Here is how it works

Posted by Steve Anderson on October 17, 2000 at 15:52:39:

In Reply to: Re: Do I have a right posted by roni on October 17, 2000 at 15:50:26:

Many student loan servicers only consider paid in
full to refer to principal balance. That is probably
what they mean when the say the account is settled,
but not really settled. It is totally bogus. The
fact is, they are guilty of misrepresentation. It
is really false bargaining and breach of contract.
You should request copies of your files from any
parties you ever dealt with on your student loans.
The fact is you will never be paid in full on your
loans until you navigate the legal system. Even
then, who knows?
It's like the Hotel California, "you can check out
any time you like, but you can never ever leave."
Even if you are paid in full, you are not paid in
full. There is no way to know if you are ever really
paid off short of suing them. Even Roni knows this
(kind of). Who is the guarantor of your loans? Is
it a direct loan or FFEL?

Read The Student Loans Guide

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