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  1. #1
    Join Date
    Feb 2009
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    1

    Default Never Used Student Loan - Wages Being Garnished

    My question involves collection proceedings in the State of: FL

    I enrolled at Florida Metropolitan University in 2003 (I was 19). I obtained a loan from SallieMae. I attended class once, changed my mind, enlisted in the Navy and went off to boot camp. I did not disenroll at Florida Metropolitan University (mistake one). Upon being stationed back in Florida I discovered that I was being held responsible for this loan, the school (Florida Metropolitan University), did not return to SallieMae. The money went to the school not me. I spoke with representatives at SallieMae and Florida Metropolitan University to try and figure this out. Both parties informed me that there was nothing they could do because I did not disenroll. Believing this information provided to me, I accepted responsibility (mistake two). The HR at the company I work for received a garnishment for my pay. I intervened and starting paying Florida Department of Education directly. I missed two payments and they reinstated the garnishment which is %15 of my pay. I have made a few mistakes regarding this situation but none worth me paying back a loan I did not utilize. If an affidavit can be submitted to my employer for the garnishment of my wages, documentation can be provided supporting my use/non-use of this loan. I am prepared to get a lawyer. I do not believe I should be held accountable for money I did not use. Is there a law saying I have to pay this back even though I didn't use it? Let me make this clear: I did not receive the money for the loan, the school recieved it. I have been paying on this loan because I thought I had no other recourse. These people have gone to extreme measures in deducting my pay for reason I don't feel responsible. If there is a written law that says I am, please provide references. Otherwise......

  2. #2

    Default Re: Never Used Student Loan - Wages Being Garnished

    You should have properly withdrawn from school. That said, see if the school will refund you the tuition for the class based on the fact that you never attended, assuming the registrar will have a record of your non-attendance . However, there may be a time limit for that depending on the school's policy. If you are successful in getting refund, you may be able to use that money to make an offer in compromise on the outstanding balance to Sallie Mae--good look with that though. The refunded tuition amount will likely not cover the accumulated fees, interest and penalities, which have likely been capitalized onto the original principle.

    You may not have received the loan, but the school did on your behalf. How was it to know you weren't showing up for classes if you didn't properly withdrawl? Is this a Federal Title IV loan? If it is, check with the Department of Education Student Aid Ombudsman to see if they can help you. There are a bunch of administrative rules that apply to those loans over and above what "the law" says. If you can show that you did not receive an educational benefit from the loan, you may have room to work something out, then again may be not.

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