Friday, October 14, 2011


Dear old Direct Loan Services,

Thank you for auto-paying my account on October 7, even though due to your website changes a lot of people had to wait for their regular monthly charges to go through several days later, thereby getting a "late" status marked on their accounts. I appreciate your making an exception for me, especially after I called your customer service department on October 5, and was assured that it was impossible to pay anything that week.

However, I revoked auto-pay several months ago, and had deleted that checking account from your system, since it's an old bank account that I was about to close. I had attached my new bank account information, for future auto-pay capabilities (so I could get a quarter percentage discount off my interest rate) but for some reason, you chose to go with the old, familiar account. This thoughtful gesture cost me $35 in overdraft charges, even though I had asked for the bank to not honor overdrafts and instead refuse any charges that would put my account in the negative. (Don't worry, they will be getting a letter from me, too.) I don't suppose it would be possible to have that deducted from my balance?

I'd also like to talk to you about the matter of the rebate I was promised when taking out loans with you - $279.00 worth of rebate, actually, which you confirmed that I earned two months ago, but which shows as $0.00 applied to my account, even though the rebate status is "earned". I'd like to know where and when that money will show up, or if I'll continue to be charged interest on that amount for the forseeable future.

This little rendezvous has me wondering if there is some way to get consolidated far, far away from you. I can't trust what your messages say, I can't trust what your customer service reps say, and I can't trust anything on your website, so now I am wondering whether you have my balance right, or indeed anything at all. Dear Direct Loans, thank you for ruining my Friday night.



  1. Yikes! Thank you for the warning, though. I haven't had to start paying back Direct Loans yet, but that day will come, and I am scared for it!

  2. One more incentive for you to save up uber dollars for your house downpayment, is that once you exceed a 20% downpayment, you might be able to refinance your student loans into a HELOC using any other equity. The rates are pretty good on a HELOC and chances are highly likely that any lender is easier to work with than a student loan company (except maybe BOA).

    My student loan servicer makes me want to hit my head against a wall. Their only interest seems to be tricking me into missing a payment or extending the term of my loan. I can't even get a copy of my amortization schedules.

  3. Thanks for the idea, Walnut! I bet you're right that an interest rate on a HELOC would be better than what I'm getting right now from direct loans.


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