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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 115462
Experience:  Attorney experienced in commercial litigation.
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Consolidated student loans through another servicer and

Customer Question

Consolidated student loans through another servicer and guarantour. PHEAA pulled back my loan. When new servicer realized that the pay off was short put through non existant loan that Aes purchased to make them whole. Have contacted all parties directly to no avail. Pstitioned the office of Obudsman to no avail. Requested a review and sought to exercise my rights. PHEAA stated that I have no rights since they have admistrative authority. Contacted several attorneys who are unwilling to take on PHEAA. Contacyed ACLU who advised that they were stretched to thin. Is there anything that can be done to rectify this fraud. Every time that my wages are garnished as well as my social security, a crime occurres.
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
If you still owe the money and the loan was not paid off in consolidation for whatever reason, then there is no claim you can make against PHEAA, since they are entitled to their money. You said that the pay off was short, so you still owe what was short I am afraid. If the servicer and guarantor made a mistake, while you still owe the money, any fees or penalties incurred as a result of them making a mistake you could sue the new servicer/guarantor over, but otherwise if the money is still due as part of the loan and it was not paid off, they still have the right to collect that money.
Customer: replied 1 year ago.
No. Consolidated direct loan and existing aes loan through Chase. aes pulled back my loan. and just started billing me.
Since aes was not aware of the circumstances that involved the reconsolidation they sent Chase a voluntary payment to pay off Chase. When Chase realized that the amount sent by aes was less that the total owed, Chase put through a non existant loan that aes purchased to make Chase whole. I do not have an agreement with aes.
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for clarifying.
So AES took your loan back to collect and started collecting but Chase is trying to still collect on the full amount by adding in an additional loan? Is that what you are saying?

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