About 6 years ago, I refinanced my undergraduate education loans through a loan consolidation program offered by Wells Fargo Educational Financial Services. I received offers to do the same from other companies that didn't have the same good reputation Wells Fargo had, so I went with what I thought was the reputable company.
A couple years later, I lost my job, and applied for a temporary loan forebearance so that I could have a couple months to look for a job, and not have to worry about paying my loans while I had no income. I was denied. I thought this was just the banks perrogative, so I accepted this.
Shortly after, I entered business school, and applied to have my loan payments deferred until I graduated. Again, I would have no income coming in for the next two years, and deferrments are something that are typically offered for school loans. Again, I was denied. I complained to Wells Fargo, and they told me that my loans were no longer considered to be educational loans, and are now a private loan. So therefore, they were not inclined to give me any help, even if I were going on to continue my education with no income coming in. However, every year, they send me an interest form showing the thousands of dollars I pay a year in interest, which I am alllowed to write off of my taxes every year. If this is not an educational loan, how is that possible???
So, during those two years, I had to pay my loan payment of $600 (on average) using the funds I was getting through federal education loans. In total, approximately $24,000 of the money I took out in graduate loans were used to pay the undergraduate loans I had consolidated through Wells Fargo.
After graduating business school, I was (and still am) unable to find a job. Wells Fargo was "gracious" enough to extend me one 2-month payment extension, where I was allowed to not pay without penalty. Once that 2 month period ended, I called again to see if I could extend that benefit, since I still have no job. I was told there was nothing more they could do for me.
So in total:
I've had no steady job since november 2004, yet have paid every single payment they requested even though I had no income.
I've taken out and extended my credit cards to $28,000 to pay rent and my loan payments...if I wouldn't have had to pay my loan during school, I would have had plenty to pay my rent during school.
I am able to deduct up to $2500 of my educational loan interest every year, yet Wells Fargo insists my loan is not educational.
Wells Fargo is showing absolutely no flexibility with me, though I've jumped through hoops solely for the purpose of maintaining my credit history and my responsibility. I've overleveraged my credit so that i could SURVIVE, and had no other recourse because Wells Fargo has been sneaky and underhanded in its handling of my educational loans. I am stuck, and have nothing to show for it but huge amounts of debt.
Chrisryanj
Stamford, Connecticut
U.S.A.