Everest Institute

[KDogg]

Sort of long but here goes...

My wife decided to try out Everest Institute. After she was accepted she applied for financial aid, which was also approved through Sallie Mae. But after a few months of attendance she began having health problems. Her doctor ultimately put her on medical leave after informing us that she was on the verge of a heart attack. Everest refused to accept this and, after a few weeks, dropped her from the course. They said she could return to the school; however, she could not re-enter the course she was in. As of this posting she is still under doctors' care and scheduled for surgery.

About a month ago a collections rep from Everest began calling about repayment of the student loans. At first we thought it was for the Direct Loans through Sallie Mae, but we finally learned tonight that it was not. Rather, it was a demand for repayment for class time she did not take due to the school dropping her from the course.

The rep that has been calling simply refuses to answer questions or clarify exactly what he alleges she owes the school. I had to get rather not-so-nice with him tonight before he finally explained the so-called debt. He also very rudely stated he could call anytime he wanted and would continue to do so. I asked for the address, which he did give me. However, he also said he knew I intended to send a Cease and Desist letter and stated that he did not have to comply and would still continue calling.

We are indeed sending the Cease and Desist letter and will be keeping a log of all times this or any other rep calls regarding this debt. We are also reviewing the contract due to some claims the rep made regarding it. In the meantime, is there anything else we should do? Any advice here would be greatly appreciated.

KDogg

[2ndTimeAround]

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KDogg

I understand what you going through - something similar happen to me a few years ago. I went to a local computer school - they signed me up for a multi-course MSCE certification program. At the time though I was getting a government school loan, with payment to start six months after I finished school.

After I completed my ($3800) A+ Computer tech course - watching videos on computer. Took the certification test and failed. I went back them I was really disappointed on the quality of education I was getting. They said I could retake the class.

Found out I could purchase my own A+ computer course on line for $900. Later I downloaded the entire course for free off a torrent site. Took the certification test a second time and passed.

I was getting ready to sign up for my networking course and receive my first payment notice - at the time I didn't understand why I'd be responsible because I was still enrolled in school. Found out they signed my up for a unsecured loan (9.75%, adjustable rate, balance $15,000). Immediately called the school to drop the remain classes.

At first they didn't want to work with me - started posting my story on different sites, and emailing links to the email address for the president of the school. It wasn't slander, I was really telling my story. About three weeks they contacted me to cancel the remaining loan. I still had to pay for my A+ course.

Six months later found out I qualified for a state program. Last spring completed five courses of Cisco, paid for by the state. Maybe your state offers similar programs.

In your case now - the bank is trying to get back money they paid the school. If you are going to get any restitution, you are going to have to get it from the school.

Good Luck..

Edited November 19, 2009 by 2ndTimeAround

[KDogg]

Thanks for the reply.

From what little I could understand from that rude rep, it appears they are trying to make her pay for class time that she has not and will not receive due to the school dropping her from the program. The school had to return the grant and loan money back to Sallie Mae, so now they're trying to collect it from her.

And, as I stated before, even if she did return to school they will not allow her to complete the course she was in. She can take something else but she would have to start from the beginning, which means more time in school for her and more money for them. I am not about to play into their game, nor am I paying for services she's not going to receive.

And I'm definitely not dealing with that rude rep, either. Especially if he's not going to hold true to his word and harass us as he promised. (Please note the sarcasm, lol)

I did come across some interesting things on the Internet, however. The rep keeps referring to a contract that allows the school to bill us for dropping the course regardless of who executed the drop. Well apparently, Everest and other schools affiliated with Corinthian College are educating students with outdated materials and not upholding their end of the contract, which promises job search assistance and intern-/externships. This will require a little research and pavement-pounding on my part, but if they want to argue contracts then so will we.

In the meantime, and further information would be greatly appreciated!

KDogg

PS: I know collection agencies cannot harass debtors, is there anything that applies to original creditors and/or their reps?