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Acs / Added unsubsidized interest on subsidized loan with no justification and ignored complaint

1 P.O. Box 7051 Utica, NY, United States Review updated:
Contact information:
Phone: 800-835-4611

My school loan changed hands multiple times--so many times it became confusing. Eventually, it ended up with AFSA, that then changed its name to ACS.

I never missed a payment, I never made a late payment, and I never took out an unsubsidized loan.

One day I looked up my account online and discovered close to $200.00 in unsubsidized interest listed as owed. I called the company and I wrote to them. After multiple phone calls and multiple different reasons provided as to why that debt was on my account, the last explanation provided was that they did not know why it was there because it was there when they took over the loan, thus I had to pay it. I wrote to them again, sending a registered letter they had to sign for, outlining the problem and my interactions with their company, disputing the debt, instructed them to provide an explanation in writing and that the interest be removed from my account.

I received one letter telling me they would investigate the problem and get back to me. Illegally, I never heard from them again. They continued adding interest to the unsubsidized interest. Eventually, I paid them $500.00 that I never owed them but I paid it when I paid off the loan in a large lump sum because we were buying a home and I wanted a perfect credit score. When I paid it, however, I included a letter telling them why I was paying it and that I still disputed the debt.

ACS never bothered to contact me, and they took their sweet time posting my final large payment so that they could charge the federal government more interest on the subsidized loan before they closed the account.

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  • Ba
      13th of Oct, 2008
    0 Votes

    Wrong acronym. Should have said ACS.

  • Sc
      22nd of Feb, 2009
    +1 Votes

    I had student loans with Sally Mae and Mohela. Sometime in June 2006, I was pressured into signing up a consolidation deal with a company called Academic Funding Foundation. Little did I know that my loans would end up with ASC with significantly higher interest than I have been promised by the consolidating company. Like many others, I have fallen victim to a well-engineered scam run by people who are out to defraud the struggling college graduates. Is there any recourse or remedy?

  • Je
      11th of Mar, 2009
    +1 Votes

    ACS took over my loans without my permission or knowledge and I have had headaches with them ever since. The biggest one being that they added my undergraduate loans on to my consoldiation twice. It took me 1/2 a year to get this fixed (with negative credit reports for this period, because I consistently paid them the correct amount of money - but not for the extra amount of loan). They outsource much work. I have never talked to an American in my couple of dozen unpleasant phone calls. If this is government loan work, let’s give americans the jobs.

  • Na
      26th of Sep, 2011
    0 Votes

    I just called ACS today. They hold my student loans and have been a complete nightmare to work with (as I see from other people too). On July 27th I received 4 separate pieces of correspondence from them in response to my application for reduced income payments. They were each conflicting and contradictory. I emailed ACS outlining what each letter said; however, no one ever got back to me. I emailed them again in August and no one got back to me. I then called and they said I was 40 days past due on my payment. They were rude and ill-informed. They had no knowledge of my written complaints and request for assistance. I said I can start paying them in October and asked for some payment arrangement so I wouldn't be behind in my payments. They said "well then you'll have to apply for a forbearance" for one month and interest will accrue. They said I would then have to reapply for reduced income payments. I asked if they had a formal grievance procedure in place and they said "no". What a Kafka-esque nightmare to be in. I did, however, notice that they are owned by Xerox and retrieved the email for ethics complaints. Is there a class action suit or anything I might join with others in? Thanks. Nancy

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