student loans

[bzskinrobbins]

i attended a college for 7 semesters and had taken out student loans started repaying my loans and got an official copy it shows the school cashed 8 checks even though i only attended 7 semesters now this loan has been on my credit for over three years am i entitled to this money from the school is it leagle for them to keep this money and me have to repay it even though i was not in school

[able1]

The lender should demand it back and credit you!

I used to work in a couple of college financial aid departments and I also did loan collections for several years so I can offer you some non legal advice that may help you gain some control over the situation and at least see if the school is trying to pull a fast one on you.

Take a look at your promissory notes and verify the amount of the loans that you signed for. I dont know all of your circumstances but if you attened a portion of the 8th semester (even just for a few days-depending on the school) they may have charged you for the entire cost of the semester or a pro rated cost for that semester which may be why they kept some or all of the funds. Your school's handbook or catalog should have a finance section that will explain the cost associated with withdrawal.

Another thing to consider is if it is federal student loans that you received the funds of the loan increase over time. So during your second year you receive more than the first year, the third year you receive more than the second and so on. If you had a short fall or an outstanding balance from your previous semester that needed to be paid the school may have kept the funds to cover that existing balance. It's been some time since I worked in a university financial aid office but to the best of memory i believe that IS a violation of DOE policies.

If you havent done so alreay I would
1 have the school send you a break down of cost for each semester. Determine how much you were charged and how much was paid. Do this by phone and in writing by certified mail.

2 Contact your lender and/or guarantee agency after your reviewed your cost break down if you still feel like you are being asked to pay the wrong amount. Do this by phone and in writing by certified mail.

3 Contact the departmet of education (DOE) and get advisement from them. They will probably direct you to the Ombudsman to file a grievance. The school can get into HUGE trouble if they have kept funds they were not entitled to.

4 Conact all 3 credit bureaus to let them know you are disputing your balance so that it does not negatively impact your credit rating. Do this by phone and in writing by certified mail.

5 Do not avoid contact with your lender or your school. If they call for collections always talk to them and let everyone you speak to know your situation so that it will be well documented.

Hope this helps

[judg4]

Good advice!