Consumer complaint received 2022-11-19
Company: Granite Edvance Corporation
State: NH
Product: Student loan
Sub-product: Private student loan
Issue: Dealing with your lender or servicer
Sub-issue: Trouble with how payments are being handled

Complaint:
XXXX XXXX XXXX XXXX XXXX who was bought out by XXXX XXXX XXXX was charged with engaging in widespread misconduct that violated state consumer protection laws and/or made widespread substantial misrepresentations about its educational programs, both of which are grounds for borrower defense to repayment under the borrower defense regulations ( 34 C.F.R. 685.206 and/or 685.222 ). 

The below message was just received by me on the XXXX and Granite State Management are telling me they don't abide by the same laws and regulations of the federal government. 

The College was charged with fraud that violated consumer protection states laws that I should be protected by. If they ( The College ) didn't make such widespread accusations I would of never took out the private loans to attend to the college. 
___________________________________________________________ XX/XX/XXXX Dear XXXX XXXX : Subject : Student Loan Discharge Based on Borrower Defense Evidence The Department of Education ( " Department '' ) has determined that the loan ( XXXX ) you received to attend a school owned and operated by XXXX XXXX XXXX from XX/XX/XXXX through its closure in XX/XX/XXXX are eligible for full loan discharge. This means the remaining balance on the loan ( s ) will be forgiven. You do not have to make any more payments on the loan ( s ).

Your loan ( s ) will be discharged as part of a Department action ( " Group Discharge '' ) to discharge all outstanding loans for attendance at XXXX XXXX XXXX that first began from XX/XX/XXXX through closure in XX/XX/XXXX after finding that it engaged in widespread misconduct that violated state consumer protection laws and/or made widespread substantial misrepresentations about its educational programs, both of which are grounds for borrower defense to repayment under the borrower defense regulations ( 34 C.F.R. 685.206 and/or 685.222 ). The Department is discharging your loans without requiring you to file an application because of the pervasive and widespread nature of the school 's conduct.

You also may receive a refund for prior payments made to the Department on your discharged loan ( s ) related to XXXX XXXX XXXX. Your servicer will let you know if you are eligible for a payment refund, which would be mailed to you. Please check your online account with your loan servicer to ensure your address is correct so you can receive any refund. Otherwise, you do not have to take any further action to receive your discharge. Your credit report will also be updated to reflect this discharge when it is complete. 

If you do not wish to accept this discharge, please contact your servicer within 30 days of receiving this letter. 

It will take the Department some time to process your discharge. Until the Department completes its work, your eligible loan ( XXXX ) from XXXX XXXX XXXX will remain paused in forbearance/stopped collections, and we will not ask you to resume making payments. If your loan ( s ) are in default, we will not attempt to collect on the loan ( s ) being discharged. If you have other loans not covered by this group discharge, you will enter repayment and/or collections when the national pause on student loan repayment and collections ends. 

If you have questions about this notice, please call our borrower defense hotline at XXXX from XXXX XXXX on XXXX or from XXXX XXXX on Saturday or Sunday. 

Sincerely, XXXX XXXX XXXX Operating Officer Federal Student Aid

Company response to consumer: Closed with explanation