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EdFund/SallieMae/CA refuse to validate debt-NOW What?


lke
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Hello, first post. Thanks for help with letters, info etc.

We sent certified DV letter 3/1/07. No one will provide validation.

Also, accounts are not listed as disputed though they have been clearly disputed many times.

CA called us on Friday and left message. We received correspondence from EdFund directing us to deal with the CA who refuses to correspond in writing. We WANT to pay what we REALLY owe and be assured that credit history will be updated accurately and appropriately.

This is an 11 year dispute with student loans and perhaps with help from you folks we will finally get it out of our hair.

Any ideas? Thanks!

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Hello, first post. Thanks for help with letters, info etc.

We sent certified DV letter 3/1/07. No one will provide validation.

Also, accounts are not listed as disputed though they have been clearly disputed many times.

CA called us on Friday and left message. We received correspondence from EdFund directing us to deal with the CA who refuses to correspond in writing. We WANT to pay what we REALLY owe and be assured that credit history will be updated accurately and appropriately.

This is an 11 year dispute with student loans and perhaps with help from you folks we will finally get it out of our hair.

Any ideas? Thanks!

Well if you are assingned to a CA you have NO choice on who you work with. This is the way student loans work. CA's do not correspond in writing either.

Sallie Mae would simply be reporting your default that they filed with Edfund. They do not have to validate as they are not the current holders of the loan. SM can continue reporting to your CR for 7 years from the date that your default claim was paid. Edfund is not working the account and you will need to submit validation to the CA. The CA can provide you with your correct balance with accrued interest, principal and mandatory collection fees. (The collection fees are charged by Edfund)

What is your dispute??

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Thanks for reply and info.

Bear with me as I give you the short version of an 11 year dispute.

In 1996 when we purchased a home, AFSA was instructed in writing to pay-off one of my husband's student loans. Instead they applied the payment to three loans, deferred payments and of course increased interest. When we asked them to change it, they said we told them to do it that way and the dispute began.

Since then, the loans have been transferred to Sallie Mae, EdFund/California Student Aid and numerous collection agencies. The student loans are the only negative on his lengthy CR and no one has been able to give an pay off demand to the underwriters so we have actually purchased additional properties during the last ten years. Now they are listed multiple times for the same loans...

The balance due on the loans is minimal (3-4,000?) and we want to pay it. We are not willing to pay for the added interest and collection fees that have been added on by each incompetent CA that we have attempted to correspond with over the years. AFSA of course refuses to provide any info and yet EDFUND will only provide payment history with them. And the current CA hasn't responded to the DV of March 1, 2007.

When we were in negotiation of a settlement two years ago, our Federal return was seized two days after we received the letter indicating our payment due and the date that it was good through. When I called the representative, he told me, "We can do whatever we want. Money changes everyday." Apparently, they can.

We have never received anything showing the two federal returns that were seized and how they have been applied. We want a validation of the debt so that it becomes apparent what is actually owed on the balance of the loans vs what has been added over the years that we have been disputing and writing letters without responses in many cases-just a bunch of finger pointing. Who is accountable in this chaos?

We are willing and able to pay in full. We just want a FAIR payoff given all of the circumstances and we want some assurance that the CR will be updated accurately and appropriately. CA says if we only pay a portion after negotiations that the CR will reflect settlement and lenders tell me that it won't positively affect CR in any significant way.

So...sorry to bore you with this tale of woes. We just want to get this thorn out of our sides. Is it naive to think that there must be someone out there who can look at the facts and say, "Oh, I get it. Let's resolve this, get it paid and move on. " I think that it is just too complicated for someone to actually sit down and review payment histories etc. Or, they cannot recreate the entire history because it has become so convoluted!

I guess bottom line, who can we press to validate the debt completely? Someone will have to go back and show ALL payments to each agency and from the Federal return as well as all of the fees and interests added to the loans right? Otherwise , what do the numbers they are demanding mean? How can we owe more now than before they took 3,000 in returns?

Uhgggg.......thanks for any help.

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Hi everyone,

I joined this site a while back but never posted anything since I hired Lexington to do the work for me (big mistake). In any case, I really need to know how I can go about changing my address on my CR. I did it easily with Transunion over the phone, but the other 2 boys don't seem to be as easy. Do you guys know the best way to do this with Experian and Equifax? Thanks so MUCH!

Leyla

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Who is accountable in the chaos?? You. Even though an error might have been made in not paying off one student loan by AFSA, you obviously allowed a balance to default. You should have just sucked it up then and finished paying the loans off prior to the default. You brought this mess on yourself.

Basically you are SOL. The loans has defaulted. The CA's do not have to acknowledge any dispute with AFSA or Sallie Mae, nor do they have to research it. You have made this more complicated and more expensive on yourself by not resolving it. All Edfund has to show is the claim paid amount and accrued interest and collection fees.

Even if they offer you a settlement now, all they will take off will be a portion of the collection costs. You are legally responsible for the interest. Your CR will indicate settlement/default and you will receive a 1099 for anything writen off.

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Oh, I get it. The government line, pay it even if you don't owe it just to make it go away because there really isn't any justice in our system. So, files of letters, copies of notes of calls with people who refuse to give their last names or extension numbers and people who assume that we are wrong. Guaranteed loans even if they are handled incorrectly. What a deal.

There's a saying about walking in another's shoes that applies here. Sometimes a change of perspective is very helpful.

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Oh, I get it. The government line, pay it even if you don't owe it just to make it go away because there really isn't any justice in our system. So, files of letters, copies of notes of calls with people who refuse to give their last names or extension numbers and people who assume that we are wrong. Guaranteed loans even if they are handled incorrectly. What a deal.

There's a saying about walking in another's shoes that applies here. Sometimes a change of perspective is very helpful.

Did you pay all of your student loans off?? If not, you owe it.

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Edfund is an old client of mine, so I know how they tick. What this basically comes down to it an old dispute of payment allocation. It is standard that when a payment comes in that it is prorated to all accounts. Even though you have 3 loans, they are considered one account. If you didnt pay the remaining balances on the account, they will default it. To have a payment applied to one account, it requires a notation with the specific account number for that loan.

If you had used the specific account number, the only way you could have had any legal power in dispute was to pay off all but the dispute amount. I am assuming you had either loans with different interest rates or a combo of sub and unsub loans. This would have required you to calculate down to the penny what they overcharged you by allocating funds to all accounts. Because you didnt pay the undisputed amount, you have no case. You cannot hold an entire balance hostage for a portion of a loan being disputed. Complicated...yes. So by allowing the non disputed portion to default, it puts you in a negative position with no bargaining power.

My advise?? Get a settlement and pay it off. Don't risk Edfund filing suit, which they will, particularly if there is a history of unwarrented disputes. Edfund cannot and won't go back to what something AFSA did.

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  • 2 weeks later...

What I don't understand is how you defaulted? You say you have (or had) 3 student loans with a single lender. Supposedly one was to be paid off. Well, you'd still have two loans you'd have to continue making payments on. You would still be getting a monthly statement showing amount due and current balance. So, if you were Mr. Goody Twoshoes you'd have continued to make payments as per the statement, right? If you continued to make payments, how did you default? The only way you could have defaulted is if you stopped making the required payments for months and months and months.

I have some loans with SM and with DOE. I paid DOE a year's worth of payments through their website, essentially paying ahead. They continue to send me a letter each month saying "Your account is paid ahead. Your next payment is due Aug..." Assuming things work today as they did years ago, I'd think at the very least that lump sum would have paid ahead your account for xx months. How did you miss this?

Again, how did you default if you were still making the payments that SM asked you to make on what you thought were only two more loans?

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Ahh, I see that you said they did "defer payments." Ok, so you paid ahead.

While you were disputing, did you not start making payments when you needed to?

Lesson learned, I hope. Money is money... a loan is a loan. Whether you owed 3 x $1000 or 2 x $1500 you still owed $3000. Why did you stop paying on the remaining $3000 just because it was spread over 3 accounts instead of 2?

I'm not sure why it should have mattered to you anyway. You bought your home, which was your main priority and goal. The number of accounts at SM or AFSA is a rather small drop of water in the oceans of life. It didn't prevent you from getting your home. You should have just paid the rest of the loan balance, monthly or in lump sum.

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