Residual Student Loan Fees

[plchenn]

What is the name of your state (only U.S. law)? California

I had a student loan in the 1980's that was completely paid off. However, I recently applied for a new student loan and was informed that I had a small amount owing in the amount of less than $100.00.

I told that Department of Education that the loan was paid off and that they had access to tax returns and current address to inform me of the remaining debt. The Department of Education's reply was that the small amount of the loan did not justify collection efforts and administrative costs. Therefore, they ceased collection efforts.

I responded to the Department of Education's reply by stating that the loan was invalid and non-collectible since they stated that it not justify collection efforts based on the small amount. The Department of Education responded that since I applied for a new loan, I re-established the debt and that I still owed the remaining amount. In addition, the Department of Education stated that I should have informed them of my current address and I should have periodically accessed my student loan information to determine my loan debt status.

 

[CSO286]

What is the name of your state (only U.S. law)? California

I had a student loan in the 1980's that was completely paid off. However, I recently applied for a new student loan and was informed that I had a small amount owing in the amount of less than $100.00.

I told that Department of Education that the loan was paid off and that they had access to tax returns and current address to inform me of the remaining debt. The Department of Education's reply was that the small amount of the loan did not justify collection efforts and administrative costs. Therefore, they ceased collection efforts.

I responded to the Department of Education's reply by stating that the loan was invalid and non-collectible since they stated that it not justify collection efforts based on the small amount. The Department of Education responded that since I applied for a new loan, I re-established the debt and that I still owed the remaining amount. In addition, the Department of Education stated that I should have informed them of my current address and I should have periodically accessed my student loan information to determine my loan debt status.

What proof do you have that the loan was completely paid off?

 

[Antigone*]

What is the name of your state (only U.S. law)? California

I had a student loan in the 1980's that was completely paid off. However, I recently applied for a new student loan and was informed that I had a small amount owing in the amount of less than $100.00.

I told that Department of Education that the loan was paid off and that they had access to tax returns and current address to inform me of the remaining debt. The Department of Education's reply was that the small amount of the loan did not justify collection efforts and administrative costs. Therefore, they ceased collection efforts.

I responded to the Department of Education's reply by stating that the loan was invalid and non-collectible since they stated that it not justify collection efforts based on the small amount. The Department of Education responded that since I applied for a new loan, I re-established the debt and that I still owed the remaining amount. In addition, the Department of Education stated that I should have informed them of my current address and I should have periodically accessed my student loan information to determine my loan debt status.

So what is your beef. If you want the new student loan, pay the old one off. Period, end of story.

 

[Zigner]

What is the name of your state (only U.S. law)? California

I had a student loan in the 1980's that was completely paid off. However, I recently applied for a new student loan and was informed that I had a small amount owing in the amount of less than $100.00.

I told that Department of Education that the loan was paid off and that they had access to tax returns and current address to inform me of the remaining debt. The Department of Education's reply was that the small amount of the loan did not justify collection efforts and administrative costs. Therefore, they ceased collection efforts.

I responded to the Department of Education's reply by stating that the loan was invalid and non-collectible since they stated that it not justify collection efforts based on the small amount. The Department of Education responded that since I applied for a new loan, I re-established the debt and that I still owed the remaining amount. In addition, the Department of Education stated that I should have informed them of my current address and I should have periodically accessed my student loan information to determine my loan debt status.

Did you have a question?


I suggest you pay the <$100 and move on with your life. Or, you can simply not get a loan. Your choice. The fact they ceased collection efforts does NOT mean that the debt goes away.

 

[Humusluvr]

I would also note that, since you "re-opened" the debt, it will now impact your credit report. If you don't pay it, don't try to get a loan, mortgage, or credit card. Your interest rate will be spectacular.