Hi:

As near as I can tell, the facts I of my case are:



1) In Sep 1993, I enrolled at University A and applied for a Stafford Loan from Bank A.
2) I never received any indication that the loan had been approved.
3) Due to financial reasons, I was only able to remain in school for one semester and withdrew in Dec 1993.
4) At some point in time, Bank A approved the loan and in May 1994 (5 months after I withdrew from school), Bank A issued a disbursement to University A and University A posted the disbursement to my account. Note: If the funds were sent via a paper check, I did not endorse the check! If they were sent electronically, not sure if I signed something allowing the University to accept the funds (can't remember).
5) Bank A never contacted me (never told me that the loan was approved, never attempted to collect).
6) At some point in time Bank A sold or transferred the loan to a Student Loan servicing company and that company is now trying to collect. Also, the servicing company reports just over $2,000 in principal + $800 in interest, but the amount disbursed by Bank A in May 1994 was less than $1,400.

The Student Loan Servicing Company did provide me with a copy of the signed loan application. They have not provided any records of actual disbursements made on the account (I can only report that the University shows the disbursement posted to my student account in May 1994).

So, it is my claim that:
1) Bank A disbursed the funds 5 months after I withdrew from school (i.e., at a time when I was not a full time student and not eligible for aid).
2) University A accepted the funds at a time when I was not a full time student and not eligible for aid.
3) The Student Loan Servicing Company is attempting to collect approximately $600 more in principal alone than what was originally disbursed.

Do I have a case for getting this dismissed altogether and removed from my credit report?
Thanks for your advice.