Report says some who borrow money for college with private loans hit repayment snags

  • Article by: KIMBERLY HEFLING , Associated Press
  • Updated: October 16, 2013 - 4:25 PM

WASHINGTON — Federal officials have received more than 3,800 complaints in the last year from borrowers of private student loans, with common problems related to payment processing and requests for loan modifications.

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notmnsureOct. 16, 13 3:32 PM

Sounds like the biggest snag is naieve youngsters signing up for loans they didn't read and can't afford to repay due to bad choices.

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notmnsureOct. 16, 13 3:35 PM

Smart enough to go to expensive schools but waaaay too stupid to read and understand the paperwork before signing the load application.

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cinemajayOct. 16, 13 3:37 PM

"—Late fees were charged even after payments were submitted before the due date." How is this not illegal? No bank should be able to assess fees once a payment is made prior to the due date.

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merlinzOct. 16, 13 4:02 PM

These Private Loan servicers do their best to keep things confusing so you dont ask questions. I made advance payments on my loans electronically but they still will not reflect on the online statement, you have to call them anytime you want your updated balance.

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thoroughbred21Oct. 16, 13 4:46 PM

This is a market ripe for corrupt practices. It is exactly like the home-mortgage explosion and the tons of defaults produced by poor lending practices. We are still at the mercy of the big banks, and they have no interest in anything socially beneficial. Students: Beware!

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unicorn4711Oct. 16, 13 5:35 PM

The line of "should have read the fine print" gets old, really fast. A global economy requires advanced training. That costs money. The preferred way to pay is with someone else's money through scholarships or inherited trusts. That's not an option for everyone. The next best option is Federal student loans. Prior to 2009, those only covered a portion. A lot of kids went to private lenders because it was do that or not gain the training you need to be a strong member in a global economy. Frankly, thank God so many kids took the chance they'd succeed. I'm in favor of having people in the community that can compete with our competitors in Asia and Europe. I'm in favor of a strong economy for the United States. I recognize that my job, my social security, and my life in the United States are interconnected to the success of the younger generation. There won't be any social security or tax revenue if we don't have a highly skilled workforce. I'd much rather invest in the economy of tomorrow and the human capital of Americans than build more bombs, start more wars in countries we don't understand, or bail out more banks.

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Lifeguard06Oct. 16, 13 6:13 PM

How about the over 60 crowd retire so we can get out of the service jobs we don't want or had to get after we got the last in first out notices.

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nflcrooksOct. 16, 13 8:02 PM

How about the over 60 crowd retire? According to the corporate lobbyists you are not qualified to do our jobs and when we do finally retire we will be replaced by cheap foreign workers imported by the US Congress. So start making some smart educational and political choices or you can plan on spending the rest of your life competing for low wage jobs thanks to progressive immigration policy.

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obamafone4meOct. 16, 13 8:12 PM

3,800 complaints out of 14 million loans. Not sure how many are even legitimate. This is a non-story.

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ebnub1Oct. 16, 1310:28 PM

My Stafford loans were transferred to ACS for servicing right after graduation. My payment plan according to their website was "Level" and straight from their website it explained this is a payment plan with a maximum payment period of 10 years. I noticed after a year that my principle wasn't going down very quickly. I called in and found out that I was on a 25 year payment period and they have multiple other "Level" payment periods they don't even say a thing about on their website and I was on one of them. Crooks.

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