The following are testimonials submitted to this site. To tell your story, please go here.
I think my original loan amount was about $4000 in 1987 or thereabouts. Since I defaulted the company has taken one tax refund of about $3500, two refunds of about $500 and they garnish my wages. Yet, they never send a receipt telling me all I've paid and where it went. They say I still owe about $2000. A neverending story. Not to mention the times when I was set up on payments and they sold it to another lender and I had to start over again trying to figure out who exactly I owe.
The original amount I borrowed
for school was $14000.00 With the
penalties, fees and interest accumulated,
they say I now owe over $48,000.00.
I will readily admit that my loans went
into default due to my inattention, but
I was dealing with some extraordinary
circumstances including the death of a
child and years of abuse by a husband
I finally left but who continued to stalk
me. I realize that is not the Dept.
of Education's problem; I'm offering
it as an explanation, not an excuse.
I went to Career Beauty
College on ST.charles rock rd. , took
out approx, 6,000 loan and did gat a pell
grant. Went to school approx. 6mo.,then
one day the school was pysically
closed down (doors locked with chains
/locks)I did not get to graduate. I was
devestated and all I could do was
cont. working hard to care for my daughter
by myself( who else is gointo pay the
bills?)I started to investigate into it,when
my daughter wsa older . I found out that
HAHN the owner of the school had other
law suits at Clayton court house(public
record). And the school was not even certified
by the cosmotology board and should have
been disqualified for any pells or loans
at the time of my attending that school.
After all this investigating and writing
my congress and the board of ED.they have
still taken any income tax refunds I was
due.So I did start paying on the loans
when they said on paper it looked as the
school didnt close for a year after it
physically closed d!
I enrolled in Kaplan Online program under the impression from the advertisment that it was a program for working adults due the the flexibal schedual. However it has not been a positive experience and I am having problems with the student services and admissions depts. My first day of class was Feb 28, 2005 I was enrolled in two classes that was a total of 10 cr hrs. I didn't even have books for these two classes. This was a full time schedual and I was awarded 2 loans one was subsidized and the other was unsubsidized by Kaplans financial aid dept. The first award letter that I was given had errors and under the belief that I would not have to pay anything out of pocket. I accepted the award. That turned out to be incorrect and before I was to sign and fax back the papers the financial aid dept they called and said the letter was not correct and e-mailed me a corrected award letter. This time I was to pay $97.00 a month starting March 15th. I was not sure that I was able to do this and asked for time to consider and speak to my husband but was told that I need to fax the papers back as soon as possible because the awards were handed out on a first come first serve basis. I went ahead and signed and faxed the papers back. In the first two weeks I received a e-mail that tuition was increasing $20 more a cr hr. Each class was 5 cr hours and $250.00 a credit hour when I started.
They advertise that they have lower online tuition than other online programs. This has now turned out to be another disception. By the third week after trying to keep up staying up till 1:00am in the morning and the thought of $50,000.00 plus since tuition was increased I realized I would be unable to keep up with that pace for 4 years. I contacted my adviser and told her I wanted withdrawl but she said she could not process my request until I complete the exit interview but no one called me to do this. I work full time and they knew this and had all my numbers, I received a letter regarding the first disbursment of $750.00. I called student services and told them I had chose to drop before I owed more money and to return all money they received. On the papers I signed it said if you withdral within the first week 100% would be reimbursed or within 2 weeks 80% would be reimbursed etc. So at the most I believed I would owe less than 50% and $100.00 admin fee. I e-mailed my adviser and stident services and again requested to withdrawl but nobody would call me until I received a call from the billing dept stating that I owed $200.00. I had not been enrolled more than 3wks they say it was 4 weeks because I logged on to use the e-mail system and tried to contact student services but that showed I was active. I was told by financial aid when the award letter was given that the 15th of March would and my first pmt of $97.00 that turned out to be another misleading statement. I told Evon who called me from the billing dept this and she said that the information she had showed I owed Feb 15th and now March 15th plus a late fee. My first day of class was Feb 28th so how did I owe for Feb 15th? I tried to tell her that I requested a withdrawl and I wanted to have a statement showing the total amount owed at that time and be done with it please have someone get in contact with me one regarding my status in the program. I have e-mailed student servises and called the head guy who I was told was Jeffery Harrison for two weeks. During this time I received another letter regarding another disbursement of $1330.00. I called again and left messages to have all money received returned.
To this day nobody has called me back. Not even the Jeffery Harrison who my husband tried to contact regarding the amount I owed them and the date of withdrawl. He has not called us back. I received my financial aid statements showing I owed Kaplan $1880.00 and I tried to call them and tell them it should be prorated but again no one would call me back. They did return the first subsidized disburment of $750.00 but kept $1330.00 and continue to bill me $1880.00 and won't call me back to discuss this. I have letters with incorrect dates for money owed and a letter stating they that they took me out of the program because I failed to log on 21 consecutive days I did quit logging on after the 4th week because I figured then they would call me back. They say that are accredited by the North Central Association of Colleges I thought they would help me so I e-mailed them I have not heard anything from them. I have copies of the letters to back these facts and would be greatful to any assistance you might be able to lend. I received a call from the Direct Loan billing dept and told her my situation and she was to turn in a complaint form but they get their information from the school so I still needed to contatct them. My grace period is about up and they are showing I owe them the $1330.00 plus interest. In addition to Kaplan's $1880.00. How could I owe that amount? Kaplan said I was enrolled 4 weeks, I say 3 but in either case it was not 50% of the 12 week term in a 4 year program.
I am going to court on March
20 to determine dischargeability of my
student loans (for law school).
I am telling my story to see whether anyone
else is in a similar situation.
I graduated in 2001 (age 58) amd could
not get a job for 3 years and still am
not employed in law. I was never
in default as shown by my recent credit
report, having used my teacher's pension
in dire circumstances to keep up the loan
I went back to school as
a non-traditional student to help me get
a leg up on life. I borrowed like
most did to help me get through the tough
times of going to school, raising a family,
having a mentally ill husband and trying
to get decent grades. The original
loan when I finished school was about
25,000. It seemed that I could not get
a hold on life as my husband who had his
own loans was too unstable to work.
So we put the loans in deferrment to help
us out which added only to the principal.
To make a long story short my loans are
now at 36,000. I am in ill health
and am trying not to default on these
loans. But i can not make the full payment
so I pay what i can every month.
This truly makes the powers that be quite
upset. They want their money
I have been turned over to the collection
agency. At times that I have spoken
with those at the collection agency, they
are very rude and hateful. I have
told them about my condition and they
I went to Spartan School
of Aeronautics from 1989 to 1991. When
I enrolled, I was told that "by the
time I would graduate, there would be
100,000 aircraft mechanic jobs open".
When I did graduate in June 1991, everyone
was laying off and there wasn't an aviation
job to be had. The total cost of my schooling
was $18,000. Since I had to go back to
making near minimum wage, I had to put
my loans in forbearance. I unable to get
a high paying job for 6 years. During
that time, I was in and out of forberance
(mostly "in"). I am not sure
the total amounts that I have paid over
the years to the various companies, but
I would have to guess that it is in access
of the orginal amount. The loan has been
held by three companies, the first of
which I don't remember and I would have
to go and dig up some paperwork to find
out. It was the consolidated in 1998 (at
a wonderfull 11%) with Southwest Student
Loan Corp. And, I just refinanced with
Sallie Mae in January at 8.25%. The total
due now is a bit over $41k. Now the kicker,
I am now unable to gain employment as
an aircraft mechanic (without moving a
large distance) and I am again struggling
to make the $350 a month payment.
Ivan L. Fail
I saw the story on the Fannie
Mae "shake down" on Student
loans on CBS 60 minutes this evening May
7, 2006 and wanted to congratulate you
on having the courage to stand up to this
larcenous, unprinciped and tyrannical
monster. As a retiree from an agency of
the U. S. Department Of Justice I doubt
that you have any concept of just how
big a "can of worms" you have
opened but I want to assure you that by
going very public you are definately on
the right path. I can tell you from many
years of experience and observation that
the "hip pocket" polticians
and the money compromised and corrupted
courts are not going to take any meaningful,
effective and timely action to clean up
this racket. It HAS to be done at the
"grass roots" level by thousands
of fed up victims who if necessary will
take to the streets en-masse to demand
justice and stay in the streets until
we get just that.
I never really wanted to
go to college. I did not do that
well in High School and I knew that my
parents could not afford to send me to
college. A few years after high
school I decided that I did not want to
be be a short order cook my whole life.
I knew many people who had went to college
and seemed to be successful. I decided
to give it a shot. In 1991 I went
to one of the most inexpensive 4 year
universities in the state of Missouri,
Central Missouri State University.
Because i was over 21 I was informed that
I qualified for student laons, at the
time I was told my repayment should be
about $50 a month. To make a long
story short I borrowed about $33,000 to
go to college. I am glad that I
went because I was able to get a job after
graduation but I did not make enough to
live on and pay my loans. I consolidated
my loans and because of the intrest my
$33,000 has now baloon up to an $82,000
principal and over 30 years I will pay
over $180.000 in !
I am not giving my full name and all info., as I am an attorney licensed in several states, and know how the "rich & powerful" work, etc. Let me tell you (with my client's permission) about a student loan case I handled, which is very similar to what I am reading here. My client is from a poor family, but had graduated with honors and with 3 degrees. She was never really able to make much income, lacking a "network" & due to the slander "the rich" engage in behind her & others' backs, but lived near poverty for years, paying off the $10,000 she borrowed as an undergrad, and $2,000 as a graduate, and $27,000 with a second graduate degree. She paid off her undergraduate loans, and finally her graduate loans. For the first time in her life, she was finally able to purchase a car and old trailer to live in.
After a couple of yrs., Sallie Mae (SM) as in sado-masochist, started harrassing her with repeated hang-up calls and 6-7 letters mailed per day, and calling her family & friends, calling her a "deadbeat", etc. She went to the police on the hang-up calls, but they did not want to act on it. Like several people on this site, she was very depressed and said she was suicidal, and thought that SM's false reports that she was in default (after they sent her a document stating that she was paid in full) were keeping her from getting a decent job. These acts were violations of the Fair Dept Collection Practices Act ("FDCPA"). We filed with the Court asking for a determination that she'd paid off her loans; for discharge under "undue hardship" for anything not paid (she had untreated cancer and recent surgery in addition to unemployment); & for recovery for violations of the FDCPA. We produced cancelled checks totaling over $70,000 and proof that SM had received the money, but not given my client credit for them; a request to check SM's interest and fee computations; proof that SM had admitted being paid in full, and we produced the originial consolidation note showing what had been consolidatd, and that it was only $32,000, not $42,000 in original principal as SM claimed.
Our opponent used the exact same document as us, which it got from us, but the court declared that it did not find my client credible, but rather only believed our opponent's evidence. I contacted a heavily experienced bankruptcy attorney who told me that I had the perfect case for an "undue hardship" discharge, if we could not prove payment in full. It gets better. After the case was filed, SM sold $10,000 which it now said was still due on the loan to other entities and a guarantor, and claimed it should be dismissed from the case, and not have to produce any records, nor answer questions, nor testify in court, etc., as it no longer held the loans. I objected that SM had the original records; held the loans when the case was filed; still needed to answer for its violations of the FDCPA; and even if it weren't a party to the discharge, it should have to answer discovery as a third party with relevant information, etc.
First the judge granted SM 5 continuances over our objection, dragging out the bankruptcy for a year; then yelled at SM's attorney that SM was in trouble for never keeping records; then said it believed SM and my client's testimony and production of records was "insufficient", although "it looked like" what my client testified to, and let SM out of the case. The judge granted discharge under "undue hardship" against the entities, but not the Guarantor. The only "evidence" the Guarantor produced was to say that my client, "must have had other loans that she doesn't remember", which my client denied, and which the Guarantor produced no evidence of. I was in shock and so was the Guarantor's attorney, when the judge held that my client still owed $10,000, and would have to pay $84/mo out of any unemployment money she received, although the court held that my client did not make enough money to meet her reasonabe living expenses. The judge said it was not an undue hardship to pay the Guarantor back, as my client had a good reputation in her field, had earned an upper-lower class salary in the past, and although unemployed for 3 yrs. in spite of diligent efforts to find employment, would "sometime" make a living again.
The judge offered my client's
car and trailer home to the Guarantor
in payment, but the Guarantor said it
did not want my client's "junk".
I contacted my expert friend in the field,
who said she thought we'd win an appeal.
Incredibly, we didn't. The appellate
court said the judge could believe my
client a liar, even though my client produced
documentation to back her up, etc., and
SM had no responsibility to prove its
defense. Now, two years later, my
client contacted me again. She's
continues to be unemployed (for 4 yrs
now); is out of unemployment benefits
and is only surviving by help from relatives...none
from our government. She can't even
get temporary work, and says employers
illegally ask for her SS number and indicat
they are checking her credit for jobs
which do not entail handling money, etc.
Recently, after 2 yrs., she heard from
SM again, claiming she owes them money,
asking for more than the $84/mo payments,
and for penalties for the last 2 years,
etc. She can't pay me, but even
so, I don't know what more to do for her.
I thought about filing a Motion in Interpleader,
or to enforce judgment, etc., but even
to me, the system seems too corrupt to
have any hope (although, I've found most
judges to be honest). I've done
and am doing the other things requested
on this site. I love the idea of
a class action, although I have never
done one, and am not competant to do one
without help from an attorney with that
experience. I am a poorly paid government
attorney, but would be willing to represent
people on a contingency basis, if I could
get the right situation. I have
been a member of Christian Legal Society,
and will only say there are some sympathetic
attorneys out there, but we seem to be
in a direct fight with Satan himself in
the cloak of SM. Send up your prayers!
Filled out an application
at Full Sail (a small tech college in
FL) signed a small box for student loans..my
father co-signed. Got an internship
in Nashville thought I'd deferred my debt,
but apparently only deferred 1 portion
of the loan (one way they confuse you).
In May of 2004 I got a call telling me
that I was in default...sold the car,
my equipment basically everything I owned
to get out of default..was told that my
loan would revert to the original amount
($32,000) but in the end they said that
the money I paid ($4000) was just penalty
fees. None of it went to the loan
itself. Now my loan is +/- $60,000.
They have attached to my father's credit.
He owns his own small company and this
has hurt him. My credit is SHOT.
I cannot get a job in the field of study...don't
have any steady work...can't pay NelNet
$400.00 a month which is what they say
I owe. So it goes on and on.
They call 2-3 times a day...bully tactics.
They will not give me any kind of statement
on account or any accounting of the money
I paid while in default. Have never
received an interest statement for my
taxes. Personally i think these
are the biggest crooks in the country,
and it's all legal. We have written
our congressmen, the federal government
all to no avail. Lawyers won't help
because they say it's government and they
don't do it. It's insane.
In 1989 I filed for bankruptcy on student loans. In 1995 I ended up living on the streets of Hollywood homeless. For the next 8 years, until 2003, I lived in an institution and was being rehabilitated by the State of California. For all I knew the original debt of $4,000 was discharged however, the Dept of Education did not contact me until I was making a good income in 2004. They stated that they could not find me however; I was in the system and all three credit bureaus listed my location as a hospital or institution from 1996 - 2003. If they had contacted me I could have filed for a deferment or forbearance.
They chose to wait and as it stands now I will be paying $26,000 on a $4000 loan which is a profit of $22,000.
I am in debt and this payment
is taking all of my disposable income.
In addition there is something wrong with
the system when the Dept of Education
can without a court order garnish my wages
and is making $22,000 profit. I am powerless.
I am not trying to get away with
anything. In fact I would be willing to
pay the original amount plus reasonable
interest/penalty. If contacted when ECMC
bought the loan this would not have happened
and my residence, being a hospital, was
on my credit report at the time. The government
intentionally waited to contact me, fully
aware that I was homeless and was being
rehabilitated, in order to make extreme
profit. Something is seriously wrong with
I wrote the following email
to Sixty Minutes after I viewed their
program. I would like to contribute
it to your site:
I work for United States
of Agrigulture the Farm Service Agency,
have misplaced my garnishment material
for student loan pay off. The two
original loans where in the amount of
$469.00 and $3,275.00 for a combine of
$3,744.00. This garnishment started
in August of 2004, I have paid Sallie
Mae collection agencies General Revenue
Corporation at total of $4,577.77.
I have calculated even with a collection
cost of $16.60 a pay period every two
weeks and interest of 3.34, that I have
paid my debt in full as of July 2006.
Their records indicate I still owe them
$304.08. Without the original garnishment
paper work, I have been unable to disput
the $304.08, in an effective manner.
Which has hinded my ability secure my
mortgage loan. With the approaching
closing date it is imperative, I receive
this paper work. Even after many
e-mails and phone calls, I still have
not received any information from my Human
I divorced my husband approximately
six years ago. Before we were married he incurred
over $30,000 in student loans with Sally Mae.
Once we were married, he consolidated his student
loan with a $700.00 student loan that I had.
I can honestly say I do not remember ever signing
any paperwork and nobody can seem to show me
proof of the original document that I signed.
During the time we were married I know he made
payments, but I am not sure how much actually
went toward the principle. In our divorce decree
it states that he is responsible for the loan.
But I found out the hard way that divorce decrees
aren't worth the paper they are written on.
In 2003 I had been cooking professionally for about 4 years, not really going anywhere when I decided to go to culinary school. Boy was that a mistake. I had been out of high school for 4 years already and had some debt, so when the school told me I could get finacial aid for the whole thing at a low pay back, I was in. They never gave me any options on who to borrow the money from, but gave me a sallie mae app. and told me exactly how to fill it out. Unfortunately, due to finacial problems I had to drop out of school half way through.
Six months later I recieved my first bill stating that I had a principal balance of 22,000 with 6% interest on one loan and 20,000 with 5% interest on the other loan and a 240 dollar payment. I was still going through a finacial hardship at the time so a few months later I claimed a 6 month forbearance. They said no problem, and my payments would pick back up in six months like normal. After six month went by I got my next statement saying I owed 425 dollars. After many battles and and different payment plans that doesn't help at all. My current balance as of 01-07 is 28,540.87 with 12.25% interest on one loan and 11,814.70 with 13.75% interest on the other. Estimated amount to be paid is 96,738.96 on a 42,000 dollar loan. These numbers we continue to go up, as I struggle to pay these ******* off while trying live and support my family.
It makes me sad to think that if you want to go to school and better your self, and be a more productive member of society that you will probably never make it. Cause, unless your rich and can pay for your own schooling, you either have to get a loan you won't be able to pay back or just don't go to school miss out on a better career.
To tell your story, please go here.