Consumer complaint received 2018-12-13
Company: Oklahoma Student Loan Authority
State: GA
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with your lender or servicer
Sub-issue: Received bad information about your loan

Complaint:
This letter is in reference to a seven-year ongoing student loan issue with the Oklahoma Student Loan Authority and XXXX XXXX University. 

During my duration as a student at XXXX  XXXX University issued a series of student loans in my behalf for education purposes. At the time of enrollment and prior to attending I notified the register and financial aid department that I was a XXXX  dependent through Title 1 and my parent was a recipient of Social Security. 

After being accepted and allowed to study during mid semester there was an issue with financial aid. I was presented and offered student loans based on the fact that I was an out of state student and my parent was on fixable income based on XXXX. During my time at the school I was forced to withdraw per recommendation from the XXXX  XXXX University Staff administrative decision while on winter break after I was denied a Family Loan total in over XXXX. No counseling was involved in applying for this particular loan. I was only approved for two FFELP loans. 

Due diligence was not following upon my withdrawal I was not given prior 30 day notice nor did I secure my items from my door room. A letter was sent out to me the week of winter break XX/XX/XXXX. 

That letter disclosed that school and federal debt would be discharged due to my lack of ability to repay or afford the debt owed to the school and federal debt taken to secure for education purposes for the course of two semesters. I only completed one full semester. XXXX Letter is attached as Exhibit 1. 

This issue concerning the federal debt reoccurred in XXXX based on late notice given by OSLA therefore I provided the letter that was sent from the administration office at XXXX  XXXX University. No additional actions were taken and no correspondences were received from OSLA or XXXX. 

In XXXX, a letter was sent to my employer for wage garnishment for loans taken from OSLA. Prior to that date I did not receive any correspondences from OSLA from the initial complain in XXXX. 




Violation That Occurred ( 1 ) Deception and Misleading Information : a. I was ultimately mislead and deceived by XXXX  XXXX University and Oklahoma Student Loan Authority about this discharged debts. After being given a letter from the administration at XXXX the letter stated that all debts would be discharged ( school and federal ) based on my inability to pay. 

( 2 ) Predator Lending a. My inability of payment was a known fact by the XXXX administration and student loan department based on my enrollment factors and verbal notification. It was predatory loan on behalf of XXXX XXXX XXXX and OSLA. Whereas the Oklahoma Student Loan Authority was notified by XXXX that I was an XXXX XXXX   displaced student with XXXX income. 

Based on an email received from OSLA XXXX XXXX Senior Regulatory Compliance Specialist. The loan that I was given was specifically designed for this : The approval of student loans is, by design, not based on a students income or credit record ( or lack thereof ). Student loans were created so that persons from disadvantaged backgrounds, who might not be otherwise be considered creditworthy, could obtain the funds necessary to pay for education Email is attached as Exhibit 2 ( 3 ) Lack of Education Given about to loan XXXX  and notification of borrowers rights a. XXXX and OSLA forwarded a document that indicated that loan counseling was administered. That document stated that it was a profile created by XXXX. The document is not signed or initialed by myself. Only stamped without signature of receipt. See attachment Exhibit 3. 
( 4 ) XXXX did not inform the OSLA of their withdrawal decision until XXXX. 
( 5 ) The OSLA Loan history is incorrect no letters were mailed in efforts to notify me ( 6 ) Wages were garnished for a loan that should have been discharged According to the correspondences received OSLA and XXXX offered me a predatory loan that has following me over 11 years and in act of retaliation refused to communicate, resolve, and discharge the matter as promised by their letter. 

The default has been on my credit report, which has resulted in XXXX  and equal opportunity for housing, employment and education. OSLA and XXXX  understand the effects of how important federal debts and their lasting effects. 

Ive attempted to resolve this issue for 10 years to date.

Company response to consumer: Closed with explanation