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New Member
posted Feb 23, 2020 2:48:45 PM

How to Arbitrate Late Payments

I joined the Army in 2017 and was stationed in South Korea. I was in college until about 2 months before I joined and was told by my school counselor that FedLoan would contact me to set up a payment plan and begin collecting 6 months after I finished the semester. I was never contacted and debt collection began immediately. 8 months later I was finally contacted by a family member who was informed that my debt repayment was delinquent but I was never contacted or even informed that they were collecting since my contact information was changed to reflect being in Korea. This destroyed my credit score and I haven't figured out a way to fix the late payments reflecting on there even though I don't think it's fair. I paid off all delinquent debts and have been on time since then. What do I do to fix this? 

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1 Replies
Level 15
Feb 26, 2020 2:21:25 PM

see what benefits / protections you have under SCRA .. Is Fedloan aware you are in the military? 

 

They can't be charging you more than 6% interest on the debt while you are active military.  If they did charge you more than 6% , I would argue that ALL the payments were calculated wrong and you should not be reported as past due when they did not calculate the payments correctly.