affect your ability to use credit in the future. Not indefinitely, but be prepared for it to count against you for credit card applications, car loans, and other such things. But IMO that is a better outcome than feeling ashamed about not dealing with things.
posted by epanalepsis at 12:54 PM on May 16, 2013 [3 favorites]
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posted by easily confused at 10:18 AM on May 16, 2013