Excessive charged interest

General
#1

I have been getting the run around from FedLoans for some time. I’ve paid over 95,000 on an original loan amount of just over 110,000. It shows I still owe 105,000. I have been denied PSLF and TPSLF (teacher) because I was in an extended payment plan (only available when I consolodated 10 years ago). Never missed a payment, but I can’t get anyone to audit these. I’ve paid about 85,000 in interest, which seems abusive.

Anyone else have this experience? Should I hire a forensic accountant? Emails to FedLoans have gone ignored.

#2

I am with fedloan as well, yes hire a forensic accountant. Your story is very common many have said the same thing about the interests, you keep paying and it never goes down, its like your paying in limbo. The Federal government did it like this on purpose in my opinion, student loan interests accrues every single day and that is stupid and unfair, it makes absolutely no sense, and you cannot even discharge it in bankruptcy court, my question is why? What makes student loans so special that it is excluded from bankruptcy?
I don’t hate the guy but how many bankruptcies has trump had?(I’ve lost count) and let us not forget Trump university(he had to settle in court with the scammed students), it’s all a big joke, the whole system is unfair against common folk.

1 Like
#3

I guess the first step would be to log into your FedLoan account and download a full payment history. Since you consolidated your loans 10 years ago, it would also be helpful to contact whoever serviced those loans before the consolidation for a complete payment history as well. You don’t need a forensic accountant, you just need a payment history in order to tell what is going on. The interest may be unethical and ridiculous, but unless you can document something that is an error or improper it is likely that this ridiculous interest rate is perfectly legal.

The PSLF & TPSLF denials are a separate issue. You can file a complaint with the CFPB and your state attorney general. Beyond that we need to organize. There is no silver bullet. We have to build power and fight back to cancel debt for everyone.

#4

Thanks Thomas. I’m not sure how to get the old accounting. I actually recently re-consolidated under FedLoan to support my loan forgiveness application. What I found interesting with those is that when you do a comparison of repayment plans, those that qualify would result in a zero forgiveness amount given the payment terms. I would assume this is purposeful. Create a policy that appears like it is benefiting borrowers, but that really only provides benefits for those borrowers with low debt amounts (if any). So it makes no sense for me to apply. Very sly use of the rules.