05.11.07 | Lenders Under Fire!
If you haven’t heard or read it in the paper, there has been much going on in the Education industry lately. Over the past few months there have been law suits filed, investigations into certain lenders, Sallie Mae got bought out, and now the shut down of lender access to the Government website NSLDS. This all comes because certain lenders (Federal as well as Private) chose to abuse their privileges. What this means in the world of banks and lenders is still up in the air. What this means for the borrower is a different story. It is going to require that the borrower/student be a little more careful when looking at thier statements. They are going to have to keep better records of who their lenders are, what loans they have taken out, and have the correct information provided to them to obtain this information.
Given the fact that most borrowers/students think Stafford is their lender, we at the Student Loan Network have provided students with a link to look up thier loans and find out who their lender are. All you need is your Pin number. If you have misplaced your pin you would have to apply for it again. You can do all of this at www.studentloanform.com. Just follow the prompts and it will connect you to the NSLDS government website. Students and financial aid officers are the only people left with access for now. Also, If you are looking to consolidate your student laons then you will need to have all your loan data on hand so the representative on the other end can better help you.
However, with the above being stated this is not to say that all lenders are bad. There is always that one or two bad apples that spoils it for the bunch. For the most part all existing lenders are still in practice and offer good services. If you have any further questions regarding this issue please feel free to contact the Student loan Network.
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I co-signed my son’s loan only to find out that the terms are not what they appeared to be. Shortly after depositing the loan check, I received a statment showing interest due. I immediately called the the loan cneter to find out what is going on? I was assured that the loan commences 6 months after student completes/leaves the college. However, since I was not comfortable with the response, I send them a letter asking for an explanation—the response to a letter never came. I then e-mailed them only to get a reply that they need more information. About 4 months have elapsed since the beginning and I’m no closer to finding what is going on? I called them again…again, I’m told that the loan starts 6 months after school, but this time I did something different…I kept on inquiring about the interest and finally got straight response that interest starts immediately. I complained that how can that be since the loan consists of two components: interest and principal. I then informed them that I’m going to turn in the loan immediately…they responded that I can not do this because this loan is more 30 days old. I did turn in the loan; however, I’m stuck with with origination fee and the interest.
My understanding is that all financil dealings with the public should be in “good faith”. this is anything but “good faith”…is there a recourse that I have regarding my situation?
April 29th, 2008 | #