Sallie Mae ripoff My son returned from prison to start a new life going back to school Wilkes Barre PA

I am sorry for all of your woes but your problem is with the school not the financial institution that gave money for your son to go to school.
You need to sue the school or your son and pay back the money that is owed the financial institution. They in good faith gave you the money for him to get an education, they did nothing wrong. It was the school, go after them.

I used to work in college admission offices, and I can tell you that this is not an uncommon problem.

Students who no longer attend MUST officially withdrawal from school. You go to the registar's office and you fill out a form. You retain a copy of that form. The school will have a refund policy based on the time frame between first date of attendance/class start date and date of withdrawal. It is quite possible that after 2 months of enrollment, your son would not be entitled to a refund--check with the school, look at the refund policy in the catalog. Most schools pro-rate refunds but after a certain point you don't get a refund at all. This means tuition is due and the school can and will use that student loan money.

The school can take the student loan and apply it toward tuition. If that's what they did and your son did not officially withdraw or did so after the last refund date, the school will bill for the entire term (semester, quarter, trimester, it depends on the school). If your son simply stopped attending classes, he is most likely "screwed", since the school had no way of knowing that he was no longer enrolled---it is up to the student to inform the school, not up to the school to track down each individual student.

Many technical schools are greedy diploma mills, set up to maximize student loans and not give the student what they are paying for. Students default on the loans, and eventually the sleazy schools lose their accreditation, but not before burning a lot of students.

Unfortunately, most student loans are government backed loans, and they will haunt you forever, so it is best to deal with it as responsibly as you can. Even if you declare bankrupcy or default on a loan, it will go on your credit report and any IRS tax refunds you receive will be snatched to be applied toward the amount owed on the student loan.

If your son did officially withdrawal and the school misappropriated the funds, go as high up the school food chain and threaten to report them to their accrediting agencies. No school wants to go through an audit, so maybe there is something they can do to work it out.

Good luck to you and your son.

Please call tomorrow...on Monday the 5th.

The US department of Education.

Your problem is two fold.

The school has taken funds they were not entitled to yet.

The school is paid in increments as your son attends and even technical schools and trade schools have quarters. 2 months may very well be one quarter. They may be entitled to one quarter of the money for the tuition that is due. The rest must be returned to the lender NON-DISBURSED. You of course would owe what was used.

The reason the call is important, in regulating the student loan buisiness the governement has some cut off point federally mandated you have to ahve attended at least this much school before they are allowed to keep tuition at 100% if you fail to finish. Regardless of reason. The government debts have special rules and they also are subject to the fair credit reporting act.

Now the issue of the poor school facility also goes to the department of education but to a different department. You can file a complaint against the schools accredidation services not accurately portrayed, recieved etc.

Too Many of these and the school can kiss its Loan and More importantly it free grant money goodbye.

The Dept. of Education people may be able to help you with getting part of the $7000 dollars back. If your son in fact only attended 2 months of a 1 year program......he has to pass the 60% point before under federal guidlines he is no longer elgible for the refund.

Sallie Mae didn't rip you off they are just the servicer, you need interference from the Dept. of Education. and Sallie Mae also has provisions in your loan papers about what the federal requirements are.

PS. my school closed and I never got my education, they attempted to saddle me with 20K in debt. The Us department of education helped me get the monkey off my back maybe they can help you too!