ladycatsinger

Student loans paid off by USA Funds, what is going on?

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I had two Student Loans with Navient. Since my husband became totally paralyzed and I permanently lost his income, I applied for and was approved for an Income Driven Repayment Plan in November, with my payments being $0 and only interest accruing. We filed Chapter 13 in April due to the loss of income and his medical bills.

I was checking my credit report yesterday and noticed that it showed my 2 student loans as paid off with a $0 balance.  I logged into Navient and saw that my loans were paid in full by USA Funds. Are they paid off or is USA Funds just taking over my loans? I don't feel like they should have been touched since I was on the IDR, and I was never informed of this, I only found out by checking my credit report. I am afraid that USA Funds will start billing me for the loans that I had the IDR on and force me to make payments. ,,something that I didn't have to do with Navient because of the IDR.

Does anyone have any idea of what is happening? I had been making all my payments up until the time that I was approved for the IDR, so I wasn't in default or behind at all. I had never heard of USA Funds before this, so I don't know what their business is or anything. This is concerning me greatly, as I cannot afford to make payments on the loans (the very reason I was on the IDR). Any help or insight would be very much appreciated.

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Take a look in your loan agreement. I'll bet there is a clause in there that says they may sell the loan at any time to anyone. 

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I finally got an answer from Navient. Turns out that my loan had a claim against it on my bankruptcy, so they transferred it to the company who guaranteed my loans (USA Funds). Both my attorney and the lawyer for the Trustee overseeing the bankruptcy had told me that the student loan would not be included in the bankruptcy, so that surprised me.

I need to talk to my lawyer about it, since I don't want them to put it in the bankruptcy and then have it disallowed and I would be stuck making payments to USA Funds when I was on the IDR plan with no payments with Navient.

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12 hours ago, ladycatsinger said:

Both my attorney and the lawyer for the Trustee overseeing the bankruptcy had told me that the student loan would not be included in the bankruptcy, so that surprised me.

They likely meant it wouldn't be INCLUDED in the BK and discharged.  NOT that it would not be listed as a debt.

You are required to list ALL debts when you file including student loans even if they are not able to be discharged.

12 hours ago, ladycatsinger said:

I need to talk to my lawyer about it, since I don't want them to put it in the bankruptcy and then have it disallowed and I would be stuck making payments to USA Funds when I was on the IDR plan with no payments with Navient.

You definitely need to speak to the lawyer because there may not be an option with the requirements on the loan insurance and BK.  

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The really strange thing about the USA Funds is that they changed their name to Strada Education Network in March 2017 and no longer services student loans. Navient talks on behalf of USA Funds, but that organization no longer exists. 

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Well Navient still uses USA Funds to hide behind while trying to get answers. Collection agency wont help unless my original guarantor "USA Funds contacts them. All calls get redirected back to Navient, Navient says they are speaking on behalf of USA Funds, but cant change or modify anything because they are not the original guarantor. Navient and Pioneer are up to something, and after some research, I'm finding more shady and unethical practices between the two companies.

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 I have just learned that my student loan held by Navient was paid in full by USA Funds and am told that I need to enter into an agreement with Pioneer Credit Recovery for what I presume is a 'rehabilitation' sort of arrangement such that after 9 timely payments the loan will be purchased by some other unknown party.
Does anyone know about striking a deal with the lender to pay off the loan in full? ..whether they do any sort of dealing on that front or they would expect the full amount of the loan plus the 15%+ collection fee they have just tacked on such that loan is now more than double the amount I borrowed originally.  I want to explore all avenues...
But here's an odd thing...I made the equivalent of 5 payments on my delinquent loan within a two-month period after talking to Navient by phone and being assured that I was nowhere near defaulting on the loan.  Before the last payment was noted as received, the loan was 'paid' by USA Funds and showed a zero balance on the Navient site. I don't know how it is possible that they could tell me one day that I was nowhere near defaulting and then within a few weeks they put me in default.  I remember the agent saying 'no, you're a long way from defaulting...don't worry about THAT."

Yes, I was pretty hazy on my loan details and tended to make lump payments whenever money came into my business. Being self-employed made it tough to keep up with regular monthly payments so I did my best.

I am floored now, and Pioneer is hot on my trail to get me to agree to what I gather is a 'rehabilitation' plan.  I am disincline to do that, but trying to figure this all out. Seems like all three entities involved are in fact Navient.
Anyone have any similar experiences?

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Jeremy...please keep us posted on what you find about Navient/USA Funds/Pioneer Credit Recovery (which is owned by Navient)..
I will share whatever I learn also...

 

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So, 

I have gotten a little further with Navient, although they are still not claiming fault, but Pioneer totally shut me off. They have not responded to my certified letter I sent to them almost 30 days ago, they haven't responded to my BBB complaint, and no response to the Illinois Attorney General. The Illinois Attorney General is sending them a reminder letter.

In the mean time while I am deciding how to go about bring this matter to court, I have started a petition for ones that have suffered the same experience as me. I am asking to only sign it if you have had the same bad experience. Even if you have not had this problem, but know someone that has, please share this link on social media:

Navient petition

https://www.thepetitionsite.com/781/861/319/navient-petition/

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Wow...I didn't know that I wasn't the only one going through this.  Actually, I just realized I got garnished a month ago.  I am quite unclear as to whom I should contact to resolve this matter.  What's interesting is that I've already paid off the loan.  And they hit me with the same amount plus interest!  How's that possible!!!  Also, I pulled out a very comprehensive credit report and it showed no liens, no judgments, and no collections on it.  And the amount of the garnishment is no where on the credit report!  What are my chances of getting this SHUT DOWN!!  It's affecting a lot of aspects in my life right now.:(  A friend of mine told me to contact credit bureaus and report the issue and also call my congressman's office to assist in the matter.  What are your takes on that???  I would love any suggestions you may have!! Thank you.

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On 5/12/2019 at 12:00 AM, Chad H. said:

Wow...I didn't know that I wasn't the only one going through this.  Actually, I just realized I got garnished a month ago.  I am quite unclear as to whom I should contact to resolve this matter.  What's interesting is that I've already paid off the loan.  And they hit me with the same amount plus interest!  How's that possible!!!  Also, I pulled out a very comprehensive credit report and it showed no liens, no judgments, and no collections on it.  And the amount of the garnishment is no where on the credit report!  What are my chances of getting this SHUT DOWN!!  It's affecting a lot of aspects in my life right now.:(  A friend of mine told me to contact credit bureaus and report the issue and also call my congressman's office to assist in the matter.  What are your takes on that???  I would love any suggestions you may have!! Thank you.

The government does not need to get a judgement to garnish and lien property.  If they wrongly seized money that was no longer owed you need an attorney not a useless letter to your congressman.

This thread is a prime example of why one should avoid government backed loans at all costs.

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