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Maverick, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 6422
Experience:  20 years of proefessional experience
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This is regarding Student Loans - I am awaiting a hearing to

Customer Question

This is regarding Student Loans - I am awaiting a hearing to determine if my wages are going to be garnished. I submitted my reasons for why I do not feel that these loans are an enforceable debt with copies of paperwork from my student file that prove I was awarded a large amount of grant money way before my classes started and the money was apparently ready for use. However the school I attended did not advise me of this information up front, they actually blacked out the disbursement amounts of grant money and the dates received on my addendums. I was pressured into applying for loans to cover my tuition. Even though I was denied from my credit alone, a cosigner was needed. Co signer was also denied. Yet the Administrator approved me for these loans? He wanted me to apply for a loan that was over $6000 but it came back that I was approved for 5589.00 but on the bottom of that form, he already had installments from that loan divided into 3 payments which equaled 2.00 more than what I was actually approved for. Yet Sallie Mae was charging me for the loan that was 2.00 higher than what i was approved for. and at 13.25 interest. I am so frustrated with all the information I uncovered in my file, there's so much to tell. But i am trying to focus. They submitted electronic applications with false information pertaining to the cost of my attendance at their school. It appears as they were claiming a monthly cost for room and board which none of their campuses have, transportation fees, and spending fees. They lied to my County case worker for welfare at the time by stating I received a grant which included room and board for 6,120.00 My benefits were affected because of that. They reported false information to IRS about the amounts of grant money they received on my behalf, and reported payments received for qualified tuition falsely as well. I was also able to determine from a credit report that I pulled years ago which show all the loans from sallie mae were being paid on every month for minimal payments and at which the status for all accounts were open/never late. Yet those payments never showed up or were credited by sallie mae. I guess my question would be, Am I accountable for all these loans they forced me to take out which were in excess of 27,000.00 if I uncovered all this fraudulent information? They purposely kept the grant awards out of sight so It would appear as though I had no funds to cover tuition. I feel if I had that knowledge of the actual amount of grant money awarded, I would have applied it to the cost of tuition first before attempting to take out any loans to cover tuition. They also raised the cost of tuition 3 times! And didnt even post it to make us aware of the increase. There is more, but for now do I have a a valid complaint? Sallie Mae sold off to Navient, But USA FUNDS are threatening the garnishment. FAMS INC is the company attempting to collect. Navient I believe handle the Private Loans that Sallie Mae had. Please any insight..
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Maverick replied 1 year ago.

Welcome to Just Answer (“JA”)! My name is Maverick.

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Expert:  Maverick replied 1 year ago.

At this link you will find CA law that speaks to this issue. Note that the term "deceit" includes concealment and states in relevant part as follows:

The tort of deceit or fraud requires: “ ‘(a) misrepresentation (false representation, concealment, or nondisclosure); (b) knowledge of falsity (or ‘scienter’); (c) intent to defraud, i.e., to induce reliance; (d) justifiable reliance; and (e) resulting damage.’ ” (Engalla v. Permanente Medical Group, Inc.(1997) 15 Cal.4th 951, 974 [64 Cal.Rptr.2d 843, 938 P.2d 903].

Civil Code section 1710 specifies four kinds of deceit. This instruction applies to the first:

A deceit, within the meaning of [section 1709], is either:

1. The suggestion, as a fact, of that which is not true, by one who does not believe it to be true [intentional misrepresentation of fact];

2. The assertion, as a fact, of that which is not true, by one who has no reasonable ground for believing it to be true [negligent misrepresentation of fact];

3. The suppression of a fact, by one who is bound to disclose it, or who gives information of other facts which are likely to mislead for want of communication of that fact [concealment or suppression of fact]; or,

4. A promise, made without any intention of performing it [promissory fraud].

So, you or a business litigation or consumer protection attorney that you hire will need to sue the school for its fraud and for damage to credit reputation [if that happened also] and force the school to pay these loans that you took out which you would not have had to take out if the grant money had been disclosed to you.

Q. I guess my question would be, Am I accountable for all these loans they forced me to take out which were in excess of 27,000.00 if I uncovered all this fraudulent information?

Answer: You may be accountable for the loans since the lenders probably did not know that the school defrauded you; but you would pin the loans on the school. Given the nature of what has happened, you may be able to recover punitive damages against the school as well as your legal fees. I would suggest you contact a CA consumer law attorney right away.

Here is a link to help you get started. Here is another.