Go Back   LegalMatch Free Legal Advice Forums > Bankruptcy Law, Banking and Credit Law Forum > Finances, Credit & Collections
FAQ Members List Calendar Search Today's Posts Mark Forums Read

Find a Lawyer Now By Category:
Family & Divorce Criminal Defense Job & Employment Personal Injury LegalMatch on Facebook
  Real Estate Lawyers Immigration Business Lawyers Other Lawyers LegalMatch on Twitter
LegalMatch is Fast, Free and Confidential
Reply
 
LinkBack Thread Tools Display Modes
Old 07-29-2008, 02:31 AM   #1 (permalink)
Junior Member
 
Join Date: Jul 2008
Posts: 1
Fraudulant Student Loans.....HELP

Back in 1991, I live in SC, I attended a small college, Watterson College, they obtained student laons for me with the understanding that the only reason I was signing for the loans was that the loans were going to be wipe out by my GI Bill. To be done by the college. Needless to say, this never happened, the college, told me I had to pay them $1,200 more or I could not continue attending, yet they put down on my transcript that I graduated with a diploma in Micro Computer Science, that I have never seen. Now the loans that were only $5,000.00, are over $14,000.00, and the lender states that there is nothing that can be done and that I am going to be stuck paing for an education that I did not get. I would love to sue the College, but they filed bankruptcy in yearly 93, which I did not know about till reacently. Any help would be great. Thanks.
bighap01 is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 07-29-2008, 04:48 AM   #2 (permalink)
Senior Member
 
Join Date: Nov 2006
Posts: 3,901
Quote:
Originally Posted by bighap01 View Post
Back in 1991, I live in SC, I attended a small college, Watterson College, they obtained student laons for me with the understanding that the only reason I was signing for the loans was that the loans were going to be wipe out by my GI Bill. To be done by the college. Needless to say, this never happened, the college, told me I had to pay them $1,200 more or I could not continue attending, yet they put down on my transcript that I graduated with a diploma in Micro Computer Science, that I have never seen. Now the loans that were only $5,000.00, are over $14,000.00, and the lender states that there is nothing that can be done and that I am going to be stuck paing for an education that I did not get. I would love to sue the College, but they filed bankruptcy in yearly 93, which I did not know about till reacently. Any help would be great. Thanks.
I, too, live in SC and have attended college, grad school and law school there. My first recourse when I had a problem with a state other than SC ( I guess the process is basically the same for any state though) was to contact the states ombudsman. From there he put me in touch with the proper authorities to pursue my case, which was the [COLOR=black]College Student Aid Commission in that particular state. [/COLOR]

In my situation, the school neglected to take my student loan funds made available through the federal government. So, when I went to register for my second term, they should have stopped me and said, "Hey, we never receive payment for the first term". Note--the money did not ever come TO me--it wen't from Student Loan Corp directly TO the school. It wasn't my responsibility to pay. Therefore, instead of TELLING me they screwed up, the "padded" future billings to my student loan company to make up for the amount they "forgot" to collect. When I withdrew and went to another school, suddenly they sent me a bill for six thousand dollars, and finally admitted their 'oversight'. My position was --it wasn't my job to make sure they TOOK the money. It was THEIR job to take the money, and when they realized they didn't, make me aware of the problem right away so I could FIX it at the time--not two years later.

The school is still very much in existence and they lost when I sued. I did not have to repay that amount of my school bill that they neglected to take, only my student loans from a third party. But since your school is bankrupt, you cannot get money from them, in all probability.

However, your student loans aren't WITH the school. They are with a third party, right? These must be repaid no matter what--since you signed the documents----although I have to admit, I am not sure what you mean by signing a student loan to cancel out another. Once those documents are signed, its a long road to get that "undone". It may cost you more money to hire an attorney than it would be just to pay it. Also, after all these years? I am not sure how you could prove any of this.

Call your ombudsman and ask if he knows of who handles complaints like this or if there is a South Carolina [COLOR=#000080][COLOR=black]College Student Aid Commission.[/COLOR][/COLOR]
__________________
[COLOR=magenta][COLOR=blue]G[/COLOR][COLOR=darkorchid]r[/COLOR][COLOR=darkslategray]a[/COLOR][COLOR=orange]c[/COLOR][COLOR=seagreen]e[/COLOR][/COLOR]

[COLOR=black]To [COLOR=blue]ERR [/COLOR]is human.[/COLOR]
To [COLOR=darkorchid]FORGIVE [/COLOR]is divine.
[FONT=Comic Sans MS][FONT=Times New Roman][COLOR=red]NEITHER[/COLOR] is my policy.[/FONT] [/FONT]

Last edited by GentleGrace; 07-30-2008 at 05:16 PM.
GentleGrace is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 07-31-2008, 11:48 PM   #3 (permalink)
Junior Member
 
Join Date: Jul 2008
Posts: 3
I'm not an attorney. My neighbor had some old student loans reappear that were past limits to collect. I guess if the loans have been sold, the same obligations don't apply. It's tricky sometimes. Of course this may vary with your state - but do your research.
aikanae is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 08-01-2008, 04:51 AM   #4 (permalink)
Senior Member
 
Join Date: Nov 2006
Posts: 3,901
Unless privately obtained ( personal loans), student loans are government loans and , even if they are bought and sold between companies, they still must be repaid.

That doesn't mean the posters do, I am just speaking in general terms. Government student loans must be repaid--period.

Also of interest is that the posters situation has been going on for almost eighteen years and it has not been addressed yet. I am sure this has affected him credit wise---student loans are an absolute MUST REPAY bill----the govt can go to great lengths to get repaid for these---I also have questions about getting a loan to cancel out the GI Bill---that, too , make no sense.

I suspect there is more to this than is relayed here. Schools do not obtain loans on behalf of students---those agreements are entered into BY the student and he/she is responsible for them---the school receives the money, but only AFTER the student has borrowed the money.
__________________
[COLOR=magenta][COLOR=blue]G[/COLOR][COLOR=darkorchid]r[/COLOR][COLOR=darkslategray]a[/COLOR][COLOR=orange]c[/COLOR][COLOR=seagreen]e[/COLOR][/COLOR]

[COLOR=black]To [COLOR=blue]ERR [/COLOR]is human.[/COLOR]
To [COLOR=darkorchid]FORGIVE [/COLOR]is divine.
[FONT=Comic Sans MS][FONT=Times New Roman][COLOR=red]NEITHER[/COLOR] is my policy.[/FONT] [/FONT]
GentleGrace is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 10-02-2008, 05:04 PM   #5 (permalink)
Senior Member
 
Join Date: Aug 2008
Posts: 662
Grace, Things have changed. Schools DO the paperwork and they DO get the money and they DO disburse the money. So if there is a problem with their accounting or that they HAVE gone bankrupt, you still have a government loan. But I'm not understanding why you have not gone to the folks at Veterans affairs as to why you did not have your student loan wiped out by funds you were entitled to as a veteran....?????
boykinmama is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 07-25-2012, 04:33 PM   #6 (permalink)
Junior Member
 
Join Date: Jul 2012
Posts: 1
waterson lies

back in 1992 I went to waterson for about 4 weeks when i found out though i had made deans an directors list my courses were worthless for transfer to any other school
I decided to withdraw from the school and try to go to trident tech
there the credits were able to transfer anywhere the fees for the courses i had taken in there small 4 weeks semesters were over and a new set of pell and loans were soon to come out in the next semester so I figured I would be able to go to tech the next semester with no problems
the day I went in to quit i told the director of the school what I was doing and she said well in order for you to pay us off and walk out free and clear you have to sign your pell grant and since you only went 4 weeks you only used about $1200 which was what my pell grant was for she got me to sign what she told me was the pell grant and i went on my merry way A couple months later when I went to the trident tech registration I was told I was inelageable to get pell because i had returned a pell grant at waterson with out using it .
I was very confused and I proceeded to check in to this . I asked waterson what had I signed and they said they didn't know but they really did they had returned my pell and used my loan. which I later read was incorrect process in there papers as well as what the people at tech told me that was also not right they are supposed to use your grant first then your loans so as not to cause you to pay more in loans that need be.
after 20 yrs I still have this loan floating over my head i refused to pay it I tried to fight the college about it I missed a class action suit with them by just a week . I told this to the current owner of my loans . they have sold the loans over and over I have deferred them several times and I just stopped bothering with it it has kept me from ever having a home or car loan but I haven't ever paid a dime on it they took my taxes a few years but now it is like well at last couldn't about $5000 and i am not paying it for 4 weeks in a school that was lying about being accredited and shouldn't have used the loan in the first place.
any suggestions
akaroe is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Old 10-08-2012, 01:40 PM   #7 (permalink)
Junior Member
 
Join Date: Sep 2012
Posts: 30
If they went into bankruptcy there is not much you can do here is an article explaining how bankruptcy works http://www.legalmatch.com/law-librar...y-lawyers.html . You would have had a hard enough time trying to sue the school for loans it would be difficult case, but you may have won however there is no money to be had and this would be based on something that occurred prior to bankruptcy so your interest is pretty much gone.

Once bankruptcy occurs the debts are wiped out and that is the case even if you had a judgment in place. The statute of limitations has probably run as well so although this sounds like a really sad situation I don't think there is a lot you can do. However, I am just an anonymous internet poster so take my advice with a grain of salt and feel free to seek legal representation. Your state bar's website or legalmatch can help you find someone. Sorry to hear about the situation sounds terrible.
chicocats is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On




All times are GMT -7. The time now is 03:35 AM.


Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.
SEO by vBSEO 3.1.0
Copyright ©1999-2008 LegalMatch. All rights reserved. LegalMatch®, the LegalMatch
logo, and the tradedress are trademarks of LegalMatch. Patents Pending.