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____________________________________________________________________________________________________________
Name
Withheld
About
16 years ago
I went to a
college that
I saw advertised
on TV. At the
time my husband
had recently
passed away
and I was taking
care of my three
children. One
of the things
about the college
was that they
had day care
on campus .
My youngest
was 6 months
old and they
said that she
would be able
to be in the
day care. I
started attending
classes then
they said that
my daughter
was too young
for the day
care on campus.
I only went
for about two
months when
they told me
this I decided
to withdraw
from the school.
I withdrew then
moved away I
did not hear
from them for
about 12 years
when I received
a letter telling
me that I owe
25,000.000 dollars!!
I couldnt believe
it as the original
loan was only
about 4000.00
well to make
a long story
short they started
taking my Federal
Income Tax Refund.
The situation
at the present
time is that
I am recently
unemployed and
my son has been
in the hospital
and is disabled
I have huge
medical bills
and I am seriously
in debt and
am about ready
to lose my house
and I dont even
have any money
for food. I
wish that I
could have gotten
my refund this
year for 2604.00
then I could
have gotten
out of this
financial nightmare.
The only way
I will ever
get out of this
debt is when
I die.
____________________________________________________________________________________________________________
Ozzie
This
is a very emotional
subject to me
and my wife.
We deeply regret
the day we signed
those student
loans documents.
We considered
the day we signed
way our sanity,
freedom and
economical future.
The professional
schools (in
our case Optometry
School) didn't
considered the
economical future
of the profession,
nor the fact
that the optometric
profession is
steadily been
transformed
from what used
to be a very
profitable independent
profession,
into a controlled-by-corporations
employment with
fixed earning
potential. Corporations
like Wal-Mart,
Luxottica (LensCrafters,
Pearle Vision,
and Sears Optical),
COSTCO, and
many others
are depriving
us with the
earning potential
necessary to
pay the enormous
quantities of
student debs
incurred by
the earning
of a degree
that now is
just another
"Wal-Mart
associate".
The most used
recruitment
gimmick used
by these corporations
is the fact
that by getting
employment with
them you can
pay your students
loans faster
because you
will not be
"burden"
by a private
office overhead.
The truth is
that business
lenders are
very hesitant
now in lending
you money for
a private office
first because
of your enormous
amount student
loan debs !
(and in
the case of
poor student
like my wife
and I with no
collaterals)
and second because
of the unfair
competition
by these corporations.
This create
a vicious circle
where you have
to stay working
as an employee,
earning a fix
salary for years
with no potential
growth, with
the added disadvantage
that you are
considered a
"professional
employee"
thus not legally
entitled to
any Labor Department
protection (exempt,
or non minimum
wage), thus
potentially
vulnerable to
dismissal at
anytime without
any valid reasons.
Many optometrists
work at these
corporations
with the constant
fear of dismissal
(the famous
"30 day's
cancellation
of employment
or lease"
optometrist's
contract clause).
This creates
finally a control
over the practice
of your profession
by lay non-professional
personnel that
damage you integrity
and professionalism.
How my wife
and I have been
harm by these
student loans?
1- My wife abandoned
the profession
4 years ago
and returned
to teaching
because the
only job she
could find was
as an employee
doctor, with
no benefits,
no vacations,
and no incentives.
6 years of "slavery",
pushing eyeglasses
and contact
lenses prescriptions
regardless of
the health of
the patients
for the profits
of these corporations,
the burden of
about $200,000.00
in student loans
(mostly unpaid
accumulated
interests because
we were never
earning enough
money to pay
the regular
bills and feed
our kids). Two
years ago she
suffered a debilitating
nervous breakdown
that ended with
her hospitalization
in a mental
institution
twice. Now she
is under medications,
with a state
10% disability,
but working
as a teacher
still. She is
now almost in
default on her
$200,000.00
Direct Loan
consolidated
loan with no
hopes in sight
to ever pay
this back.
2- I have also
a $200,000.00
Direct Loan
consolidated
loan, also mostly
unpaid accumulated
interests, plus
a "pseudo-student
loan" serviced
by the American
Education Services
that couldn't
be consolidated.
Last week I
had to make
a payment of
$670.00 in late
payments after
they called
to my employer
with threads.
This payment
left me with
just $40.00
in my pocket
for two weeks
until my next
paycheck. I
work as an employed
optometrist
with a fix income
for the last
10 years, as
the payment
for "professional
services"
is dictated
by what these
corporations
are paying.
They haven't
increased the
basic payments
for optometric
professional
services in
that many years.
I haven't taken
a vacation in
10 years. The
majority of
my colleagues
are working
all 7 days of
the weeks and
still are incapable
of living plus
paying their
loans. We all
live by deferments,
forbearances,
economical hardship
temporary forbearances
to survive,
but at the sometimes
we see the exponentially
increase o!
f our
loans by accumulated
interest.
3- We live with
the constant
fear of the
federal government
indicting us
for defaulting
these loans.
The fear of
law obeying
citizens having
to be call to
federal court
as a common
criminal for
the only "crime"
of been poor,
wishing to study
a profession,
been "seduced"
to borrow thousand
of dollars with
the false/misrepresented
argument that
by graduating
your earning
potential will
be enough to
pay these loans.
We have a government
that allows
non-professional
corporations
to practice
our profession
by employing
optometrist
under a fix
income, and
then the same
government has
the potential
to indicted
me federally
for not "producing"
above this fix
salary to pay
the money borrowed.
My wife and
I, as well as
hundred of colleagues
feels betrayed,
cheated and
deceived by
a system that
encourage you
to become a
student loan
borrower, but
will then tern
a blind eye
to the economy,
professional
status, bankruptcy
laws that excluded
us, and the
control of corporations
over our ea!
rning
potentials.
4- My wife and
I can find a
way to encourage
our kids to
study a profession.
How could we?
They are the
one watching
us killing ourselves
physically and
mentally to
survive economically
after the sacrifice
of studying
10 years and
eventually ended
with a student
loans debt that
we Machiavellicaly
joke that "only
death will do
us apart".
Why we must
be treated by
federal criminals?
Why the harsh
punishment of
having to endure
the humiliating
experience of
your name published
"by-law"
in a list produced
by the Department
of Heath and
Human Services
like a common
thief if defaulting
a HEAL loan?,
Why we are a
discriminated
class and forbidden
to list these
loans on bankruptcy
applications,
a right open
to even the
lowest and most
despicable individuals
and corporations?
Why MY government
constatly clear
defaulted foreign
loans, but punish
their own tax
paying citizens?
This is a situation
that, based
in our economical
forecast, will
become worse,
as more and
more health
care professions,
that used to
be independent,
now are confronted
with the fact
of every day
lower medical
insurances compensations,
HMO's and corporations
control over
salaries, fees
and earning
potentials,
the government
blind eye and
the increased
number of new
graduates lured
by the false
by-the- schools
hope of a golden
pond after completing
their degrees.
We are very
aware of our
responsibilities
as borrowers,
and we had made
every effort
to pay our incurred
student loans
debs. But we
were never had
the opportunity
to did it. Now
we are "cursed",
considered "untouchable"
by commercial
lenders, our
credit is ruined,
our profession
succumbed and,
above all, we
will someday
be considered
federal student
loans defaulted
criminals (this
is a realistic
assumption base
in our long-term
forecast of
our professional
earning potential).
We hate with
passion the
cursed day we
decided to study
a profession
and applied
for student
loans. It was
the day we ruined
our lives and
future.
My wife paid
it with her
mental health,
my children
are paying it
by seeing their
parents not
been able to
provide nor
to have a common
quality of life,
and I am trying
desperately
not to become
another "statistics"
federal criminal
with the only
crime of wanting
to study and
not having blessed
with the "Midas
touch".
____________________________________________________________________________________________________________
Travis
My
college debt
has been hanging
over my head
ever since I
went to college
in 1997.
I was borrowing
a regular amount
which would
have totaled
about 30,000
dollars when
I graduated
from school.
I felt that
borrowing money,
in a sense,
was actually
a good thing.
It would give
it value, and
encourage me
to be dilligent
in my studies
and to get as
much out of
the situation
as possible.
My junior year,
right before
studying abroad
my mother had
brain surgery.
Perhaps it's
just an excuse,
but I fell into
a depression.
My mother was
eventually diagnosed
with alzheimers
disease, and
has just recently
been put into
a full time
care facility
all at the age
of 55. I grew
ever anxious
about how I
was going to
pay my loans
back, and even
how I was going
to finish school.
I went back
to campus, and
could barely
get out of bed
some days.
I had to send
home some extra
things from
my study abroad
trip, and I
had to put those
things on my
credit card.
Only about $100.Having
nowhere to go,
when payment
came due, not
to mention my
total state
of parlysis,
I didn't make
the payment.
Which was the
beginnig of
my bad credit.
My family didn't
have any more
money to suppliment
the small amount
they were even
then, so I had
to borrow it
all to finish
school. With
my damaged credit
from a single
late payment
on a $100 dollar
credit card
bill, there
were no more
loans avaliable
to me at a reasonable
rate. I had
to borrow loans
(Wells Fargo)
at 10 and 15%!
I was in Boston
right after
9-11, and there
wasn't a job
to be found.
I was running
out of time
in my grace
period after
graduation,
and I needed
a job.
Being a Japanese
studies major,
I came back
to Japan. With
a pile of a
number of seemingly
uncountable
debts to pay
off, I was totally
shell shocked.
My family actually
needed somebody
to by my father's
house in order
to afford putting
my mother in
a care facility,
so my family
was the last
place I could
turn to. At
one point my
father took
a life insurance
policy out on
me in order
to protect himself
from being responsible
for paying my
loans if something
should happen
to me.
Although, I
made an ok salary
in Japan, the
money I lost
in conversion,
and the incredible
number of debtors
I had took out
huge portions
of my salary.
I couldn't afford
to do anything.
I got a new
job that paid
better in a
different part
of the country,
but I had to
pay $600 up
front for the
furnishings
in the apartment
as well as for
a car. I could
not afford to
pay the car
insurance either
as I was sending
home all of
my money to
a million different
debtors. At
one point I
was involved
in a car accident
(luckily not
my fault, and
they had to
pay for the
damage), but
I was a public
employee, had
no insurance.
My office got
incredibly angry
at me, telling
me I was making
more money than
most people
in their office.
All of this
because I was
a slave to my
debt, and had
to send all
of my money
home.
I went through
a very tense
year then. I
needed to make
more money to
pay off my debts.
I moved to tokyo
with no job
prospects, but
was extremely
lucky to find
a job that was
in my field
and paid fairly
well. consolidating
my loans with
ACS made payment
more clear,
and possible.
Which would
sound like a
happy ending
to the story,but
I still want
to go to graduate
school. Even
though I sent
home tens of
thousands of
dollars during
those first
few years, almost
all of that
money went to
interest on
the loans. As
I said in the
intro, I have
no problem with
being expected
to pay the money
I borrowed,
but all of that
just went to
interest payments.
I still have
close to $50,000
in debt. I am
in a huge rush,
so I make monthly
payments of
over $1500 in
hopes that in
a few years
I will be debt
free, just to
borrow maybe
$150,000 to
go to graduate
school. With
my credit situation,
however, I'll
probably only
be able to get
high interest
loans for that,
and will probably
have to save
the cash upfront
if I ever want
to consider
graduate education
in the US. That
means graduate
school is possibly
8 years away,
3 at least.
Because of education
debt.
Something is
wrong with the
American education
system. I realize
that if the
government paid
for all levels
of education,
like in Sweden
and in part
the UK, that
people from
all over the
world might
come to the
US and feed
off the system
without paying
taxes to support
the system,
but it is just
as rediculous
to put a penalty
on education
like this. My
life is only
somewhat settled
downn now after
incredible stress
almost exclusively
from education
loans. Many
people I know
have parents
who were independantly
wealthy who
paid for their
children's education.
There is no
reason for the
American education
system to be
this way. Through
some form of
personal, private,
and government
funding, people
should not be
going into the
work force with
a major handicap.
____________________________________________________________________________________________________________
Frank
Presently,
I am living
and teaching
in the Marshall
Islands.
My last state
of residence
was in Kansas,
where I was
teaching full
time at a college.
I left my husband
during the last
3 months of
my senior year
in college and
took out my
first student
loan for $1500
so that I could
afford rent,
food, gas, and
the basics for
myself and my
son. Though
my ex-husband
had been ordered
to pay child
support, he
did not.
I had the opportunity
to attend graduate
school.
It had always
been my goal,
and I hated
to give it all
up due to a
divorce and
an inability
to obtain child
support assistance
from my ex-husband.
So, for graduate
school I took
out loans to
cover out-of-state
tuition costs,
books, research
supplies, and
childcare.
But, I also
worked 3 jobs
in order to
take care of
my son and afford
to attend school.
I thought that
a few hard years
would pay off,
when after school
I might obtain
a decent position.
I borrowed somewhere
around $30,000
in student loans.
By the time
I actually obtained
a full time
position in
my field, I
teach biology
at the community
college level,
the interest
on my loans
had grown, and
my payback amount
was up to $70,000.
My monthly payments
in order to
pay off anything
on the interest
would have been
over $500 at
that time.
Continuing as
a single parent,
and based on
my limited income,
that was an
impossibility.
So, I made income
contingient
payback amounts
of about $200
per month.
In order to
off-set that
amount, I also
worked a second
job. However,
the interest
amount and total
payback amounts
continued to
clime to insane
levels.
When it reached
over $100,000
on a $30,000
loan, that is
when I finally
decided this
was ridiculous
and quit making
payments.
I have no problem
in paying back
the amount that
I originally
borrowed, but
on this track,
I will pay loans
the rest of
my life, and
show absolutely
no dent in the
principal amount.
Many civilized
countries offer
free education
to their peoples.
And, I do agree
that people
should try to
pay back what
they borrowed
if they can
afford it.
However, the
federal government
should allow
people to pay
back exactly
what they borrowed
and not 2, and
3, and 4 times
the original
amount.
People who become
educated can
ultimately earn
more money,
make purchases,
and pay taxes.
The government
and the nation
should grow
by those means.
for my son to
grow up and
move out before
going back.
If I had know
this would happen
to me, I would
have remained
an uneducated
slob.
And, I am certain
that most people
are just like
me, they would
like to pay
back what they
owe, but feel
powerless and
hopeless that
it would ever
happen.
I have toyed
with the idea
of giving up
my U.S. citizenship
to simply start
a life permanently
elsewhere.
Wouldn't the
government like
to work out
payment withdraws
from individuals,
in affordable
amounts, for
the amounts
they borrowed;
rather than
to have thousands
like me who
just give up
in extreme hopelessness.
I can't believe
that I worked
so hard in college,
following the
american dream,
only to feel
that I will
spend the rest
of my life as
a deadbeat!
It is almost
a crippling
depression.
I spent all
of my son's
younger years
working 2-3
jobs to pay
bills and provide
a decent life.
I simply can
not work 2 and
3 jobs for the
rest of my life.
And, I would
like some time
with my son
before he leaves
home for good.
My solution,
was to move
out of the country
to work.
However, this
is can not be
a permanent
solution and
it does not
make my ever-growing
debt vanish.
Thank you for
providing a
forum, and I
only take comfort
in the horror
that thousands
out their suffer
my fate as well.
____________________________________________________________________________________________________________
Michelle
I
am writing on
my husbands
behalf- my husband
took out a student
loan through
Sallie Mae back
in 1993 while
he was attending
a technical
college (which
to this date
we are STILL
repaying). He
actually had
two loans- the
original amounts
were $1900.00
for one of them
and $1313.00
for the second.
Around 1996-7
he was sent
to Germany with
the army reserve
unit he was
in. His first
wife was suppose
to be taking
care of all
the bills- which
she didn't,
when he came
home he basically
found that his
wife had cleaned
him out. He
contacted Sallie
Mae and explained
what happened
but got no sympathy
or willingness
to work with
him.
In early 2000
we bought a
house- and part
of the mortgage
loan was to
pay off some
outstanding
bills we had-
one of them
being Sallie
Mae. We were
required to
call and get
payoff statements
from everyone.
Once we got
the statements
we had to turn
them into the
mortgage loan
agency, and
we were then
issued checks
to pay everyone
off. So- we
thought we paid
Sallie Mae off
(I very vividly
recall the day
that I talked
to someone at
the Sallie Mae
office- I asked
her to send
a payoff statement
and asked what
the TOTAL amount
owed was, she
told me that
Mr. Taylor owed
a total of $531.00
to pay off his
account.)
They never sent
a statement
showing that
his account
was paid off
and that he
now had a 0
balance, even
after several
requests.
Well a year
later we get
a letter from
Pioneer saying
that he still
owed over $1000.00.
We found and
sent them a
copy of the
statement they
sent to us as
well as a copy
of the check
we sent to them
(which they
claimed they
never received-
until I showed
them their stamp
on the back
of it!!)
They said 'too
bad you still
owe the money'.
They claimed
that my husband
had two accounts
and they dont
know how we
got a statement
from them only
saying he owed
$531.00. They
also said that
because this
was a federal
loan it was
never going
away- it is
only going to
grow and grow
and grow.
Well- as of
last month we
still owe$512.44
on one account
and $826.76
on the other.
We fought them
for several
years but we
got no where.
So we're stuck
paying a loan
that was already
paid off in
2000.
(At one point-
my husband was
laid off from
work we fell
very far behind
in our bills-
to the point
of seeking bankruptcy-
but wouldn't
you know it-
we couldn't
claim bankruptcy
because our
debt was mostly
federal!!)
OH- and to top
it off- my husband
was called to
active duty
again a couple
of months ago
and is covered
under the soldiers
and sailors
act. I sent
Sallie Mae a
copy of his
orders and a
copy of the
act which is
suppose to bring
our interest
rate down to
6% for the duration
of his time
in active duty
during war time.
I received a
letter from
them saying
"...We
cannot grant
your request
because the
provision that
you referenced
does not apply
to the Federal
Family Education
Loan Program
thta is insured
under Part B
of Title IV
of the Higher
Education Act
of 1965, as
amended (20
U.S.C. Section
1701 et seq)"
It goes on for
a full page
explaining why
they cant grant
this.
I would love
for this company
to pull an 'Enron'.
____________________________________________________________________________________________________________
Janie
I
was in college
in 1991 receiving
Stafford and
SLMA Loans.
Suddenly, in
my 4th semester,
I get a sudden
default notice
on one of my
student loans.
I hadn't so
much as gotten
a bill that
payment was
due. How could
I? I was in
school!! I called
immediately
knowing I had
sent in all
of my paperwork.
It simply had
to be an error.
The same company
had just given
me money a month
earlier in the
semester (as
far as I knew).
After two months
and hundreds
of phone calls,
I couldn't get
to the bottom
of it.
One company
had sold their
loans to another
company and
they could no
longer be contacted
as they were
no longer in
business.
At the time,
I had no other
choice than
to take time
off from school
and pay off
the loan (which
was around 1500
dollars for
one semester).
I paid the loan
and tried to
enroll in school
again.
I had problems
getting financial
