OK... many moons ago I posted about my significant others student loan problems. Basically, he dropped out of a proprietary school early on in the program (he figured out they were bogus pretty quick), but the school still processed loans in his name... way back in the 80s. Everyone involved in this was corrupt, including the school, lender, loan servicer and even the secondary lender... all of them got nailed on some kind of student loan fraud/mishandling. Nevertheless, the loans were guaranteed by the do.ed. long story short, when he found out about them the total was well above 20K with interest and they were in collections. He sent validation letters to the collection agency-- 3 total-- they responded with an application for a loan, etc which included more errors which we pointed out to the collectors. Eventually (by the urging of those on this board), we wrote the ombudsman. They wrote back saying that a local ombudsman would be contacting us. They sent a form for us to fill out for loan discharge. We have not heard again, but the collection letters have stopped and the tradelines were removed from his credit report without our asking. I want to know what is going on, but I am afraid that if we contact them that everything will start up again but I am afraid these darn things are coontinuing to collect interest, etc. .. this makes me nervous. Please advice. Should we let dead dogs lie or contact the ombudsman again?
when a propietary school is involved in student loan fraud (which was really rampant in the 80's) the DOE would not hold student liable for loans (due to fraud) sounds like this is what happened to your SO. Call and see if you can get them to send you something in writing about the loan status. I am almost sure it will be okay. I believe that you can find the law that covers what i am talking about in the HEA.
Thanks for the response uniondiva. OK, I will have him contact the ombudsman again in writing and see what info she can give. Just afraid that this isn't taken care of and they are going to re-start collections. But I guess its best to know one way or the other.
