I have entered into a conversation with EdFinancial, the company that now has the government contract to collect student loan debt.
You will find my letter to Senator Elizabeth Warren, describing my story, below the orange noodly thing.
Dear Senator Warren -
I know you have been fighting for fair treatment of those of us who have student loans.
I am in a situation where I borrowed about $32,000 in the early nineties, at the beginning of the student loan boom. I paid when I could, but there were times that I couldn't.
Once in 2000, and again in 2008, my loans were "consolidated". As you know, with student loans there is no negotiating, no bankruptcy, no way out. At both of those times, I was struggling financially (in 2000 I was supporting two people on a meager income, and we all know what happened in '08). It was either pay my rent or pay my student loans. Rent won.
As a result, even though I did in fact make payments over the years, my balance has now more than TRIPLED to over $102,000. The people at EdFinancial (government contractors for loan management) tell me that all my data is online. Well sure it is - everything except for the amount that I actually paid back. It says I was "in repayment" but no numbers. No terms, no interest rates, nothing. Just how much I borrowed and then borrowed again to "consolidate".
I had no choice BUT to accept their terms. Which, apparently, is not much different than borrowing from the Sopranos.
I am telling them that I am refusing to make a payment until I get three things:
1) I want details on my payments, including dates and amounts
2) I want details on my terms
3) I want to negotiate a balance that is more in line with what I originally borrowed, under the terms that I originally borrowed the money. Almost all my loans were Staffords.
The racket was in "consolidation", but I never had a choice. It was either default now, or take this. So when EdFinancial tries to tell me that these are terms that I "agreed" to, they're wrong. I was forced to agree to them.
I just wanted to tell you my story, and ask you to please work to change the laws on student loans. It is criminal, dishonest and usurious. I could actually default on a debt of over $100,000 that I never borrowed. It would ruin me financially for the rest of my life. And repayment is a joke - I would be paying it back for the rest of my life as well. With nothing to show for it. I also have no assets - no home, no savings, zero - well, other than a nine year old car.
However, if I my name was CitiBank, or Chase Manhattan, I'm sure that something could be worked out.
Doesn't sound very American to me. Thank you so much for your time.
Very respectfully yours,
La Gitane