Who do I owe and why?

[kalibaybii]

Did you ever apply for loan forgiveness?

I didn't realize it was this loan that was defaulted and with a collector until they sent me this garnishment notice and then sent me info on where it came from 1 month ago. Up until now I've only been contacted by Phoenix about the $1300 I owed them. If I was previously contacted by the collector I must have overlooked it because I didn't recognize the mail. I know I was never contacted by the DofE directly before this went to collections. I would have responded to that.

 

[kalibaybii]

Something is very wrong. The Department of Education made you a loan. You did not get any of that money. By billing you directly for the class that you failed, the University of Phoenix is claiming that they did not get any of the loan money either. Either the University of Phoenix got the money or they didn't. If they did, they should have either returned it to the Department of Education or disbursed it to you (and used 1300.00 of it first to cover your tuition). If they did not receive the money or returned it to the Department of Education, the Department of Education should not be going after you for a loan.

You should be contacting the Department of Education and telling them that you never received a loan and that you are in fact being billed by the University of Phoenix for the tuition for the only class you took with them. You should also be calling the University of Phoenix and demanding an explanation as to why the Department of Education believes that you owe them for a $7000.00 loan when you only took one class with them and they are billing you for the tuition for that. You need to demand that they account for all financial aid transactions that happened on your behalf.

Something is wrong indeed. I have contacted the collector to dispute. They have still proceeded with garnishment notices to my employer. I was able to get in touch with Phoenix and request the info showing where I was withdrawn from school and what class I took and what they are billing me for. Every time I call the DofE directly they recognize my phone number and my social I have to put in and they automatically direct me back to the collector Central Research Inc. I haven't found a way to get through to DofE yet.

 

[kalibaybii]

Did the school receive anything for you?

Not to my knowledge. They told me they withdrew me because DofE won't pay for a class I failed and I can't continue until I pay for that failed class and then retake it and pass it. So it was my understanding that nothing was paid on my behalf. I even called Phoenix and they told me that they've received no funds and are going to mail me an invoice and statement showing that the money I do owe them is now in their collection department with them.

 

[quincy]

Not to my knowledge. They told me they withdrew me because DofE won't pay for a class I failed and I can't continue until I pay for that failed class and then retake it and pass it. So it was my understanding that nothing was paid on my behalf. I even called Phoenix and they told me that they've received no funds and are going to mail me an invoice and statement showing that the money I do owe them is now in their collection department with them.

I recommend you contact a consumer protection attorney in your area and then, after a personal review of the facts by this attorney - and depending on what he says - file a complaint with your state's Attorney General.

If Phoenix was not already the subject of several investigations, there might be more reason to believe that the debt is legitimate. As it stands currently, however, there is greater reason to believe that it isn't.

 

[LdiJ]

Not to my knowledge. They told me they withdrew me because DofE won't pay for a class I failed and I can't continue until I pay for that failed class and then retake it and pass it. So it was my understanding that nothing was paid on my behalf. I even called Phoenix and they told me that they've received no funds and are going to mail me an invoice and statement showing that the money I do owe them is now in their collection department with them.

They need to give you an accounting of your financial aid transactions. They need to prove that they returned the loan funds to the Department of Education.

When you call the department of education stop putting in your phone number and SSN, force your way through to a representative so that you can talk to someone. You might even consider contacting your congressperson or senator's office for assistance if you cannot get through to someone at the Department of Education. You need information about the origination of the loan so that you have proof it went to the U of Phoenix.

 

[quincy]

They need to give you an accounting of your financial aid transactions. They need to prove that they returned the loan funds to the Department of Education.

When you call the department of education stop putting in your phone number and SSN, force your way through to a representative so that you can talk to someone. You might even consider contacting your congressperson or senator's office for assistance if you cannot get through to someone at the Department of Education. You need information about the origination of the loan so that you have proof it went to the U of Phoenix.

Contacting the senator or representative is a good idea.