Thousands of Student who are about to attend college are about to have a rather nasty surprise. Their Federal Student Loans while approved are not to be funded. My Rich Uncle is a public trade company, the parent company's name is MRU HOLDINGS INC (Nasdaq-GM: UNCL). They are a well know advertiser with right wing sock puppets, Dennis Miller and Dennis Prager. Their funder allegedly DEUTSCHE BANK AG (NYSE: DB) has decided not to fund anymore Student Loans. Management has know this for the last 10 days and has yet to inform any of the students, which could number into the thousand that their approved Student Loans, are no more!!
My wife had been going a little crazy the last 2 weeks as the Loan Docs (Promissorary Note) had not been delivered. Even though her loan was totally 100% approved at the web-site http://www.myrichuncle.com/. After checking with the school again, she again tried to get in touch with a representative of UNCL to figure out what was going on with our daughter's Student Loan. To the tribute, of the Woman who answered the phone helped my wife by telling her the truth. All the Customer Reps have been begging management to notify the effected students. They have instructed telephone reps to remain silent on the funding issues and give the usual assurances that the status is good. My wife was very insistent and really needed to know if this loan was not going to be funded due to College starts in 3 freakin weeks. The Rep explains that DB has pulled UNCL funding therefore none of their Federal Loans have funding! My wife is now calling me in near panic. No funding, daughter leaves in 3 weeks what are we going to do? It came down to what big bank do we have a relationship with that still has money, where we could get a loan, any loan for College. After several futile attempts, my wife and I finally asked the right questions, and we took one of the few programs still available. We walked away with a loan, and in this market we should be happy.
I sincerely hope our experience was unique somehow. I fear it's not. Please check with your lender and make sure your loan is going to fund. Especially if you are relying on My Rich Uncle. Nothing will excuse the cowardly behavior of executives at UNCL who do not have the guts to deliver bad news to people who have to make alternative plans immediately. I hope a class action attorney is reading this.
Unfortunately, it seems that other people are having the same experience. From my3cents.com
MyRichUncle.com
Complaint
My Rich Uncle Fails To Honor Approved Federal Loans - Federal Student Loan
Posted By: brand on 7/16/2008
My Rich Uncle has a great marketing message, but fails to provide standard customer service, such as notifying approved loan clients that they no longer have funding for federal loans. I was lucky in that I became nervous about no returned calls and a lack of online updates and was finally able to reach someone (after 2 hrs of effort) and then learned that they would not honor the loan.
How many parents and students will find out when it is to late?
Good Luck