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Student Loans Returned to Lender, Now I'm Being Charged for Tuition

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  • 07-15-2013, 03:40 PM
    jburke772
    Student Loans Returned to Lender, Now I'm Being Charged for Tuition
    My question involves collection proceedings in the State of: California

    I attended ITT Tech, Online during 2011. I completed a full year at the school and had both Student loans and the Pell grant approved. When it came time to fill out paperwork for the next year of courses I was informed that I supposedly had a $10,000 balance with the school. Upon further investigation, it was found that the school was trying to apply my student loans to a non-existent account. Sine the account they were attempting to apply my student loan funds to was not valid, the school decided to send back the loan money to the lender.

    Now I currently have a $10,000 plus collections account against me for a debt that is not valid, and was only caused by ITT Tech's own incompetence.

    I am trying to get information on what I can do to not only rid myself of this bogus debt, but also try and force ITT Tech to release my official transcripts to my current college. When first enrolling at ITT Tech, I had every intention of completing my Bachelor's degree through them, however after this little fiasco I will never attend their school.

    Any and all suggestions are highly appreciated.

    Thank you
  • 07-15-2013, 05:30 PM
    Mr. Knowitall
    Re: Student Loans Returned to Lender, Now I'm Being Charged for Tuition
    I very much doubt that the school made no effort to contact you about the unpaid tuition until the following year. Please start by telling us why you didn't receive any contact from the billing office or, if you did, why you ignored the contact?

    How much of the $10,000 was supposed to be a Pell Grant?
  • 07-15-2013, 06:30 PM
    jburke772
    Re: Student Loans Returned to Lender, Now I'm Being Charged for Tuition
    The school made no effort during the year to contact me. I had called them every 2 months, for the first 6 months, during that time to inquire about "cost of living loans" and even during these calls I made to them, they never stated any problems with the financial aid.

    None of the $10,000 includes pell grant funding. The original loan amount was $9500 ($5000 unsubsidized and $4500 subsidized), the current amount which is over $10,000 is including interest they are charging me for their mistake.

    I have no idea why ITT Tech did not catch their mistake sooner... if they had, I would have my Bachelors done by now instead of having to attend another school and start over. With all the calls I made to them in the first year, they should have seen some red flags in their system.

    - - - Updated - - -

    Also, I forgot to add... according to the NSLDS, ITT Tech did not even cancel and return the loan funds until the end of that school year (12/11/2011 and 12/23/2011). So why would they keep the funds all year (loans were funded in both April 2011 and march 2011 - per NSLDS), then send them back at the end of the school year??
  • 07-15-2013, 09:55 PM
    Disagreeable
    Re: Student Loans Returned to Lender, Now I'm Being Charged for Tuition
    That bachelors and 4 or 5 years at a real college would get you a bachelors degree.
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