Student Loan Consolidation Assistance

Loan Disputes

Confusing paperwork, multiple loan servicers, and repeated selling of debts can often lead to mistakes and the need for correction to accounts of student loan borrowers. There are many common disputes, but hopefully, a vigilant accountant will keep track of where their loan is held. If the numbers get mixed up, follow a few guidelines to get the loan back on track and corrected.

First of all, look at every piece of mail from your lending institutions. They may send a few pieces of solicitous mail looking to make more of a profit; however, the letter may be to tell you they have sold the loan to a new company that will be contacting you. If this is the case, be sure to check over the final amount that is sold to the new servicer and note whether or not it matches your records.

When the new company contacts you, be sure to compare their numbers to your records as well. The sooner a problem is noticed, the easier it will be to resolve. If the numbers do not match, contact your original lender for a record of the debt they sold. Then contact the new company for their record. Often this will reveal a simple typographical error and be fixed quickly.

If the issue is concerning the terms of repayment, it may not be as easy. The new lender may not offer the same benefits as the original company, and it may take a little more pushing to get your corrections in place. If your loan has been defaulted, the usual payments will be expected to be high to reverse the trend. This means that the debtor will be required to make the payments, even if it means a wage garnishment or tax return interception. The company that purchases the debt of a defaulted loan is able to set the terms for repayment.

The terms, however, cannot induce economic hardship. If you are in a position where this is happening, start the process of appeal by filing a Financial Disclosure Statement. This means that the debtor provides a detailed statement of income and living expenses to the Federal Loan Department, school, or agency that holds the debt. While you are disputing a loan issue, it is best to continue to make voluntary payments so that the lender can see you are willing to work with them to get the debt paid off.

Be sure to settle all disputes with professional and good-intentioned manners. Remember that the people you come into contact with are generally not going to profit from your misfortune, nor are they going to personally be taking your money. They are working for their living just like anyone else, and they are trained to be compassionate without allowing excuses to take over their thoughts.