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US Education Department

Vanessa of Houston, TX April 28, 2009

I am seeking the assistance of the Department of Justice in regards to a debt I have incurred with the Department of Education. The Department of Education has wrongfully placed my loans in default status, which has caused me to lose the ability to obtain grants for which I qualify in order to continue my education. I have tried to work with the Department of Education, providing them all the information they have requested, as well as taking steps that they have requested in order to have my loans taken out of default status. In December of 2006, I filed for Bankruptcy at that time I was in school, my loans were deferred and not due for payments. When my case was filed, the Department of Education was listed as a creditor; and after reviewing, the documents provided to me by my attorney’s paralegal, the Department was included on the mailing matrix. The Department is saying that they were never were not notified of the case.

I never heard from the Department of Education regarding my loans to indicate they were going to place my loans in default status. I heard from Citibank regarding my loans and I informed them at the time of the call that I had filed for bankruptcy and did not believe they were supposed to be collecting on my loans during a time when my bankruptcy was in active status. I was told that I needed to file for forbearance in order to protect my loans. I did so at that time. Those were the only loans I was made aware of needed to have a forbearance filed. I have since learned from the Department of Education that neither they nor Citibank should have contacted me during that time because I had filed bankruptcy. The Department of Education informed me that they had not contacted me regarding my loans because I had filed for bankruptcy. I asked if they were not contacting me; how would I have known they were placing my loans in default status. Additionally, if they were not contacting me because of the bankruptcy, then they had to be aware of the case; however, decided to place my loans in default status regardless of my active bankruptcy case.

At the request of the Department of Education in January, I amended the mailing matrix to add the Department of Education to receive notifications regarding my case. The Department of Education did not need to be added as a creditor, as they were already included as a creditor in the case. I was told if I added the Department of Education to receive notifications, my loans would be returned to good standing. This was not done after I filed the amendment.

After filing the amendment, the Department of Education indicated that they wanted my attorney to file a claim on their behave. My attorney has agreed to file the claim on their behave; however, the Department of Education has now said, they still may not return my loans to good standing.

I am a single mother of seven, out of work due to a disability. I am trying to return to school to complete my education in a field, which will be more accommodating for my disability. The Department of Education is causing me undue hardship regarding my case. Although they are aware of the fact that I filed for bankruptcy, the date that I filed and that my loans were not in default at the time of filing, they have refused to return my loans back to good standing or to provide me with a letter of eligibility in order to receive grants for which I qualify at this time.

Shirley of Salem, OR March 30, 2009

they closed the school i was attending. then my loans were discharged march of 2005. then in jan 09 i get a garnishment from them on my pay check was told they lost the discharge papers. i refiled the papers then they took my tax return. now i can't get my money bk. i have filled out all the required forms. now i'm hearing it could take up to 90 days for them to decided if there going to return my money.

the tax money was for me to go home on. now i'm stuck in oregon. can't go home to florida. i lost a good paying job in florida because of this. my autistic son is now living with family. the garnishment is killing my paycheck. i only work part now not getting full time any more. this is not fair to me or my son.

John of Rensselaer, NY February 24, 2009

iv been disable since 2004 have had my doctor fill out the discharge papers every 6 months only to be called by a debt collector. when i call the discharge unit im told they need more and more info. ive got montains of papers from my doctor. why wont they mail or call me to tell me instead of sending back into colections? i have not work since my fall off a scaffaloding 30 feet. i would love to go back to work. who will hire me. i cant move my left side. walk with a cane and im 51 years old. with 8 percent unempolyment out there who hire me

they taken my wife and mine income taxes every year

Russell of Flushing, NY November 26, 2008

After 35+ years, I am now beimg dunned for a loan w/interest from a school that I never attended. They sent an official statement that showed me taking a student loan from Ingram State Voc School. I deny this competely.

I referred this to my attorney who wrote them but they never reponded.

More than 15 collection agencies have dunned me at all hours ruining my credit. They did not send the info about this loan until 8/19/08 although I requested it three years ago.

Michele of Wellington, FL November 15, 2008

The school I went to was able to take out a loan in my name with the US Dept of Education, I never signed a note or anything else, yet I owe them 18,0000. The school and the lender took the loan out and I am stuck with it. I fought as much as I could but now it is in forbearance until 02/2009 until I can figure out what else I can do to fight them.

I have a student loan in my name that I never applied for and it was done by the school and the lender without my knowledge. It has impacted by credit and finances. I have other student loans that I am fully aware of, however, this one I did not sign up for. I have been fighting it for several years. I even sent them signatures of mine, and other evidence and they said I didnt have enough.

Ian of Goose Creek, SC November 9, 2008

They called and asked about my payment and they said I could defer my payment for six months but two months later, they reported me 60 days late to the credit bureau. I told them I had spoken with someone who allowed me to defer the payment and they said that was a mistake and she shouldnt have told me that. I told the lady (who was very rude) that I wanted the late payment removed from my credit report. She initially refused but they finally did after I disputed it with the credit bureau but it doesnt end there. My payments were supposed to be 50 a month but now I got a bill from them saying I have to pay 328 a month. I told them I cant afford that but they say they wont accept less and if I dont pay that amount every month, I will go into default.

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