Review: I feel like this Company in question, Great Lakes Higher Education Guaranty Corporation - Collection Support, has improperly mismanage funds,taken out of my check through my employer, [redacted]'s, since March, 2015, taken my Federal & State Refund, without my knowledge, In addition, combined some loans without my consent for collections on the student loan. To my knowledge and written proof, my Student Loans are still being Service by Ed Financial Services, Knoxville, TN and may be under deferment. According to written statements from Ed Financial my Current Balance is $0, My Regular Monthly payment & past due balance are $0. Their interest rate is 2.33% . Because I recently received these reports from Great Lakes and found out they were charging me an Interest Rate of 18%, and other things going on with this account in question, I called them on Tuesday, April 5, 2016. I spoke to Dustin. When I started asking questions about the interest rate, combining loans, and how they acquired this loan, Dustin became very furious and hung up the phone. I called back a second time and the person that answered hung -up the phone. I proceeded to call back a third time and spoke with Jacob. Jacob told me he could place me on a "Rehabilitation Program" with a start-up fee of $899.00 which my monthly payments would be reduced to around $5.00. I immediate thought to myself,; "Something does not seem right " Because Great Lakes has already taken out weekly and monthly payments from [redacted]'s, my employer , they also acquired my Federal & State Refund, and in addition, combined loans without my consent. I am supporting a 14 years old daughter, and I need every CENT that I earned to make sure that she is taken care of and there is College in about 3 years for her as well.....
My question to you is how did Great Lakes Higher Education Guaranty Corporation -Collection Support acquire this student Loan through Ed Financial? Was Ed Financials suppose to send me a letter regarding Great Lakes? Why I am still receiving account information from Ed Financial reporting my account and Student Loans are in Good Standing. Has Great Lakes Legally broken laws under the Fair Debt Collection Act?
I need further investigation into Great Lakes Practices?Desired Settlement: If Great Lakes Higher Education Guaranty Corporation - Collection Support has made improper or" Unfair Practices" toward the Student Loan account by acquiring this loan through Ed Financial and has not complied with the "Fair Debt Collection Act"; I wound like for all monies refunded to me taken from [redacted]'s, my employer ,since March, 2015 and I would like for a letter to be sent to the Department of Treasury of the Federal & State Income Taxes explaining about the Unfair Practices from Great Lakes and the refund be refunded back to me as well.
[redacted] Lead Trade Practice Consultant Revdex.com of Wisconsin 10101 W Greenfield Ave #125 Milwaukee WI 53214Dear Ms. [redacted],Thank you for contacting us on behalf of Mr. [redacted] and for providing us the opportunity to address his concern regarding his student loan. Mr. [redacted]’s concern as we understand it is validation of his debt.By way of some background Mr. [redacted]’s Federal Family Education Loan Program Stafford Loan is now guaranteed by Great Lakes Higher Education Guaranty Corporation, (Great Lakes). Great Lakes assumed that responsibility from Student Loan Guaranty Foundation of Arkansas (SLGFA) on October 1, 2014. Servicing of the loan has been assigned to Great Lakes Default Collections.On August 29, 2014, SLGFA, as the guarantor at the time, paid a default claim to Ed Financial Services, which was the result of their not receiving payment(s) or a completed request for deferment or forbearance to prevent Mr. [redacted]’s loan from defaulting. Based on the terms of his signed Promissory Note, when his student loan defaulted, the balance became due and payable in full. As we alluded to, Great Lakes later took over as the guaranty agency of Mr. [redacted]’s loan as of October 1, 2014.We have included a copy of Mr. [redacted]’s Master Promissory Note and Borrower Rights and Responsibilities for review. We have included a pay history as well.The Debt Collection Act of 1982 and the Debt Collection Improvement Act of 1996 authorize the U. S. Department of Treasury to offset any eligible Federal payments of individuals indebted to the U. S. Government. As such, Mr. [redacted]’s defaulted student loan(s) remain certified for Treasury offset until the account is paid in full or he has established and maintained repayment arrangements.Mr. [redacted] may be able to avoid future Treasury Offsets if he contacts Great Lakes, and makes and maintains satisfactory agreed-upon repayment arrangements. We urge him to contact us in order to avoid future Treasury Offsets and to discuss the repayment options available with him, including the Federal Loan Rehabilitation Program. There is specific information that we would need to discuss with him regarding the possibility of setting up this option.Mr. [redacted]’s account may be rehabilitated out of default after he enters into a Rehabilitation Agreement and voluntarily makes 9 consecutive on-time payments over a 10 month period as required. After he has made the sixth payment he may qualify for additional Title IV financial aid. The successful rehabilitation of his defaulted student loan(s) will result in the following:- Removal of his student loan(s) from default status- Removal of the default status reported by Great Lakes to the nationwide consumer reporting agencies- Eligibility for new financial aid to return to school- Eligibility for all remaining periods of deferment or forbearanceIt is important to note that on July 1, 2014, new regulations concerning Administrative Wage Garnishment (AWG) for defaulted borrowers went into effect ( 34 CFR § 682.410(b)(9)). The regulations contain special requirements for borrowers who enter rehabilitation agreements while subject to AWG orders. Guarantors “must continue” AWG “until [a] borrower makes five qualifying monthly payments under the rehabilitation agreement” but then must suspend AWG “when the agency receives a borrower’s fifth qualifying payment under a loan rehabilitation agreement, unless otherwise directed by the borrower” (34 CFR §§ 682.405(a)(3)(i), 682.410(b)(9)(V)).If Mr. [redacted] feels the offset of his Federal Treasury payment may cause a hardship, he may contact Great Lakes, to request an IRS Hardship packet. The packet needs to be completed and returned with all required supporting documentation for review. There is no guarantee of a refund.Mr. [redacted] may reach a Great Lakes Collection Support representative at ###-###-####.We again thank you for contacting us and for giving us an opportunity to be of assistance. If additional information is required, please by all means, contact us. You can reach our office between 7:00 am and 4:30 pm Monday through Friday at ###-###-####, or by email at [email protected]
Sincerely,[redacted]Great Lakes Higher EducationOmbudsman Specialist
I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.
[To assist us in bringing this matter to a close, we would like to know your view on the matter.]
The Reasons we reject this complaint, is that we were never informed by Ed Financial Services or Great Lakes Higher Education that the student loan has exchanged hands. Furthermore, Ed Financial Services is still showing they are in charge of [redacted]'s student Loan as of April 12, 2016. Written proof will be sent to you upon your request.