Tips for Avoiding Student Loan Scams

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Check out my site on my opinion of student loans. I have had nothing but issues with one company. Even though I pay about $3000 a year in interest alone my loan has only decreased by $1200 over the past 4 years. www.studentloaninsanity.com

Don of MO 10:30PM September 25, 2011

Charles Dever needed money for books and tuition when he was granted a small scholarship to a Major western university in 2001. He applied to MOHILA student loans of St. Louis Mo and was granted a $5,000 loan on the condition he would provide a cosigner for the loan that was credible. He went to his employer, a small business doing copier repair in Garden Grove, Ca and requested their help. Thomas X, the owner was glad to help Charlie and signed the papers. less than a year later Charlie dropped out of school and took a job in Kenya leaving everything including his obligation to repay the MOHILA loan in California. MOHILA knew of Charlie's new job and that he had dropped out of college but when the loan was 60 days late, they went after Tom X, not charlie. Thom's credit report that was unblemished was hit over a hundred points negative. His business could not get vendor credit for supplies and had to pay cash in many cases. When Thomas finally got in touch with Charlie, he gave MOHILA his location, address and a family contact in the USA. MOHILA continued to hit Thomas's credit report moving his score even lower. When Charlie finally contacted MOHILA and tried to start repaying the loan, MOHILA issued a new loan using the same cosigner signature as they initially had done and place the student back on the account. Three months later Charlie was in an accident and lost his job so he quit making payments on the new loan. MOHILA then created a second negative account and came after Thomas X again. This time Thomas had two negative reports on his credit--one for each of the loans obtained. Eventually, Charlie recovered from his accident and married. His wife paid off the MOHILA loan but a big problem remained. Not only the strained relations between Charlie and his former employer were difficult to overcome, the report remained on Thomas's credit report and MOHILA refused to take it off . they told Thomas X that the report would remain on the record at TRW, Experian and two others for the next seven years. MOHILA was fined by the Justice department in the past and has since lost their certification to grant student loans. the Treasury department now is in charge of the loans but Thomas's credit record remains negative.

Alexis Overman of CA 6:55PM November 15, 2010

In 1997- almost 14 years ago as of this date, late wife signed a co-sign application for a bright young black girl that was employed by our company. Her name was Holly Tomlin. Holly's dad was killed when she was very young and her mother was unemployed, her grandfather was disabled. She had no means to pay tuition in addition to her small scholarship. Holly went to Mo. where she enrolled in college and graduated. From that point on Holly's life changed. She went to work for a company in Chapel Hill NC and then to Kenya. She never made a payment on the loan from the time she left for college. Mohila did nothing to pursue Holly directly, they came after the assets of the co-signer-me. Not having contact with Holly or any of her relatives, I was broadsided when my Experian, TRW and other credit reports indicated the negative. I diligently pursued former contacts of Holly and found her to be a graduate Psychologist working in California. I turned Holly over to collections and she began payments to Mohilla. In the interim, my financial records were attacked by Mohila in a vengeful tirade of multiple reporting of the account. Today, the account which is over 14 years old and paid in full continues to show not only the one account that my late wife signed on--it shows a SECOND account initiated by Mohila. My advice to young students is, to run as far away from MOHILA as possible. Inform your college load officers of the reputation MOHILA has with the co-signers of the application. This scenario of degrading the co-signers credit for years only induces a negative and lasting alienation between the student and those that they convince to co-sign. MOHILA's molestation of students future financial status will be sent to every blog, university loan officer and student newspaper available. MOHILLA's CEO, Raymond H. Bayer Jr. should be investigated by the DOJ and other agencies to uncover how they can issue credit reports over 14 years old and continue business.

William Gast of CA 6:48PM November 15, 2010

please give me some tips for avoiding scam

Barbara of NY 12:18AM September 19, 2008

The main article warns against solicitations that are not from the federal government (Department of Education).
My opinion is that it is precisely the DOE one has to watch, as Marion of RI points out.
I do not know what one can do if one has paid and has receipts. Send them to your U.S. Representative (copies, of course)?
There are so many offenses in the student loan program that I almost (futilely) would advocate eliminating the programs altogether. I never took a student loan and have taught three fields in colleges.
Just get in touch with studentloanjustice.org. Alan Collinge, the founder, works night and day to get some notice for people in trouble with student loans.
Harold Sewell

Harold Sewell of NY 12:03PM August 02, 2008

how do you go about proving that you paid your loan twenty five years ago. I have all my receipts. who whould i contact? i've tried with the asa and they tell me to pay. right now i'm disabled, nd send in my doctor's letter, but they still keep dunning me and adding interest.

marion konrad of RI 11:21AM June 28, 2008