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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: minimalistmike on June 06, 2015, 11:16:42 AM

Title: Student Loan Debt Validation?
Post by: minimalistmike on June 06, 2015, 11:16:42 AM
Hey all,

I think this is my first post, but I am a long-time lurker.

I was wondering if anyone has attempted to discharge their student loans, by taking their student loan holder to court.  It looks like student loans may have a lot of poor paperwork backing them up, like the robosigning with home mortgages.  Especially if the loan has been sold multiple times. 

About my situation.  I finished graduate school in '06, with around 65K in debt.  I consolidated it all into a 30 year 1.5% interest loan.  This loan was sold a few years later, to ACS loans, who currently holds the loan.  ACS also stated my new interest rate was 3.5%, although I have no recollection of signing anything or agreeing to this new loan or increase in rate.

After googling ACS, I found out they are a subsidiary of Xerox, and have many complaints against their business practices.  It seems they have a history of losing people's paperwork, submissions of other kinds, or will purposefully delay cashing peoples checks, all in the name of increasing fees for themselves.  They have also been caught numerous times applying extra payments made by debtors to interest, making the extra payment essentially worthless.  They have also been caught trying to collect on zombie debt.  Debt sold for pennies on the dollar that is past statute of limitations or other reasons that should make it uncollectible.

Anyway, these articles make me think there is a chance to get some or all of this debt dropped.  Thoughts?