- Since June 30th, 2018, FedLoan has been wrongfully reporting IBRs with PFH as having capitalized interest (although they should not) to credit monitoring companies. Here is how I got them to stop for mine...
- should i pay off my student loan?
- Is interest on my federal unsubsidized load tax deductible?
- Question on Canadian Government Student Loans
| Posted: 22 Nov 2018 07:26 PM PST A few days ago, I noticed this happening. I didn't know what was going on, so I made a post on here. Received mostly unhelpful comments, but to be fair, since I had no clue what was going on, and it turns out what they were doing was totally wrong, I didn't really have the correct language to describe it. I did more research over the next few days, and I found out that although borrowers with IBRs and partial financial hardship are not to have capitalized interest at least for the term of the repayment plan, FedLoan was reporting their balance to credit monitoring companies as though they did have capitalized interest. According to the people I talked to at FedLoan, this was a directive by the Dept. of Education. I don't know if that's true or not, though I wouldn't put it past them with DeVos there... Anyway, I made quite a few calls and emails over the next few days, sending a few clear cease and desist messages and letting them know I would be taking legal action if they did not correctly report my balance as per my repayment agreement, and that it would go very poorly for them. I sent it through their email system (which is annoying b/c you can only do 2000 characters and basically no punctuation except periods and commas) and uploaded it under "other" to my documents on my account. Today they did remove the capitalized interest from my credit reports! Here is the last message I sent them, which I think was the most helpful for my case, and also explains exactly why what they're doing to IBR borrowers with PFH is wrong. I also sent similar messages explaining this to the credit monitoring sites. I hope this can help you all in similar situations! ...All of this is based on information directly on your website, which I have made screen captures and archives of and which you would also be compelled to disclose in a lawsuit. Keep in mind I have an IBR with PFH. You say "Capitalization is the addition of unpaid accrued interest to the principal balance of your loans. This means that your principal balance increases, so you will pay more in interest over the life of the loans." Then you say "As of June 30, 2018, FedLoan Servicing changed how we report your account's Current Balance to consumer reporting agencies. Previously, we reported your Current Balance as your principal balance only; presently, we are reporting your account's Current Balance as your • Principal balance, • Unpaid accrued interest and • Late fees, if applicable." And "Previously, we reported your Current Balance as your principal balance. However, as of June 30, 2018, FedLoan Servicing updated the way we report your Current Balance to consumer reporting agencies to reflect your account's principal balance, unpaid accrued interest, and late fees (if applicable)." So based on your own definition of what capitalized interest is, you are now (falsely) reporting my current balance as having capitalized interest. This is a false report because, again, as your own website states, "IBR: Interest will not be capitalized while you have a Partial Financial Hardship (PFH)." Yet, as you admit above, you are reporting my current balance as capitalized interest, because "Capitalization is the addition of unpaid accrued interest to the principal balance of your loans," and you are reporting my "Current Balance to consumer reporting agencies to reflect your account's principal balance [with the addition of] unpaid accrued interest" as one figure. You say yourself that "Under the Fair Credit Reporting Act (FCRA), we are required to report complete and accurate information," which you are directly violating by reporting capitalization when there is, and should not be, any capitalization ("principal balance [with the addition of] unpaid accrued interest") on my IBR with PFH. Doing so is reporting incomplete and inaccurate information. I'd also like to note that even if there was to be legitimate capitalization (which in this case there is not), you would still have to provide 30 days' notice. However, you admit on your own site that you did not provide any notice: "Why wasn't I notified about the change in how you reported my Current Balance? We apologize if this change caused you any inconvenience as that was not our intention. We are required to notify the consumer reporting agencies of your Current Balance on a monthly basis." So again, this is illegitimate capitalization. So again, I'm letting you know that you have 9 days to provide ACTUAL accurate information to credit monitoring companies, as you're required to "under the Fair Credit Reporting Act." If you have not provided them with my accurate current balance, which is $X, since I have not legitimately accrued any capitalized interest, within 9 days, I will take legal action. And given the above information, I am very confident that neither a class action nor a lawsuit from CA's Attorney General will go well for you at all. [link] [comments]  |
| should i pay off my student loan? Posted: 23 Nov 2018 01:21 AM PST so i took out a 12k loan for my freshmen (current) year (6k for each semester) and i've saved up about 1K and my grandma has 3K in a savings that she's working on withdrawing to pay for the first disbursement of my loan. i also got a full time job being paid $16.50 so i should be able to pay off my last thousands pretty soon. and then some point during the second semester i should be able to pay off the second disbursement of money. sophomore year, i'll probably need to come up with more than 12k and i'm not sure if i'll have enough saved from working. if i don't, i figure it won't be long until i am able to pay off the new loan (or at least the first disbursement of it). anyway, someone told me to pay off my loans would be a bad idea because the bank (wells fargo) will think i have money and won't want to loan me. but i was thinking if i did pay it off, i would have better credit (i had no credit before my first one) and my interest would be a lot lower (right now i have 11%). it also stresses me out knowing that i'm so much in debt and that interest is accruing everyday so i think paying my loan off will give me a better piece of mind. anyway, i was just looking for opinions about what i should do and what's the best/smartest way to go about the situation. thanks [link] [comments]  |
| Is interest on my federal unsubsidized load tax deductible? Posted: 22 Nov 2018 06:59 AM PST |
| Question on Canadian Government Student Loans Posted: 22 Nov 2018 06:50 PM PST I currently am in repayment assistance following my degree in Canada, that i got with both federal and provincial grants and loans. Almost 2 years after I got it there hasn't been a single entry-level posting in my field and I've been working minimum wage jobs just getting buy. At this point I'm really considering going back to university for Computer Science but there is NO WAY I would be approved for a bank based loan (single and no family following school has left my credit...ouch). So I was wondering if it was possible to take out a second loan while under repayment assistance. Resources online seem to dodge this one and any of my friends I've asked to potentially at least loan a small amount to get started have told me to suck it up it was my choice to get a worthless B.A. Any info appreciated. [link] [comments]  |
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