Can I sue my student loan people?

Mark Ortega · #1 10-30-2007, 06:20 PM

Here is the story.

I was given a $9,000 student loan in payments of $1,500.

I received the first payment.
Then they pulled back the rest of the loan after saying they didn't know I was enrolled in a community college (even though I listed the college on the application).

They are now saying I still have to pay the interest rate on the original $1,500, thus violating the contract.

Also, it leaves me in a [censored] situation as I have no job.

DcifrThs · #2 10-30-2007, 06:38 PM

suing costs money...doesn't sound like youi have that much of it [img]/images/graemlins/frown.gif[/img]

Henry17 · #3 10-30-2007, 06:51 PM

Well actually it is very likely that there never was a contract. They obviously thought you were going to a different class of institution.

chopstick · #4 10-30-2007, 07:00 PM

You can sue pretty much anyone. I think your question is "Am I likely to win if I sue?"

Look up what the limit for small claims is in your state, and if it's 10k or under, knock yourself out. Otherwise, it may be time for that job.

BradleyT · #5 10-30-2007, 07:36 PM

They probably have encountered this before and have the proper legal terms in the contract to not lose in court. What would you be suing for - to get your interest rate down? That would save you like $50 over the life of the loan.

Mark Ortega · #6 10-30-2007, 07:51 PM

I would be suing for stress because they put me in a bind money wise to pay my rent and utilities when I was relying on their money to do this. Also hurting my schoolwork.

Henry17 · #7 10-30-2007, 08:11 PM

I have an LLB not a JD but the US system is similar enough that I don't see how you could win.

More importantly I don't see how you could afford to hire a lawyer.

Did you give the student loan people the name of your school when you applied?

Mark Ortega · #8 10-30-2007, 08:25 PM

Yes I gave them the name of the school.

Ps3tn0NcYk · #9 10-30-2007, 09:39 PM

Your best bet is to attempt to locate other individuals facing a identical situation from the same lending institution.

If this is a one time "clerical" mistake on their part, you are probably out of luck. If there is a pattern of this mistake occurring, then your prospects brighten a bit. Should the latter prove to be true, contact a attorney specializing in consumer law. If a class can be established, they will likely take up the cause pro bono.