Consolidating law school debt
If your income exceeds set limits, you can usually qualify for reduced financial aid.Additionally, if you earn an income well over the federal poverty level, but a medical disaster creates bills that exceed a certain percentage of your income, then the financial aid department will usually offer aid to cover some of your bills.At first I thought I might have been the lucky winner of a computer glitch or some kind soul had decided to pay all my loans in full. The next day I received a letter in the mail learning that my new provider would be Fed Loan Servicing.After about 30 seconds, I remembered reading about this several times before. Seemed like a pretty standard name and company, and what was the big deal?The form says that they will respond within 2 business days, and tomorrow will be around 3 so I should probably get a response by tomorrow.
I received a generic response that it could take up to 15 (!!
I apologize if this entire post sounds too rant-y in advance, but I don’t like these shady business practices that Fed Loan Servicing is pulling on me here.
Has anyone else had similar experiences with Fed Loan Servicing or even any other student loan servicer?
When I looked at the results I was absolutely stunned and I could feel my blood pressure rising instantly!
It seems that they had largely decided to arbitrarily put my payments however they felt it – there was no weight based on the size of the loan, and they ignored the accrued interest. A direct quote from their website is: “Any interest or fees that have accrued on your loans will be paid first before reducing your principal balance” but apparently this only applies when this is in their interests, like when the other loan has a lower interest rate.