student loan Quagmire

I had something like that happen to me. The student loan processing company in our area forgot to make backup tapes, and then their mainframe crashed. They lost all of their records. They did a reconstruction of records, and claimed that I owed about $5000.

What happened is that I paid double payments to pay it off early. When they reconstructed their records, they assumed I paid off at the normal rate, and still had years to go.

I ended up going though all of my boxes of records and I found every single last cancelled check. I was able to prove my case. The problem is that many people do not keep their records, so they have no way to prove anything. Your friend is going to need to come up with statements, cancelled checks, bank statements, or something to prove that the payments were made. Beyond that, she could try to submit an appeal and state that it is unrealistic to expect someone to keep records for 24 years when even the IRS says that you only need to keep stuff for 7 years.

-john-

Thanks for the idea- to contact the state: Michael

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