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Author Topic: Why Direct Loans, Why?!  (Read 23205 times)
bash217
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Posts: 186


« on: July 16, 2012, 1:30:57 AM »

This is kind of a vent, but I would like to know if anyone is having similar weirdness.

Today I received a message/PDF letter at the Direct Loans website about my loans titled, "Status of your repayment plan request." The letter is not based on this subject, but states, "Our records indicate that you are currently enrolled in the Income Contingent Repayment Plan." Then it goes on that I have accrued interest of $651 as of last month on my account, that will be capitalized if I don't pay it in the next 2 weeks.

1. I believe I am on the Income Based Repayment Plan, a key difference here being that on subsidized loans there should be no interest for the first 3 years. I believe I am on IRB because (a) everywhere else on the website it says I am on IRB (on the website itself and on other recent messages), and (b) I went through the lengthy process to renew IRB this last year, and saw at that time that my account status changed from Standard Repayment to IRB.

2. I can't figure out what this $651 is. I have 2 "Groups," the subsidized (a) and unsubsidized (b). Group A shows $0 interest accrued. Group B has $N interest accrued, N being much larger than $651. There has been no capitalization thus far, and I cannot find any random neat and trim $651 that the letter would be referring to.

Same exact thing happened to Mr. Bash, too. Only his accrued interest is a different seemingly random amount.

I would just pay the money, but there is nothing resembling a bill related to this letter, and when I go to pay there is no reference to any $651...I'm pretty sure if I just paid that amount if would just go random bits of accrued interest and/or principal balances and not effect any random capitalization, since nothing on the website apart from this letter seems to correlate.

Anyone good at reading the crystal ball that is Direct Loans Servicing?
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observer3
Senior member
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Posts: 487


« Reply #1 on: July 17, 2012, 3:33:19 AM »

You have no way out but to call them. Note that many loans moved to this group recently (not sure why but hopefully helpful):

https://edfinancial.myloanmanager.com/

I will say that I noticed some confusing things as part of the transfer over. So you just have to call them.
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humanities123
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Posts: 16


« Reply #2 on: July 22, 2012, 12:26:38 AM »

My husband and I both received the same message today - we are both listed on the direct loans website as being under the IBR plan, NOT the ICR plan, and have been paying the same amount for about 2 years now without ever receiving a similar message. Have you spoken with them yet? I'd be interested to hear any additional information, or tips, that you may have!
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erzuliefreda
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Posts: 2,438


« Reply #3 on: July 22, 2012, 12:46:43 AM »

My partner's loans went to edfinancial; mine went to Mohela (http://www.mohela.com/). Because having both in the same place was just too damn convenient, I suppose.
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bama_belle
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Posts: 502


« Reply #4 on: July 26, 2012, 8:42:23 AM »

I am also on the IBR plan and got that message, so I called them yesterday and they said it was simply a mistake on their part, that they sent the message to a ton of people, and to disregard it.

I have a question for y'all: I am on the IBR plan, but my designated monthly payment amount is $0 (Yay for owing 2x what I make it one year! </sarcasm>). When I first asked about changing to IBR, I asked the Customer Service Rep if the $0 payments would still count towards my 120 payments needed for loan forgiveness, and she made it seem as though I would need to make at least some sort of payment each month for it to count. Yesterday when I called, a different Customer Service Rep told me that the $0 payments would count and that even if my payments stayed at $0 for the rest of my 120 payments, my loan would still be forgiven. Have y'all heard anything about this?
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erzuliefreda
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Posts: 2,438


« Reply #5 on: July 26, 2012, 9:31:58 AM »

If we are talking about the Public Loan Forgiveness Program, the details are here. Basically, you have to be employed full-time in a public service job. I had some $0 payments even after I started my TT job, because I kept sending them income statements, but they took a very long time to revise the payments. Those payments are coded on my loan statements as qualifying for the program, but I am skeptical that they will. Adjuncts may find this part useful: "If you are employed in more than one qualifying part-time job simultaneously, you may meet the full-time employment requirement if you work a combined average of at least 30 hours per week with your employers."
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observer3
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Posts: 487


« Reply #6 on: July 29, 2012, 7:16:05 AM »

Does anyone know what happened here? The Direct Loans program was supposed to be through a government agency /Dept of Education. Did they get privatized to bloodthirsty banks or something? Been there, done that, before I consolidated with the Dept of Education. All I ever got out of the banks was a pack of misinformation designed to make me pay more over time, which is why I consolidated with the Dept of Ed. Is that no longer possible?

If not, then we are all *$!@ed.
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jonesey
All-Purpose Savage, Barroom Sociologist, and
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Posts: 6,987


« Reply #7 on: July 29, 2012, 9:36:22 AM »

Does anyone know what happened here? The Direct Loans program was supposed to be through a government agency /Dept of Education. Did they get privatized to bloodthirsty banks or something? Been there, done that, before I consolidated with the Dept of Education. All I ever got out of the banks was a pack of misinformation designed to make me pay more over time, which is why I consolidated with the Dept of Ed. Is that no longer possible?

If not, then we are all *$!@ed.

Mine are all Ed now...managed through Sallie Mae.  Prior to consolidation, Ed had sold my loans to private companies. You might be managed by one of those, depending on the date of your loans and/ot repayment plan.
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Jonesey, I know you're a being of sensitivity and refinement.

Hanging out at the home of leftist zealotry.
glowdart
that's a thing that I keep in the back of my head
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Posts: 5,648


« Reply #8 on: July 29, 2012, 10:01:11 AM »


Does anyone know what happened here? The Direct Loans program was supposed to be through a government agency /Dept of Education. Did they get privatized to bloodthirsty banks or something? Been there, done that, before I consolidated with the Dept of Education. All I ever got out of the banks was a pack of misinformation designed to make me pay more over time, which is why I consolidated with the Dept of Ed. Is that no longer possible?

If not, then we are all *$!@ed.

After they stopped allowing banks to make loans, they started allowing other companies to service loans -- no matter what kind they are.  Thus, my Federal Consolidation Loan, which for years had always serviced with no worries or problems by the Federal Servicing Center, was only recently sent to another company to service and it's been an absolute mess, just like the private servicers were throughout my pre-consolidation years, too.

I keep meaning to go look at my loan documentation and see if there's anything in there about servicing. 
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observer3
Senior member
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Posts: 487


« Reply #9 on: July 30, 2012, 5:32:49 PM »

This makes me unspeakably angry. I put up with years of my loans being sold and resold while I was in grad school. It took months to figure out where they all were (and working through a lot of lies and information) in order to consolidate them with the government, just in time to lock in a reasonable interest rate before another @#$!@ bank bought them. (I received a letter from the private bank that thought it had bought my loan the day after I consolidated - they were going to charge me 2 points more of interest, but I consolidated out from under them just in time, bastards.) Anyone out there who is about to graduate, be warned to take control of your consolidation process before the summer deadline the year you graduate - I think it is sometime end of June / early July.

So now for years I have been happily living in a lie-free Direct Loans government zone, only to now find that some idiot has decided to privatize that by selling off my loans again. When I thought that consolidation meant I had control. Ah how naive I was. At least I don't have much time left to deal with the @$@!*@$s. Makes me want to start the revolution.
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observer3
Senior member
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Posts: 487


« Reply #10 on: July 30, 2012, 5:34:42 PM »

We are frickin' slaves to banks, I swear. And there is no way to escape it if you want a university education and aren't rolling in money. We have a really crap system.
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bash217
Member
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Posts: 186


« Reply #11 on: August 09, 2012, 4:28:48 AM »

Observer3 and all: I share your pain.

My update is that I did get emails (and hubby) saying to disregard the insane messages: "We sent you a message saying X and Y. Both of those are incorrect. Sorry."

I don't know why they keep changing the websites. This cannot possibly achieve anything but ensure more student loan payments get lost or miscalculated, etc. Makes me want to transfer all my debt to a credit card, at least I'd know what was going on, then, and wouldn't get strange totally wrong messages.

As for the $0 payments to PSLF: My understanding is that they are valid.
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observer3
Senior member
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Posts: 487


« Reply #12 on: August 22, 2012, 5:41:57 AM »

In response to why they keep changing websites... the Edfinancial site does not have any place where you can see how long it will take to pay off your loan under the current conditions. As I am close to this I have an interest and keep trying to find it, but I just don't think it is there. Open to suggestions from anyone who has.

With the Direct Loans site this was all very clear and allowed for financial planning. It also allowed people to see just what a hole they were in. I suppose it reduces the potential for social unrest and the occupystudentdebt types to realize their actual situation. But in my book I would just call this just plain deceit. Of course it is in their interest to obscure a debtor's actual situation. But then where are we going as a society?

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observer3
Senior member
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Posts: 487


« Reply #13 on: August 22, 2012, 5:46:52 AM »

... so after my post I tried to open up the Edfinancial site, thinking that I would send them a nice helpful suggestion to make an option for people to see their entire loan schedule.

And behold, I got a 404 not found error. You get this even if you go through the Directloans' redirect.

ARGH!!!! Does anyone know where this website now is? Kafka, meet student debt.

I hate this crap. As if we all have time for it.
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sugaree
shakin' it since 2007 and only a
Distinguished Senior Member
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Posts: 3,868


« Reply #14 on: August 22, 2012, 12:39:54 PM »

While I loathe student loan repayments and was startled by this transfer to Edfinancial Services, I have had no trouble at all with it (after I called to assess that this was a legit transfer of the loan and that Edfinancial was not just a phishing-scam email, of course).

Anyway, I just logged into my account (again) without difficulty and it is up-to-date. The website is http://www.Edfinancial.com/DL
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where's the bourbon?
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