Can student loan purchaser change terms of the loan?

Asked over 3 years ago - San Francisco, CA

After 10 years of on-time payments with Wells Fargo, WF sold my loan to ACS Educational Services. Before transfer, WF sent a letter stating my terms would remain the same. My original loan agreement states 155 payments of $180. ACS recently informed me that they are raising my payments to $400 a month. When I complained to the BBB, ACS responded that they would not be honoring WF's repayment terms and for me to apply for deferment if I couldn't pay $400 a month. The BBB closed the case and told me to hire an attorney if I didn't like ACS' go pound sand statement.

Attorney answers (2)

  1. Robert Harlan Stempler

    Contributor Level 19
    Best Answer
    chosen by asker

    Answered . The note that you signed when you applied for the student loan contains all the terms and it cannot be changed after the loan is approved and funded. Only the interest rate may vary, depending on the terms of your particular loan, if it is a variable rate loan.

    The BBB is not a good place to complain about this problem. ACS may also have an ombudsman or other dispute resolution office. You also should send a written dispute to the new company to advise them in writing that you dispute this new arrangement. Please see the sample letters on my web site, such as letter 2.1, which is for billing disputes regarding credit cards, but you can modify it to suit your needs. You will want to send it by certified mail, return receipt, and retain a copy for your records. You should include a photocopy of the original note and make it clear in your letter that you intend to continue paying the $150 payments, per the note.

    Also, you should continue paying the what you can. If you cannot afford $400, until this problem is resolved, pay the $150 as you did before every month, so you have make all your required payments on time, per your original contract terms. Be sure to retain proof of payments, such as keep a copy of the cancelled checks in a file or on your computer, so you have evidence of making all the payments to the new company if you need it.

    If they continue to mess up the accounting of your loan payments and credit history, perhaps then you will need to consult directly with a consumer attorney. and possible litigation.

    Robert Stempler (please see DISCLAIMER below)

    NOTICE: The above statements are provided for general information purposes only and are not intended as legal... more
  2. Pamela Koslyn

    Contributor Level 20

    Answered . You're asking what your contract rights are, and no one on Avvo knows what the exact language in your particular contract is.

    You need to review your loan docs with Wells Fargo to see if they can assign your loan to someone else, like ACS. If they can, then you have to see if the terms of your loan can change, and if so how and when.

    PLEASE READ THIS BEFORE YOU COMMENT, EMAIL ME OR PHONE ME. I'm only licensed in CA. This answer doesn't make me... more

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