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Senior Member
Let em rot
A friend of mine was trelling me about some shennanagans with student loans.The original loan was with lehman bros, we know what happened to them. the loan was at 6.5%, payable on graduation. This loan was sold toanother company, interest rate now,12.5% payable monthly. Sure its probably legal, the banking laws are there to screw most borrowers. This is the kind of crapola that makes my blood boil, probably no cheap recourse, how many students is this going to happen to?Why is robbing a bank a federal offense, but robbing a coomon citizen, good buisiness?What happened to interest deductions? uh no new taxes?
Senior Member
If the original contract says 6.5% that's what it still is. The new buyer of that loan cannot increase the interest rate without the borrower having signed a new contract. The next thing this company (individual) will probably do is make a demand for full and immediate payment.Originally Posted by kygorski
That happened to my daughter and I paid a visit to the original lender. By the time I arrived, I was more than a little mad and asked to see the President. I told him that our contract said the loan was 5.4% and that was what we were paying regardless of who they sold it to. I also made him aware there was a demand for full and immediate payment and our contract said different. We had not signed a new contract and were bound by the terms of the one we had.
He called someone at the company who bought her loan and talked to them. I interrupted his conversation and said, "Tell them I'll pay when it's due and not a day before." When he got off the phone he told me the new company said it was "just a mistake" that we could just go by the contract we had with the old lender.
It may or may not help in your friend's case but it sure doesn't hurt to give it your best try. Like I always say, "Nothing attempted, nothing gained."
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