Skip to main content
This Board Has Moved

This board has been migrated to our new platform! Check out the new home page at or click below to go directly to the new Board on the new site.

Go to the New Site
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Thank you everyone for your thoughts about my earlier grace period problem. And now I have but yet another...

So here I am with my lender: by their standards, I "left school" at the end of April 1998. However, I actually graduated at the end of June 1998, but never lender started my grace period at the end of April when I finished classes and ended it in October 1998.

The thing is by October, I was already involved in a graduate fellowship (actually beginning August 1998) for which I sent in a deferment. Somehow, my deferment form got lost, and I was charged "administrative forebearance" fees on Stafford loans from October 1998 to February 1999 (when they say they finally got the form). I was never informed of these forebearance fees or the fact that I had been in forebearance at all by my loan company.

My own memory is that I vaguely remember there was an issue with my deferment. I remember that I had sent the company a deferment form (in August when I got the fellowship), and later faxed several duplicates and sent but yet another hard copy. It took some time to register the deferment in my account. When I called I remember they got it. But now I know they counted it only from the beginning of February-even though the deferment says something different- from the beginning of August 1998 -I have a copy.

Meanwhile, I thought everything was fine until I began really looking over my loan amounts recently (because now I'm thinking about payment and consolidation). So I called my loan company to ask why I had fees beyond the Stafford (subsidized) loan amounts. First I was told that it was interest, and I informed the person that I was talking to that the federal goverment pays the interest while I am in school, so that couldn't be correct. Then I was told about the administrative forbearance.

I asked how to correct this. And I was told that if I sent in a corrected deferment with the appropriate dates than the forebearance would be correced. I did this at the beginning of this week. Tonight I called and the company recieved the fax. But they are unwilling to accept it because they are under "no obligation by federal law via the Higher Education Act" to update a file "beyond a 6 month period." The person I talked to even suggested that it made no difference that I had been in forebearance. I said that it did because 1) I had additional fees and 2) being in forebearance likely made a difference in terms of interest rates with consolidation and my general credit. Is this crazy or what?

So I asked to speak to a supervisor. The guy I talked to said the supervisor would tell me the same thing. But I persisted and asked to talk to someone anyway. And surprise, no one could talk to me. They'll call me later. I think I experienced this when dating...

I don't think I being overly hostile. I'm just asking questions, and trying to find out information. I'm also pretty darn upset right now...All of you who were so helpful earlier, I hope you read these things regularly.

Thanks in advance for any ideas!

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.