Welcome guest, please Login or Register

   

Direct Loan Error Not Recognized by Fedloan Servicing…Is This Legal?

Rank
Rank

Total Posts: 4

Joined 2014-10-08

PM

 

another victim of this same scam here, would be grateful to be notified of progress on any/all fronts, & if (in Oct 2017) it turns out we are ruled ineligible, interested in class action suit (I presume the case would not be “ripe” until then).

Rank

Total Posts: 2

Joined 2014-09-28

PM

 

I’m certainly not an attorney, but it looks like you’ve gotten some good advice on here.  As you many know, this industry has had it’s share of ethics issues.

Total Posts: 1

Joined 2014-11-20

PM

 

I am in the same exact boat. Back when I consolidated through Direct Loans in 2007, they assured me that being on the Standard Repayment plan (30 year plan) would qualify for Public Loan Forgiveness as long as I made 120 monthly payments. I asked if I needed to fill out any paperwork and they said no, I will at the end of my 120 payments. About 2-3 years ago, Direct Loans becomes non-existent and my loans are transferred to Mohela. My teacher friends also participating in the program inform me they are under the income contingent plan and that is the only one that qualifies. I panic and this time call Mohela to verify I’m on the right payment plan, and again reassure me that the Standard Repayment plan would work. Today, I called to ask about forms I need to fill out to verify my employment and they tell me I’m not eligible under my payment plan. I have to start all over. Instead of my loans being forgiven in 2017, it will be 2024. I will be paying over $50,000 extra because of not one person, but two that advised me incorrectly. I see that several of us are in the same boat. I hope that some sort of lawsuit comes out of this. Unfortunately I don’t have any written documentation, just phone conversations.

Rank
Rank
Rank

Total Posts: 29

Joined 2014-10-06

PM

 

My original two payments after consolidation were on a standard repayment plan that wasn’t 10 years. After realizing they wouldn’t be eligible, I switched to IBR.

My two cents on this thread would be to file complaints through all applicable avenues - Dept of Ed ombudsman (as heather suggested), Consumer Financial Protection Bureau, other people at the Dept of Ed., senators/reps, any non-profit orgs that deal with student loan issues, etc.  And if you don’t hear back, write again. Like many changes that large orgs ultimately make, it requires extensive feedback and input from those affected. (Shouldn’t have to be this way, but burden seems to unfortunately often be on the consumer/student.)