Financially screwed.....
I really don't even know where to start! About 5 years ago I pulled my credit report to look into something. However, I did not expect to find what I found. I graduated high school in 2000 and my father and step-mother were taking charge of college expenses and applying for Financial Aid and Loans. I attended about 1 1/2 years of college before I moved out of state and took a break from school. Apparently when I pulled my report, I had school loans I did not even know that I had, which at this point were defaulted which also affected my credit. I called each loan company on my report and requested copies of my Promissory Notes only to find out that my step-mother had signed my name on a $7,000 Sallie Mae loan BEFORE I graduated high school and was still living with them. I spend a few weeks calling the 2 college I attended to verify that all that money was received by the school and unfortunately since it was 5 years ago they were unable to verify that, but could send me a break down of all the money going in and out of the school during the time I was enrolled. Some areas do not add up, but it's hard to verify at this point. I have confronted my father about this and he responded in the way I expected "we don't have the money to help", "you just have to discipline yourself", and "they keep calling me so you need to take care of them". It's getting frustrating. As of now, my loans have accrured so much interest that I owe over $50,000 and did not receive a degree. This has affected my credit so horribly and also can affect any future jobs or things I would need a loan. All I'm asking is he or my step-mother since it was her wrong-doing take responsbility for their actions on that loan alone. Is it fair that I need to pay that loan back?? I did however contact the Sallie Mae fraud hotline and because the school received the funds and I benefited, there is legally nothing they can do. This issue is also affecting their credit since they are listed as co-signers so why nothing has been done is beyond me. Instead, he just comes after us because they keep calling him!!! Any opinions would be great appreciated!
The excess money (if there
The excess money (if there was any and generally there isn't) would have gone to the address listed with the school. It is possible that she never saw any if there was any. I didn't get any excess money on my student loans until I was a graduate student.
I have never received any
I have never received any excess funds. My sister who was in Arizona was going to school the same time as me had actually received a check. She called my dad becuase she was not sure why she got it and he told her to send it right to him and she never got another one. He most likely contacted them to send the funds to him. It's really crazy and it sucks that a father could do that to his kids.
He never discussed anything
He never discussed anything about applying for loans. He never told us anything about how the school was being paid for. I know it sounds unbelievable to a lot of people, but this is a very frustrating situation for me. I was aware of ONE loan that was taken out that I signed that I had no problem paying back. But, the ones that my step mom signed my name I had no idea I had. So that total amount of loans she signed have acrued so much interest that before I even realized I had it, it's up to a ridiculous amount. When she signed MY name, my dad signed as the co-signer so I never knew. I never received statements in the mail or anything.
If I could pay off my loans, I don't think I would be discussing this here. I'm at a loss and I don't know what my options are at this point.
Fortunately if she is able to
Fortunately if she is able to prove the loans were part of a fraud scheme or if she starts to pay on them and gets them back into good standing she can still get most government jobs. There is also a program she can join that sets the student loan at a 20 year payback, then once she works for 10 years with most federal government agencies the rest of loans will be considered paid in full.
It was for a private 4 year
It was for a private 4 year college. I have the print out of all the money that has gone in and gone out. There are still amounts that do not add up according to the loans that were taken out. Meaning, there was extra money sent somewhere. We are still working on figuring that out.
I am definitely going to talk to my step-mother and ask her to take responsibility for her actions becuase she illegally signed my name on a document.
I guess its possible that the
I guess its possible that the loan was taken out when she was 18, yet still in high school, and I do know of several schools with tuition per semester over 7 grand (ridiculous, I know).
EXACTLY!! I am in the United
EXACTLY!! I am in the United States she FORGED my name on the document. When I called Sallie Mae and talked to the Fraud Department they told me that it was in their wrong doing, BUT because the school received the funds and I benefited from it, then they can't do anything. I would have to go the more legal direction if I really felt it necessary.
That is why I am confused because another loan with the same company I signed and the signatures do not match but they still accepted them. She also TRIED to sign my name for a $14,000 loan but was denied. I have all the paperwork to prove it!!
I can see that you don't believe my story and you're not really helping matters. I came here trying to get advice and you're making me feel stupid. I have all the proof I need, I just need help as to what directions I can take. Thank you anyway.
if you're more interested in
if you're more interested in getting your credit sorted out and not planning on filing fraud charges against your dad & sm, why don't you negotiate a pay plan for the loans, many times they will knock off a shitload of the finance charges and make it managable for you to pay back what you did benefit from....
otherwise, stick with your shitty credit, i think the state/federal stuff stays on your credit forever, so if you go to buy a house, you may be required to pay the loans off first or get an u/w exception, but then when you sell your house, if there are any profits, the government will be there to get their share!
I'm still confused. How did a
I'm still confused.
How did a $7000 student loan accrue interest up to $50,000 in 8 years? (I think the interest doesn't start accruing for 6 months after you leave school) The interest rate on student loans is low, that's part of what makes them so appealing - at least it used to be that way.
You only went to school for a year and a half?
I think you must have misunderstood the bank. If someone forged your name on a loan application you are not liable to pay for the loan. This 'since you benefited there's nothing that we can do' is nonsense.
Some questions: Were you
Some questions:
Were you married or did you have children before you graduated high school? What is your military status?
How many semesters or quarters did you actually attend?
Interesting, I just saw an
Interesting, I just saw an article today about identity theft with kids and parents. You can sue for fraud. If they got loans without your knowledge in your name and used the money for themselves, then they broke the law. Check with legal aid and see if you can find out what the laws are in your state about this. You should be able to get info from the loan company about how, when and where the money was disbursed. In my state, what they did is a FELONY.
Link to article, it has some good info
http://www.ajc.com/news/child-identity-theft-increases-572552.html?cxtyp...
WOW!! Thank you so much
WOW!! Thank you so much everyone!! Everything you said really helps and I am going to look into it all. LizzieA thank you especially for that article.
To answer some questions:
It was not JUST the $7,000 loan that acrued that much interest, I also have many other loans that were taken out that I am aware of. I went to a private 4 year colled which is why it was so expensive a semester. I was 17 at the time my step mother signed my name and about to graduate high school. Does being 17 change anything? I know a lot of things change once you turn 18.
The reason Sallie Mae said there was nothing they could do was becuase technically since the school received the money they needed and I attended, then I benefited from an education. The way they described it to me was it's not like you can take back your education and get the money back. I was just as shocked to find out that there was NOTHING they could do. But I am definiately going to look into Fraud. It's can't be that easy to get away with.
Since all of this, I am not a fan of Sallie Mae. Everytime they call me I try to explain to them that I don't have the finances to start making payments or atleast they amount they want and they have never tried to negotiate with me. They just keep calling.