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Anne
Anne, Master Tax Preparer
Category: Tax
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Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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I have some confusion about a past delinquent student loan

Customer Question

Hello, I have some confusion about a past delinquent student loan account
JA: What state are you in? It matters because laws vary by location.
Customer: TN
JA: Has anything been filed or reported?
Customer: Yes
JA: Anything else you want the lawyer to know before I connect you?
Customer: The account was originally delinquent in 2009
Submitted: 9 months ago.
Category: Tax
Expert:  Barbara replied 9 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Please post your specific question regarding your delinquent student loan.

Best regards,

Barb

Customer: replied 9 months ago.
Due to hardship, I went into delinquent status on a student loan account in 2009 with Lincoln technical university and it went into charge off. I set up a payment plan with the school earlier this year after numerous calls, and the school has its own collection department(LTI accounts receivable). Even though I have made every payment on time since starting the payment plan, they are reporting a recent late payment on my credit report every month. This has caused me to be denied for various credit and is causing further hardship. I also set up the payment plan for 80 payments of $150/mo. But when I went to the school, their records show that only $1 of the monthly payments I have been making is actually going toward the balance of approx $11,000 including interest over the last few years. So there is no way I'm going to be done laying in 80 months with that structure. Meanwhile, I am making payments every month, and they are still reporting it late every month, keeping my credit down and turning away any potential lenders, keeping me from getting into a home, etc.. I spoke with an accounts receivable Rep, who goes only by "Mr. Dennon", and tried to ask if they could not continue to report late because I was paying on time currently. I was basically told NO forget about it! How is this possible, or even legal?(if so). Is there any recourse I can take so that this doesn't continue to cause hardship for me? I understand I went delinquent, my fault. But I have currently been paying as agreed for almost a year now, and it seems very unfair for them to intentionally continue causing me hardship with these practices. Please help!!!
Expert:  Barbara replied 9 months ago.

I am sincerely ***** ***** are in this situation.

I will opt out so another expert with expertise on this topic can assist.

Thank you.

Barb

Expert:  Anne replied 9 months ago.

HI

I'm Anne. I've been preparing taxes for 28 years, and I'll be happy to help you.

I'm truly sorry that the university is so unbending on this issue. You have the right to include a 100 word statement that explains your reason for having a late payment show every month. Please see below:

http://www.creditcards.com/credit-card-news/help/add-written-statement-to-credit-report-6000.php

If you have found my answer helpful, please take the moment to rate positive by clicking on the stars.

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Thank you for choosing justanswer.

Customer: replied 9 months ago.
I do t know the reason he late payment keeps updating every month. That's my issue exactly. It really doesn't seem like they should be able to do this, especially since I'm paying on the account on time every month. Also, that according to the records, they are only applying $1 of every $150 dollars per month I'm paying to the actual principle, and the remaining $149 supposedly to interest. I have supporting documentation of this. After looking over it with someone at the school, they became kind of nervous as if I had found out something g I shouldn't have. I'm not well versed on law, but I do know there has to be something wrong with the way they are handling this.

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