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HOLLYHO · Oct 14, 2008, 12:34 PM

My student loan has gone from $17000.00 TO $2100.00 in one year. They keep charging more and more. I am never getting rid of these. How can they charge more then the credit card companies are allowed to. Because they are federal government and they can do what ever they please.
1: How can I find financial records for the William D Ford Student Loan
2: William D Ford tells me they will not negotiate. I have paid for many years on these small loans and they keep getting bigger. They also tell me there is not a lawyer in the world that will take on the federal government. This is why they can do what they want. Any suggestions on how to get rid of these loans? And William ford out of my life for good with these loans.

ScottGem · Oct 14, 2008, 12:37 PM

Are we talking private loans? If so, a private student loan is just a regular loan used for student purposes.

If we are talking public loans, they are subject to inbterest rate restrictions imposed by the govt.

If you are not paying the interest on these loans the balances will increase. This is not free money.

JudyKayTee · Oct 14, 2008, 07:34 PM

[QUOTE=Comments on this post
HOLLYHO disagrees: The question was not read ery well. This is government loan and they seem to have different regulations for themselves then they do others. And i realize it is not free money but do we have to pay quadruple back?.[/QUOTE]

Please read the rules for posting and disagreeing with posts. You are in violation.

You have to pay back what you agreed to pay back when you signed for the loans - fixed rate, flexible rate. If you signed for one rate and are being charged another, then I do not believe an Attorney will not represent you.

If you want to argue Government policies, this is not the place for it. If you already know the answer, then this is not the place for it.

If you want to know how to stop paying interest, the legal answer - and this is a legal board - is pay off the loans just like a whole lot of people who post here did.

ScottGem · Oct 15, 2008, 06:02 AM

First, may I call your attention to the guidelines for using the comments feature found here:

https://www.askmehelpdesk.com/feedba...ure-24951.html

Second, I did read the post carefully. But there are contradictory elements in your post that made it unclear what you are dealing with. I am fairly familiar with student loans, since my daughter recently finished college. She consolidated her student loans when she graduated at a rate of just over 5%. Well below credit card rates. So if you are being charged such high rates I doubt if you have a government subsidized loan.

I've never heard of the William D Ford Student loan. Public student loans fall under the Stafford program of the Federal government. In addition, there are also Private student loans, which do not have interest rate caps. The difference between a regular loan and a private student loan is that student loans allow for deferral of payment until the student starts working.

I suspect the William D Ford loan is a private loan trading on the Stafford name. So it sounds like you may not have done your homework in obtaining financing for your education.

So maybe you should try understanding the advice you are given and what options you have selected before you start trashing people.

JudyKayTee · Oct 15, 2008, 06:10 AM

OP would have signed the following as part of the Contract, copied directly from the website:

"The interest rate for loans disbursed between July 1, 1998, and June 30, 2006, will continue to be adjusted each year on July 1, though for Stafford loans it will never be higher than 8.25%. However, Stafford loans disbursed on or after July 1, 2006, have a fixed interest rate of 6.8%, with the exception that subsidized loans disbursed on or after July 1, 2008, to undergraduate students will have an interest rate of 6.00%. Direct PLUS Loans have a fixed rate of 7.9%. "

Fr_Chuck · Oct 15, 2008, 06:14 AM

If you are not paying above the min required they will get larger each month, has the loan gone into default ?

It sounds like you need to increase your payment

But you said it went from 17 thousand to 2 thousand, did you mean 21 thouand.

But there are required paymnents to reduce the amount, if you are paying less than the interest it will go up.

ScottGem · Oct 15, 2008, 06:33 AM

I checked up on the William D Ford program, and it is a government program from the Dept of Education that makes loans direct to students. The loans do follow Stafford interest guidleines and limits, but the loans are subject to fees taken off the top.

So I question how the govt is charging rates higher than credit cards. And I suspect, that if the balance is going up, its because they OP hasn't exercised any of the generous repayment options available.