Hi-
My wife had 4 school loans totaling $14K from 2009-2011. We were paying the minimum until March 2013 we pay it in full. We received the paid in full (PIF) letter for the 4 loans. Four months later we rcvd another letter stating we still owed $1220. When we contested this they could not provide a clear explanation except that the Dept of Ed had stated the loan amount for 1 of the loans was wrong, they were to reopen the loan and to collect the remainder owed. When we did the math using the information posted on the federal loan website indicating payment disbursements towards principle and interest we found we paid more than $14K on the principle alone, this was also brought to their attention. Finally 8 months after the PIF letters were rcvd they provided clarification in that the original loan payments had been re-distributed reducing the amount applied to the principle by approximately $900 with the rest being interest accrued over 3 years. We have requested the revised accounting figures at least twice but they have failed to produce it for our review.
We are a military family and currently stationed overseas which further complicates things. I am the active duty member and she is the dependent. We have military JAG counsel but he is not that familiar with student loan issues. We return stateside this summer, ironically for me to attend law school.
Is there any recourse we have in this situation? I know in some cases we can appeal decisions but not sure if this applies to a decision like this for a student loan. We are not trying to get out of paying the loan but feel that since the error was on their end not ours they should accept some of the responsibility. We are amiable to paying the interest over 3 years on the 1000 but not an additional 1000 since the error had been unnoticed until we attempted to pay it off. I can't imagine what it would of been like if we had waited 10 years.
Thanks in advance
My wife had 4 school loans totaling $14K from 2009-2011. We were paying the minimum until March 2013 we pay it in full. We received the paid in full (PIF) letter for the 4 loans. Four months later we rcvd another letter stating we still owed $1220. When we contested this they could not provide a clear explanation except that the Dept of Ed had stated the loan amount for 1 of the loans was wrong, they were to reopen the loan and to collect the remainder owed. When we did the math using the information posted on the federal loan website indicating payment disbursements towards principle and interest we found we paid more than $14K on the principle alone, this was also brought to their attention. Finally 8 months after the PIF letters were rcvd they provided clarification in that the original loan payments had been re-distributed reducing the amount applied to the principle by approximately $900 with the rest being interest accrued over 3 years. We have requested the revised accounting figures at least twice but they have failed to produce it for our review.
We are a military family and currently stationed overseas which further complicates things. I am the active duty member and she is the dependent. We have military JAG counsel but he is not that familiar with student loan issues. We return stateside this summer, ironically for me to attend law school.
Is there any recourse we have in this situation? I know in some cases we can appeal decisions but not sure if this applies to a decision like this for a student loan. We are not trying to get out of paying the loan but feel that since the error was on their end not ours they should accept some of the responsibility. We are amiable to paying the interest over 3 years on the 1000 but not an additional 1000 since the error had been unnoticed until we attempted to pay it off. I can't imagine what it would of been like if we had waited 10 years.
Thanks in advance
