Here is a true horror story. It could happen to anyone who is so unwise as to borrow for college.
This poor woman has been trapped for 20 years. She probably will never escape.
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I graduated from Kent State University with my B.A. in Secondary Education in December, 1992. I borrowed $17K. I then added my elementary education certification/endorsement to be more employable & then my Masters in Curriculum & Instruction in Education. Because I didn’t wish to acquire more debt, I paid cash for these degrees. However, when I married & the payments we’re so high, we were approached to consolidate as a couple at a lower interest rate & payment. We bit. Worse thing I’ve ever done….
In 2005, I divorced. Everything was split – except these consolidated loans. It’s against the law to split them. My ex refused to make payments, & unless I paid both our payments, I was considered a nonpayer as well. I contacted AES about deferments & forebearances (for 20 years now, I’ve worked with underprivileged youth in low income districts), & at first they habitually “lost” or “never received” the paperwork (via fax, mail, email….) & later they told me both my ex & I had to defer for the same reason or it would be denied…we weren’t speaking & he lived in another state.
This went on for years (& penalties & fees & interest compounded). After moving from Las Vegas to Irvine, CA, in 2008, I visited our local credit union to transfer a personal & a car loan from LV. When the teller returned, she informed me that they could not service these loans because I had a $250K+ unpaid student loan & my credit score was 590 (in LV it was 800).
I was mortified, shocked, & frustrated. I immediately phoned AES, & they refused to divulge any info to me because my ex was listed primary & that would be invasion of his privacy. I was refused any info, but they reported it to the credit bureaus. What?!? This went on for almost a year. Then one day I was contacted by phone from a new organization, ASA. they told me if I paid $1500 monthly for 9 months, they’d fix my credit & I could enter IBR. I explained that I’m a single mom raising two daughters with limited to no support & that yearly through furlough days my teaching salary is less & less. They wouldn’t budge. I explained the most I could possibly afford after cutting some things from our budget was $750, & that would really be pushing it. The still refused.
The loans have recently gone into default, & ASA has attached my wages at $1000 monthly since this January – only MY wages, not the ex’s, yet he teaches & receives a higher salary…I’ve been denied homes to rent for my girls & me as this debt makes me a high risk (I have no other debt & have always paid my bills on time) & credit for a home.
And In March, I received my pink slip (no job for next year). I faxed a copy of it & a letter to AES & ASA explaining but never heard back. My last pay came June 30. I’m not trying to get out of paying what I owe – I’m just asking why I have to be burdened with another person’s debt AND my own. Why can’t the law allow these divorced consolidations to be separated or at least divided equally? Why should someone I legally divorced have the power over me to continue to ruin my credit? How can an organization ruin my credit yet refused me any info on the debt? How can I work in the public sector with underprivileged & be refused deferments or forgiveness because I took out my first loan too early?? How can these companies attach my wages yet not work with me on a fair payment? I worked hard for my education, borrowing a minimum amount & paying for most of it myself, & how am I rewarded? By picking up the tab for my ex….is that a just system?
No, it is NOT a just system, it's a government system.
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