I owe a student loan, everytime I claim my taxes it gets taken away and put towards my loan which is in default, ok, that;s fine... But my question is why don't I recieve a statement informing me that this money has been applied to the loan and why can't I be sent a statement that reflects how much was applied and my balance before and after? It seems like they take my money and my loan never decreases! I don't even see a letter or a call telling me where this money goes!
2006-10-05 17:13:10 · 4 answers · asked by Anonymous in Education & Reference ➔ Financial Aid
First of all, it's VERY possible that your loan isn't decreasing even as payments are made. If you haven't been paying off your loan, chances are good that your total outstanding debt has grown so high that the tax refund barely makes a dent in the principal balance (i.e. it only covers accuring interest).
Finding out where the money goes is very simple -- you have to ask. Contact the company and ask for statements or set up an account with them online. Very often, lenders lose touch with their borrowers because the borrowers don't keep them updated with their contact information. Did you know that, when you borrowed the loan, one of the things you agreed to do (on the official, federal form that you signed) was update your address? Don't assume that they know how to contact you just because they have been granted the ability to withold your tax refund.
To find out who holds your loan, you can go to www.nslds.ed.gov (apply for a PIN if you don't have one). If you are in default, chances are that the loan doesn't belong to the same company with whom you initially borrowed. If your loan is in default, it has probably gone into collection -- meaning that it has been sold to a collections agency. On NSLDS, you will find your loan holders' contact information. Once you have this info, contact the loan holder to update your address/email information and see if there is anything else you can do to rehabilitate your loan.
Being in default on a student loan is not something you should take lightly.
2006-10-06 06:55:18 · answer #1 · answered by FinAidGrrl 5 · 1⤊ 0⤋
If it is through the Dept of Education you should get a statement every month from them stating how much you owe them. It comes in an envelope that says Direct loans on it. If you have moved they may not have your new address. You can apply for a default and things through them if you just call them. There is a number. You can e-mail me if this is who your loan is through and I will give you the number. If it is through someone else then sorry I can't help much. Good Luck
2006-10-05 17:23:42 · answer #2 · answered by Kellen's Mom 2 · 0⤊ 0⤋
Thats just th eway it is.I'm caught up in the same situation and they did the same thing to me.The fact is they are allowed to.You have six months to pay back the loan when you grauate or quit, then if u dont they take it out of ur taxes and will go as far as t take it out of your paycheck if u goto work.I did find out that if you call them and work out a payment pan (the least u can pay) then they will stop doing that to you.There is also a place that will consoladate the loans and will even contiue to pay for u to keep going to school the name i found it online under consolidate student loans and they will get ur tax money let alone real quick
2006-10-05 18:10:40 · answer #3 · answered by Anonymous · 0⤊ 0⤋
you should contact the ppl that u got the loan with and talk it over with them becuase i think you should get told wit a notice how much is taken and when payments are due... some state take it out with out u knowing... they try to be very slick about there buziness but u should contact them asap!!!!
2006-10-05 17:17:05 · answer #4 · answered by Lil Aquarius 3207 2 · 0⤊ 0⤋