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I've been reading stories on Consumerist about people being jerked around by student loan companies (esp. Sallie Mae), basically having their ability to pay sabotaged, forced to default, then being hounded for the rest of their lives for money they can't make because they can't get a job with their credit ruined. What companies are the least likely to gently caress me in this way? I'm thinking of going with Wells Fargo, because they've been good to me thus far, and I hear they don't sell their loans. Is this a bad idea?
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May 3, 2007 06:21
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I applied for a Stafford loan with Wells Fargo. I was told that I'd need a cosigner (even though I'm loving 29, since I've never had a loan before...just credit cards which have been paid off on time pretty much forever). My dad finally went and talked to them about cosigning, but it turns out he doesn't make enough for them to accept him. He's my only likely candidate for a cosigner. (My mom makes more money, but has been chronically in debt for ages due to her being out of her goddamn mind) Am I likely to face the same situation with any lender worth dealing with? I'm kind of concerned now. edit: Update: I've just gotten off the phone with Wells Fargo. Apparently, I applied for the wrong kind of loan, because the right one doesn't show up in one of the lists of loan types (even under their Stafford Loan application). They say this usually means that the school requires the master promissary note be created through their financial aid office. If this is true...I'm getting kind of suspicious. Like, what would happen if I were to try an online application with one of Temple's preferred lenders? Would it just sail right through? How illegal would that be? VideoTapir fucked around with this message at 23:20 on Jun 4, 2007 |
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Jun 4, 2007 22:30
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Wiggy Marie posted:To both of you: Yes, I completed the FAFSA in February. The problem turned out to be that the online application for the Stafford loan wasn't going through (with no indication why, but I later found out) and that it wouldn't let me progress any further without selecting a different loan. This only happened when I put Temple as the school. I tried a different school in a different state, and it continued right on as it was supposed to. I just now found out why. Apparently Wells Fargo only does loans in Pennsylvania through PHEAA...which is this AES you don't seem to like. I'm worried now. What is it exactly that's wrong with AES? The reason I wanted to go with Wells Fargo is that they are known for holding on to their loans. (I do NOT want to get sold to any Sallie Maes or the like) That's the same reason my dad has his mortgage with them, in fact. Is it a bad idea to go with AES? Are they known for selling off loans? If the loan is supposedly with Well Fargo through AES, does that mean that AES cannot sell the loan without the approval of Wells Fargo? edit: I'm on the phone with AES now. Apparently there's already an account on their systems with my SSN on it even though I've never signed up for one.  The stafford loan application from Temple went to AES, despite my specifying Wells Fargo (which I didn't have the code for at the time but dammit shouldn't the financial aid office be able to look that up) and Wells Fargo never got it, and never got any evidence of my eligibility. I THINK that's why they can't process my application. Also I get the impression that AES is trying to get me to apply for a loan with them INSTEAD OF Wells Fargo. Or that Temple's Financial Aid office is trying to do so. I'm really distrustful right now. edit2: Apparently the idea that there was already an account for me was an error on the part of the employee with whom I was speaking. I went through most of the MPN application with AES and it DID list Wells Fargo Educational Financial Services (or whatever the exact name was) as the lender. I guess I'm just paranoid what with all the student loan shenanigans going on these days. The AES guy I spoke to after clearing up that online account nonsense assured me that if Wells Fargo is the lender, the loan cannot be sold by anyone but Wells Fargo. I would like to confirm that with Wells Fargo before I actually borrow any money from them, but I think I may finally have this sorted out. So, Wiggy, I guess all I need to know now is what exactly kind of headache can I expect from AES, as the servicer of this loan? VideoTapir fucked around with this message at 00:00 on Jun 6, 2007 |
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Jun 5, 2007 23:10
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Wiggy Marie posted:Wells Fargo, from what I understand, doesn't sell their loans. This is a really really good feature for you, the student, because you don't have to worry about capitalized interest with multiple sales. Uh, what? Capitalized what? Oh god, don't tell me they're turning interest to principal when they sell loans. (There's no way that can be legal, is there?) quote:I can say that you'll learn to hate their phone system and that horrible woman's voice very quickly, and you might not always get the nicest person on the phone. Oh, I've already learned to hate it. Sigh. Sounds like I'll be able to live with this. If I could handle the week-long runarounds in the military, a few hours on the phone every now and again ought to be a walk in the park. quote:I think the supervisors have started cracking down on the attitude problems, though, because the last 3-4 times I spoke with them the rep was really nice. So yey for progress! Would these attitude problems include rattling off completely useless information even after I have repeatedly said "I know. I know. I know." for minutes on end? Christ, I think that CSR was worse than the damned computer.
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Jun 6, 2007 04:35
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Wiggy Marie posted:Yes it happens rather often, and yes is it legal (currently). This is NOT one of the things being attacked, so chances are this is not going to change soon. This is why life of the loan servicing is such a big deal, and actually offered as an incentive for an account. Hurf durf, my brain must not have been working right that day. Interest that has accrued to that point but not been paid, which means people were paying less than they really ought to have been. Still, that it gets capitalized when the loan is transferred, when it wouldn't otherwise seems kind of shady to me. (Like it would encourage loans being sold when they otherwise wouldn't be, because the sale would increase the value of the loan)
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Jun 7, 2007 23:32
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potatoe_chip posted:Would they come after me hardcore? Half their business is coming after non-payers hardcore. They do collections on behalf of the federal government for their own subsidized loans. Coming after you hardcore is their reason to be.
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Jun 15, 2007 00:18
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potatoe_chip posted:But besides writing me angry letters and annoying me on the phone and ruining my credit, theyre not going to come beat me up or get me arrested or repo my things or take my bank accounts will they? Unless (or more like WHEN, given the student loan shenanigans lately) this push to have student loans become dischargable in bankruptcy goes through, they will have absolutely zero reason to do so. They can keep coming after you for that money for 25 years, and you have no way to get out of that obligation but to die, or go to some country where they can't hurt you. What I find hilarious about this is that if they just hadn't gotten greedy (trying to get people to default or pay late so they can jack up interest rates, bribing financial aid offices, denying people the ability to consolidate their loans, plus whatever other bullshit they're doing), they could have kept regulations away and made more money than they will now. I have no sympathy. I hope the offenders wither and die.
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Jun 16, 2007 00:30
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Wiggy Marie posted:VideoTapir, I would be downright shocked if student loans became dischargeable through bankruptcy, and I must say that I am fully against the idea. The government paid for your education; when you file bankruptcy, you don't forfeit your degree or the education you've already gained, therefore you still owe those loans. That's no different from any other debt where the property it purchased isn't recoverable. And they wouldn't be looking at the possibility right now if the industry had been keeping its nose clean. quote:Honestly, most of the problems with the program today can be directly tied to the private/alternative loans. Students are graduating with 40-150,000 in private loans. In PRIVATE loans. With interest rates as high as 25%!!! What the gently caress man? That's just wrong. I'm praying that there's a serious rehaul of the Direct and FFELP programs coming, because of those amounts don't change significantly, the problem will just keep right on getting worse. This is why I am SOOOOO glad I (probably) won't need them. If I do, I won't need much. (Well, so long as I either work, or live on like 10 grand a year above my tuition and fees. Done it before, can do it again.)
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Jun 16, 2007 07:28
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