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Student loan

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I would like to add on a little more information, the school I attended was found guilty of embezzlement of student loans and order to repay. So my discharge with DOE was for not receiving refund from school because I attended less than 50 percent. Now the reason I did not know anything about this part of the loan was because they never sent me anything. And now the original lender (Citibank) sold the debt to another company and that company said there's no way or reason that I can give to have the loan discharge. If your anything else I can do. Do they still need to abide by the reasons for discharge? And also why only now had tried to contact me because all this time I only dealt with DOE. because This is a different loan Would the statue limitations apply now since it is over 13 years old.

Thank you once again,


Senior Member
I'm confused.

- You got a student loan from the Dept. of Ed.
- The DOE discharged the loan 13 years ago. Did they discharge the entire amount ?

I guess I don't understand, if the DOE discharged the loan, how is it you would still owe CitiBank ?

Perhaps another member will chime in here ... sorry :(


I found this on the Dept of Ed site:

"What happens if my application for discharge is approved?
If you qualify for a complete discharge of your loan, you are no longer obligated to make any payments on the loan. The holder of the promissory note will refund to you all monies that you paid on the loan, including any late charges and collection fees. In addition, the holder of the loan will delete any adverse credit record related to a default on the loan, and no tax refund offset or wage garnishment will take place to collect the loan. If the loan was in default, the discharge erases the default status—if you have no other defaulted loans, you regain eligibility for federal student aid. (Note that only a portion of your loan will be cancelled for an unpaid refund and you will be responsible for paying the remaining amount on the loan.) "

Is this what you're referring to as 'the other part' of the loan.. was there a portion of the loan that was NOT cancelled ??
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Sorry, but we try to explain further:

13 years ago not knowing what I was getting myself into "Hawaii transportation systems" the school in question. I later found out through court documents that this school was getting students to apply for student loans (not knowing what we were doing) and apparently having us sign out two loans one from the Department of Education and one from Citibank. Half was classroom and half was field. The field training was set up such that it was impossible for anyone to get there without a car. Because at the start of school we were told we would have transportation. Because there were no transportation many of us had to postpone the second half the class. And now instead of refunding us the second half they were pocketed the money. As far as the second loan I found out about a month ago. Because I had no contact with them at all, only DOE. Eight months ago, DOE started to garnish by check, so I filed claim for discharge and was approved. Apparently Citibank has sold the debt to someone else and trying to claim on it.
Is there any law that can help me? I'm looking at almost $4000 for a school did not benefit from. And as the owner was convicted of doing so. I never even saw the money is far as I knew I was signing a loan for about $3500 not almost $8000. Is there a law to protect the consumer. The collectors say there's no way they will or have reason for them to discharge this loan. Because I thought those reasons for discharge were protections for the consumer. Are they exempt from this law? Or would statute of limitations apply in this case.
I really appreciate all of your time thank you


Student loans

Greetings, Im a student right now on loans, hopefully i can help. First, If you take a government guarenteed loans and do not finish over 50% of you classes you can/will be made to pay all the loans and grants back. Second, If you signed the loans you will be required to pay them back unless you can prove fraud etc. like in your case with DOE. You should have your loan papers<look and see what you signed and for how much> If you do not have them, you need to request (by certified mail) all the loan documents you signed from the creditors. They are required to give this to you. Im guessing the loan from citi bank is a federally insured/ guarenteed loan, a stafford type loan. This mean the government guarentees citi bank that you will pay them back. If you recieved the money, im pretty dang sure you will have to pay them back.
I didnt understand all your issues so if these dont apply im sorry.




Here is a summary in a nutshell,

the school I attended were ripping people off. By having them sign up for the course, then find a reason to either suspend or in my case I was unable to get to the training area (and they were supposed to supply transportation). And the school was actually into parts for Smart was classroom training, and the second was hands-on training. This hands-on training was scheduled between 8 PM and 1:30 AM and the buses stop running around 12 PM so for a majority of us we would have been stuck in the middle of nowhere a few months later I received some court documents basically stating that he was found guilty (fraudulent use of student loan funds) because when people left instead of returning the unused portion of the student loan be pocketed the money. Also the school closed. He was also ordered to pay back something like $482,000. And one more question, can they collect from me after 13 years? (They ever tried before.

Thank you very much,

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