I have been involved in an ongoing dispute with USA Funds since 1999. They defaulted a loan, while I was in school (i.e., entitled to an in-school deferment). Instead of arguing with them, I simply rolled the loan in question in the consolodation loan that I was doing at the time. However, they continue to report the loans as charged-off. I have asked for the information relating specifically to how they arrived at the default decision, but so far, I have gotten everything related to the loans except that. Now my question: in the last batch of stuff they sent, they stated that the Higher Education Act requires them to report this for seven years. I'm a law student, and no slouch when it comes to legal research, but I can't find anything like that in the text of the statute. Does anyone know where it is? I think I'm about to accuse them of making that up, but I want to be sure first... Anybody have any ideas? Regards.
Hi Dalaggie, I'm sure it's not even in there. These people make this crap up just so they don't have to deal with you, not knowing, of course, that you're a law student. The time period for reporting is in the FCRA, as you know. If it were to refer to another Act or Statute, they'd say so. woops. LOL Go get em.
Yeah, that's my thinking too. And get this...I had forgotten this, but a while ago (before this incident), they had defaulted another loan, but nearly tripped over themselves backtracking when Sen. Phil Gramm's office called them wanting to know what the hell they were doing. When they sent this most recent information, they included those documents. I also found a report by the Department of Education's Inspector General that questions their practices and states that USA Funds may have an inherent conflict of interest because they service loans they guarantee...apparently it encourages them to default loans in order to collect additional fees and stuff (If anyone needs the report, let me know). I think that I can paint a pretty nasty picture of their incompetence and corruption, even if its only circumstantial.
1. The reporting periods have been lengthened for certain adverse information pertaining to U.S. Government insured or guaranteed student loans, or pertaining to national direct student loans. See sections 430A(f) and 463(c)(3) of the Higher Education Act of 1965, 20 U.S.C. 1080a(f) and 20 U.S.C. 1087cc(c)(3), respectively. Found this as a footnote to the FCRA. Don't know if its what you are/aren't looking for.
Re: Re: HEA Requires Derog for 7 Years? OK, I can't find it. The copy that I have doesn't have footnotes. The copy of the HEA will not show these pieces of info. There was a thread here that explained exactly what they could report, and I can't find it! Anyone know? BUMP
Re: Re: HEA Requires Derog for 7 Years? http://uscode.house.gov/uscode-cgi/...1+0++() AND (USC w/10 (1080a)):CITE http://uscode.house.gov/uscode-cgi/...+1++() AND (USC w/10 (1087cc)):CITE Goofy looking links, if they don't work, go here: http://uscode.house.gov/usc.htm and where it says "Section", type in 1080a and 1087cc, click on the result for Chapter 20, and that should bring you to the above. Good luck!
