Direct Loans review: Student Loan Fraud

I recently consolidated two student loans under Obama's Student Loan Consolidation progam, which allegedly recognized the many problems that borrowers have with student loan payments.

This consolidation program was highly touted by the Obama administration as a friendly and helpful opportunity to resolve student loan issues. Even better, I was promised that my payments would not only be lower, but I would have the added bonus of combining the two loans into one payment (two loans which I could never combine before).

With all of these great promises, I was hopeful about having a financial life again instead of all of my earnings going toward rent and student loan payments.

My two prior lenders, Sallie Mae and the U.S. Federal Government, were always helpful to me in the past and even bought out my loan from a very nasty company called Nelnet, whose prior collection efforts were beyond inappropriate. Sallie Mae and U.S. Government were always at the very least honest and respectful with me and worked with me with hardship forbearances.

However, after several months of making 100.00 payments, "Direct Loans" switched up on me (requesting payments in excess of 500.00/month) and is presently refusing to work with me despite me telling them what I am capable of actually paying. They don't want to hear about what I am capable of paying - this is apparently irrelevant.

I asked if I could opt out of this program since I've been mislead. My prior two lenders were always willing to work with me and understood my extreme circumstances and present condition of financial strain.

The Representative at William D. Ford Direct Loan Program (Direct Loans), whom I spoke to, could care less and told me that I cannot go back to the way it was since I have a legal binding agreement. I guess he never heard of misrepresentation.

I don't think this is what President Obama had in mind when he offered the Obama Student Loan Consolidation program. This is an outrage.

Also, Direct Loans mailed me a forbearance application to sign after telling me via telephone that I would be approved for a forbearance - I would just have to sign it and send it back. I did this and received a "declined" response in the mail dated December 6, 2012.

Direct Loans is just as bad as Nelnet and I want this company to work with me as promised and to stop their lies. Better yet. put me back where I was before.

PLease sign my petition at :
http://www.change.org/petitions/direct-loans-william-d-ford-direct-loan-program-lower-my-student-loan-payments