Sorry, its long:
For the past 3 or for years I have been paying back a student loan that wasn't consolidated with the rest of my loans 5 years ago. It had gone into default and collections before I knew about it.
Once I found out about it, I have been paying a collection agency representing the school every month not missing a payment on the $6,000 loan.
Initially, they told me that there wouldn't be a judgement on the loan since I had contacted them and made the payment arrangements. In December, I consolidated my loans again to include that loan so that I could have all my loans in one place and pay one interest rate.
The lender contacted the school to get a payoff amount and a loan verification form was filled out by someone at the school and sent back to the lender who paid this amount. The check was cashed on Jan. 10 2008 by the school.
Once I confirmed with the lender that they had paid the school, I requested my diploma and transcripts.....which I did recieve.
At the end of January, my bank account was debited for the payment that I had been making. I called the school and they said that the debt had been paid and that I shouldn't be billed anymore.
I contacted the collection agency and they said that the debt had not been paid. I told them that it had and the amount, $5,500.68 and they said that they had not recieved any pay off and that I was still responsible for the payment.
After more prodding by me, the collection agency then went on to say that the $5,500 amount wasn't enough to pay off the loan and that I was still responsible for the rest.
At this point I was fuming because the school said the debt was paid and even released my records, but their collection agency says that it wasn't paid and that I still owed more money.
I stopped the automatic draft from my bank account until I could get this settled.
Now, no one at the school will talk with me about the matter, the collection agent has enacted a judgement on me since I have stopped the payments and the lender is saying that they are all crazy.
What can I do??? Someone please help me! I have MS and the stress of all this has been taking its toll on me.
For the past 3 or for years I have been paying back a student loan that wasn't consolidated with the rest of my loans 5 years ago. It had gone into default and collections before I knew about it.
Once I found out about it, I have been paying a collection agency representing the school every month not missing a payment on the $6,000 loan.
Initially, they told me that there wouldn't be a judgement on the loan since I had contacted them and made the payment arrangements. In December, I consolidated my loans again to include that loan so that I could have all my loans in one place and pay one interest rate.
The lender contacted the school to get a payoff amount and a loan verification form was filled out by someone at the school and sent back to the lender who paid this amount. The check was cashed on Jan. 10 2008 by the school.
Once I confirmed with the lender that they had paid the school, I requested my diploma and transcripts.....which I did recieve.
At the end of January, my bank account was debited for the payment that I had been making. I called the school and they said that the debt had been paid and that I shouldn't be billed anymore.
I contacted the collection agency and they said that the debt had not been paid. I told them that it had and the amount, $5,500.68 and they said that they had not recieved any pay off and that I was still responsible for the payment.
After more prodding by me, the collection agency then went on to say that the $5,500 amount wasn't enough to pay off the loan and that I was still responsible for the rest.
At this point I was fuming because the school said the debt was paid and even released my records, but their collection agency says that it wasn't paid and that I still owed more money.
I stopped the automatic draft from my bank account until I could get this settled.
Now, no one at the school will talk with me about the matter, the collection agent has enacted a judgement on me since I have stopped the payments and the lender is saying that they are all crazy.
What can I do??? Someone please help me! I have MS and the stress of all this has been taking its toll on me.
