Sep 2, 2008 11:11 pm US/Pacific
Call Kurtis: Consolidated Loans
The economy is hitting those with student loan debt hard and some people are looking to consolidate loans at a lower interest rate. But that could cost you more in the long run.
Former police officer Flor Gressel took $40,000 from two lenders to fulfill a dream of becoming a teacher.
But, her salary is not enough to pay the bills. So she answered an ad from PCFS or Post Collegiate Financial Services saying she could consolidate her loans and lower her payments. Flor says the loan agent made an additional offer.
"'You don't have to pay your student loan for three years.' I said 'what?' 'It's not a deferment, it's not a forbearance?' 'What do you mean?' 'You will not have to pay for three years'," said Gressel.
PCFS approved her application and passed her loan to a new lender and $400 a month payments are due starting now.
"I get a letter from some company called AES and they say 'we have your loan.' That's all it was," said Gressel. "You don't have to do anything but we have your loan. And I said well 'who are you?'"
She immediately called PCFS and asked for her loan agent.
"They say they fired the guy for misinformation," said Gressel.
PCFS told our sister station in San Francisco, "Flor Gressel was never told there was anyone fired due to her situation." They said that she did not qualify for a deferment plan, which was outlined in a loan consolidation agreement that she signed.
Rrobert Shireman with the Student Loan Project says Flor's option now is to hire an attorney to prove she was misled.
"The consumer would have a strong case, even if the loan was sold to someone else when a company is purchasing loans from another company they take on the responsibility as if they had been the ones making the loans," said Shireman. "The owner of the loan carries that."
Get agreements in writing. Ironically, if Flor left her debt as is, she would have qualified for a new debt-forgiveness program for people in public service like teachers. It's part of a new college loan law that takes effect this month
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