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URL:  http://boards.fool.com/mismanaged-student-loan-30585533.aspx

Subject:  Mismanaged Student Loan Date:  3/12/2013  3:06 AM
Author:  Dhiana Number:  306836 of 308881

Under a new servicer my student loan has been horribly mismanaged. I'm really at a loss as to how to fix the mess which continually gets worse :(

This is a loan which has been in perfect standing for over 10 years and I had random thoughts of paying it off but never did because it is the only trade line on my credit report other than a credit card.

With no notice it turns out that the servicer changed in Mar of last year. They still took all of the regular payments out until in Aug no payment was removed from my account. I also received what 99.9999% would consider spam email from a company stating they were my loan servicer requesting personal information. Of course it was ignored.

Due to really bad experiences with 1-800 customer service personnel lying and hearing difficulties I sent a letter informing them of their breach of contract. The DOE and I have a contract in place for the payments to be taken out electronically. One of the loans was started back up again in Sept but continues to be "late" because they never took out the Aug payment. The second loan they are refusing to follow the contract. The money is there, waiting for them to follow the contract.

The letter I received back from the new servicer ignored my request for an email contact and gave very confusing information as to why they've stopped taking the payment electronically. Taking it for one and not the other shows they are clearly ignoring the contract in place. The same contract was filled out for both loans.

The electronic payment contract provides an extra .25% discount for my loan so I believe that if I make a check payment I'll be the one in breach of contract and lose my .25% discount.

About 2 weeks ago I contacted the DOE Ombudsman but I have been disappointed so far. My initial contact was limited to 2000 words, took over a week for a weak response which ignored the fact that I stated had more facts to provide. It's been almost a week since my second email to them.

Has anyone had any success working through the DOE Ombudsman program?
Should I get a lawyer to help me through this? It isn't that much money, I have it to pay. It's the damage to what little credit I have which is the problem.

Sorry this is so long, hopefully those here will be able to help me resolve this.
dhiana
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