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Ok so I have a very confusing situation that I hope someone will be able to help me solve or at least point me in the right direction.  Sorry for the long post!

 

I took out a school loan from a University I attended in Spring of 2011, the loan was to be repaid from my federal student loan for summer courses I was taking. My loan came in and was credited to my account ( it said I owed nothing and was actually due a refund). When my grades for the Spring semester came in they did not meet the schools academic standards and I was dismissed. The only redeeming thing I could think of from that experience was that I had a bill in my hand from the school for $0.00. Fast forward eight months later, I get a bill from the school for the Spring 2011 loan that I believed and had documentation was paid off. Turns out the school said I was not eligible for the loan because of my Spring grades ( which do not come in until two weeks into the Summer Semester). 

 

I called and tried to talk to the school, which had added on a late fee before they even sent me notice of the bill. I have argued with them for years because they say they were supposed to return the entire loan and I have researched school loan policies and the school's policies and have found nothing. I have even talked to an attorney who has sent two letters offering to settle the matter for the original amount ( not the massive late fees they've added to the bill) which they have not answered.

 

They have reported the debt to a debt collector that has in my opinion reported the matter in a fraudulent way.  So I am disputing it as paid in full. What chance do I have at getting this removed from my reports?  Didn't accord and satisfaction happen when it was paid? Experian said it was just an intermediary in the dispute process, which really isn't true because the debt collector can put their information up, but I get a small sentence saying I dispute the bill, I don't get to show where the bill has been paid.

 

Anyway I know this is a long post, but hopefully someone has some advice for me! Thanks in advance!

 

 

 

 

 

 

 

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@sunnyday7

 

Didn't accord and satisfaction happen when it was paid?

 

 

Let me make sure I understand your post correctly.  You took out a loan for the spring semester.  It was to be repaid by another loan that was taken out for the summer semester?

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@sunnyday7

 

 

Let me make sure I understand your post correctly.  You took out a loan for the spring semester.  It was to be repaid by another loan that was taken out for the summer semester?

 

Almost, I took out the loan in the Spring semester toward the very end to pay for books for Summer classes.  So it was a loan taken out in the Spring semester for Summer Semester expenses. The school did not allow students to work for the first year, so loans and scholarships were how most student paid.

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They have reported the debt to a debt collector that has in my opinion reported the matter in a fraudulent way.  So I am disputing it as paid in full. What chance do I have at getting this removed from my reports?  

 

NONE.  Once you were not longer academically qualified the school is required to refund the ENTIRE loan to the creditor.  You now owe the school the tuition since the loan was rescinded due to academic failure.  The zero balance receipt you have is predicated your maintaining academic standing and completing the education.  If you don't do either then the loan(s) come due or the school is owed tuition when the loan is returned.  You don't get a free pass on the tuition because you did poorly.

 

I doubt it is fraud because when you did not pay the bill owed in a timely manner they can and did add on late fees.  It is amazing how quickly the balance can balloon.

 

Didn't accord and satisfaction happen when it was paid? 

 

No.  You didn't pay the loan or the tuition so there has been no accord and satisfaction.  

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NONE.  Once you were not longer academically qualified the school is required to refund the ENTIRE loan to the creditor.  You now owe the school the tuition since the loan was rescinded due to academic failure.  The zero balance receipt you have is predicated your maintaining academic standing and completing the education.  If you don't do either then the loan(s) come due or the school is owed tuition when the loan is returned.  You don't get a free pass on the tuition because you did poorly.

 

I doubt it is fraud because when you did not pay the bill owed in a timely manner they can and did add on late fees.  It is amazing how quickly the balance can balloon.

 
 

 

No.  You didn't pay the loan or the tuition so there has been no accord and satisfaction.  

Ok I think you misunderstood part of  my post. The $0.00 balance was predicated on nothing because it was issued after I left the school. Also, I read the schools policies and the Department of Educations' and spoke with the lender----There is NO requirement for a school to send back the ENTIRE loan. What most schools do in the above situation is take what the student owes from the bill and return the remainder. This school failed to do so. Also, accord and satisfaction happens when the bill is paid i.e. when the school accepted and credited the loan to my account---hence why I had a 0.00 balance. You cannot un-pay yourself, they could have refused the loan out right and not credited to my account, but they failed to do so. 

If they thought they were right they'd take it to court, but they know they're wrong, so they're using the credit bureau's in a sneaky way.

 

---AND the loan is not for tuition, and it was paid. Just so you know! 

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@sunnyday7

 

Okay, but because of your grades, you didn't qualify for the loan?

 I did qualify for the loan, which is why I received it. I did not qualify to remain in the school, but that determination was made after the school accepted the loan and credited to my account. It took them almost two weeks to send it back.  I researched the school's academic and financial aid policies and nowhere does it state that the entire loan would be sent back. Also, there is no federal, state or school regulation that requires the ALL loan proceeds to be returned. I think they just did it because they either made a mistake or got lazy and didn't deduct the proper amount before sending the loan back. So I still don't see how the reports to the credit Bureau's are accurate, as a payment was made on the account and credited to it.

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