Who do I owe and why?

[kalibaybii]

SC
So I received a notice of garnishment from the Dept. of Edu. stating I owe them $7000 from my loan for courses at Phoenix University back in 2016. The problem with that is I took one class, and then the school withdrew me because I failed that class... stating that the DofE won't pay for courses I failed, and that I had to pay for that failed course before I was allowed to continue any other classes. Phoenix has sent my charges for that one class to a collector at this point, totaling about $1300. If I owe Phoenix $1300 for a course before I can take anymore, how is it that I still owe the DofE for the entire semester? And this wasn't a matter of I didn't withdraw properly or on time.... they withdrew me because I didn't pass the course. Or at least that's what was explained to me. So far I've disputed the garnishment notice from the DofE and advised them I didn't complete course or receive any checks/cash from them. I've also asked Phoenix for an invoice and statement and also a letter regarding my withdrawn status. What else, if anything else, can I do to get out of this garnishment?

 

[Ohiogal]

SC
So I received a notice of garnishment from the Dept. of Edu. stating I owe them $7000 from my loan for courses at Phoenix University back in 2016. The problem with that is I took one class, and then the school withdrew me because I failed that class... stating that the DofE won't pay for courses I failed, and that I had to pay for that failed course before I was allowed to continue any other classes. Phoenix has sent my charges for that one class to a collector at this point, totaling about $1300. If I owe Phoenix $1300 for a course before I can take anymore, how is it that I still owe the DofE for the entire semester? And this wasn't a matter of I didn't withdraw properly or on time.... they withdrew me because I didn't pass the course. Or at least that's what was explained to me. So far I've disputed the garnishment notice from the DofE and advised them I didn't complete course or receive any checks/cash from them. I've also asked Phoenix for an invoice and statement and also a letter regarding my withdrawn status. What else, if anything else, can I do to get out of this garnishment?

Did you receive student loans?

 

[quincy]

SC
So I received a notice of garnishment from the Dept. of Edu. stating I owe them $7000 from my loan for courses at Phoenix University back in 2016. The problem with that is I took one class, and then the school withdrew me because I failed that class... stating that the DofE won't pay for courses I failed, and that I had to pay for that failed course before I was allowed to continue any other classes. Phoenix has sent my charges for that one class to a collector at this point, totaling about $1300. If I owe Phoenix $1300 for a course before I can take anymore, how is it that I still owe the DofE for the entire semester? And this wasn't a matter of I didn't withdraw properly or on time.... they withdrew me because I didn't pass the course. Or at least that's what was explained to me. So far I've disputed the garnishment notice from the DofE and advised them I didn't complete course or receive any checks/cash from them. I've also asked Phoenix for an invoice and statement and also a letter regarding my withdrawn status. What else, if anything else, can I do to get out of this garnishment?

Did you ever apply for loan forgiveness?

 

[NeilTheCop]

Did you by any chance ignore the letters from the debt collection agency?

 

[LdiJ]

SC
So I received a notice of garnishment from the Dept. of Edu. stating I owe them $7000 from my loan for courses at Phoenix University back in 2016. The problem with that is I took one class, and then the school withdrew me because I failed that class... stating that the DofE won't pay for courses I failed, and that I had to pay for that failed course before I was allowed to continue any other classes. Phoenix has sent my charges for that one class to a collector at this point, totaling about $1300. If I owe Phoenix $1300 for a course before I can take anymore, how is it that I still owe the DofE for the entire semester? And this wasn't a matter of I didn't withdraw properly or on time.... they withdrew me because I didn't pass the course. Or at least that's what was explained to me. So far I've disputed the garnishment notice from the DofE and advised them I didn't complete course or receive any checks/cash from them. I've also asked Phoenix for an invoice and statement and also a letter regarding my withdrawn status. What else, if anything else, can I do to get out of this garnishment?

Let me make sure that I understand this properly.

You are stating that the Department of Education said that you had a loan for $7000.00

You are stating that your tuition was for one course only for $1300.00

You are stating that you did NOT get a financial aid refund of the difference between the loan and the tuition ($7000.00-$1300.00=$5700.00)

The first thing I would be doing is asking the University of Phoenix to explain where that $5700.00 went.

 

[quincy]

The University of Phoenix is one of the for-profit schools that, like the ITT Techs, has been investigated by the FTC for deceptive and unfair business practices.

 

[NeilTheCop]

Let me make sure that I understand this properly.

You are stating that the Department of Education said that you had a loan for $7000.00

You are stating that your tuition was for one course only for $1300.00

You are stating that you did NOT get a financial aid refund of the difference between the loan and the tuition ($7000.00-$1300.00=$5700.00)

The first thing I would be doing is asking the University of Phoenix to explain where that $5700.00 went.

That's why I asked about the debt collection agency who have been known to add on late fees and charges to what is actually owed.

 

[quincy]

Here is a link to an August 24, 2018, Associated Press article published in the Indianapolis Business Journal that speaks to some of the ongoing FTC and state investigations, and lawsuits against, for-profit schools:

https://www.ibj.com/articles/70241-for-profit-colleges-have-more-support-but-complaints-persist

 

[LdiJ]

That's why I asked about the debt collection agency who have been known to add on late fees and charges to what is actually owed.

Yes, but his notice did not come from a collection agency, it came direct from the Department of Education as far as the $7000.00 loan is concerned. Its the 1300.00 tuition that the University of Phoenix sent to collections.

In fact, now that I think about it, I think that the University of Phoenix need to account for the entire $7000.00 loan.

 

[quincy]

Yes, but his notice did not come from a collection agency, it came direct from the Department of Education as far as the $7000.00 loan is concerned. Its the 1300.00 tuition that the University of Phoenix sent to collections.

In fact, now that I think about it, I think that the University of Phoenix need to account for the entire $7000.00 loan.

I think the source of the problem is the University of Phoenix.

A complaint can be filed with the SC AG.

 

[kalibaybii]

Let me make sure that I understand this properly.

You are stating that the Department of Education said that you had a loan for $7000.00

You are stating that your tuition was for one course only for $1300.00

You are stating that you did NOT get a financial aid refund of the difference between the loan and the tuition ($7000.00-$1300.00=$5700.00)

The first thing I would be doing is asking the University of Phoenix to explain where that $5700.00 went.

Right. I signed up for classes. The Loan I applied for was $5300 and change before repayment fees, interest, etc. I got through one class. I failed it. Phoenix billed me directly for that class - $1300. I received NO cash or anything for any difference... nothing. I have only heard from Phoenix in these 2 years until the Department of Education's collector contacts me about a default loan I have with them for $7000 (fees and interest included) and they have since sent a garnishment notice to my employer. They plan on implementing it on 1.25.19. I may have gotten prior notices(I've moved quite a bit in 2 years) but they were coming from Central Research Inc. and not the Department of Education so I'm sure I overlooked those not knowing what it was for until just recently. In the last month when I got this wage garnishment notice and disputed it then they sent something back saying it was from Phoenix.

 

[kalibaybii]

Did you receive student loans?

I applied. I never personally received anything.

 

[kalibaybii]

Did you by any chance ignore the letters from the debt collection agency?

To be honest I may have. But it's odd.... Just in 2018 I started getting letters from CRI. didn't know what it was for but I ignored it instead of calling. Then this fall I get a letter from DofE and so I call and they refer me to collector CRI(Central Research Inc). So my first encounter with this was the collector. I have moved like 3 times since 2016, but still.... I've updated my address with the post office so I don't know why I wasn't hearing of this before now. The only debt I was aware I owed was directly to Phoenix for the class I failed.

 

[Just Blue]

I applied. I never personally received anything.

Did the school receive anything for you?

 

[LdiJ]

To be honest I may have. But it's odd.... Just in 2018 I started getting letters from CRI. didn't know what it was for but I ignored it instead of calling. Then this fall I get a letter from DofE and so I call and they refer me to collector CRI(Central Research Inc). So my first encounter with this was the collector. I have moved like 3 times since 2016, but still.... I've updated my address with the post office so I don't know why I wasn't hearing of this before now. The only debt I was aware I owed was directly to Phoenix for the class I failed.

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.