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wait so lemme get this straight, the govt shut down your lender for being predatory...but still makes u pay the predatory loan????? wtf kind of system is this??????
It's actually more nuanced than that. When the Department of Education terminates a servicer's contract, they're not necessarily declaring all loans they serviced as predatory. They're often citing contract violations, poor customer service, or mismanagement. The loans themselves are still valid federal obligations, but they get transferred to a different servicer who hopefully will manage them properly. That said, there are specific cases where loan discharge might be available - like the Borrower Defense to Repayment program if your school misled you, or servicer-specific settlement programs like we've seen with Navient.
UPDATE: Thanks everyone for your helpful responses! I've learned so much. I was able to confirm this is indeed a Parent PLUS loan at 7.9% interest that my mom took out for me, which explains the high interest rate. I've applied for an Income-Contingent Repayment plan and am also looking into consolidation options. I was also able to get through to someone at FSA (thanks for the Claimyr tip, it actually worked!) and they explained that several periods of deferment had caused interest capitalization, which is why the interest growth seems so extreme. They're sending me information about the specific borrower protections available in my situation. I feel much better now that I understand what's going on, even though the situation still isn't great. I'll update again once I hear back about the ICR application!
The entire financial aid system is DESIGNED to be confusing and inefficient! They create these arbitrary deadlines and then drag their feet processing everything. It's absolutely RIDICULOUS that parents have to jump through so many hoops just to pay for their kid's education with LOANS WE HAVE TO PAY BACK WITH INTEREST!!! The Parent PLUS loan is especially predatory since there's basically no borrowing limit and the interest rates are higher than student loans. UNC system knows this and takes their sweet time processing these loans because they know parents are desperate. My advice? Call them DAILY until it's processed. Be the squeaky wheel.
Just to follow up on my earlier comment - make sure you've completed both the Parent PLUS application AND the Master Promissory Note (MPN). Many parents don't realize these are two separate steps. You also need to complete entrance counseling if this is your first Parent PLUS loan. Also, if UNC-G's timeline doesn't work for you, remember you have other options: 1. Most schools will place a temporary credit on the student's account if they can see the Parent PLUS loan is in process 2. You can request a payment plan to break up the balance 3. Private education loans are another option (though usually at higher interest rates) Hope this helps ease some stress!
this happened to my cousin and he ended up having to wait until he was 24 to go to college because the school wouldnt approve his override. so unfair
I'm so sorry that happened to your cousin. While some schools are unfortunately rigid, most institutions today are much better about approving these overrides when properly documented. The key is providing thorough documentation and following up persistently. If one school denies it, I always recommend trying another institution, as policies can vary significantly.
my nephew got approved at one school but denied at another for the EXACT same situation last year. makes no sense. the fafsa system is broken
Does anyone know if its possible to change which parent fills out the form after youve already started? My daughter put her dad but really i should be doing it....
Just wanted to update - we carefully reviewed who provided more financial support last year and determined it was me (slightly more than 50%). After answering the questions accurately, the system correctly asked for my information. My ex-husband won't need to provide his information even though we're in the same household. Strange new system but at least it's working as designed. Thanks everyone for the helpful explanations!
Chloe Robinson
Update: I checked the Federal Student Aid technical support bulletin and this is officially recognized as a known issue with the 2025-2026 FAFSA. The current recommendation is to wait 72 hours for the system to correctly recognize the signature status. If it doesn't resolve after that time period, you'll need to contact FSA directly. One important thing to note: even though it appears "submitted," your FAFSA isn't being processed without the signatures. Your SAI calculation won't begin until all signatures are properly recorded. So while frustrating, this shouldn't impact your final aid outcome.
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Malik Jackson
•Thank you SO MUCH for checking! That's really reassuring to know it won't impact our final aid calculation. We'll wait the 72 hours and then try the steps everyone suggested if it doesn't resolve itself.
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Isabella Oliveira
Update on my situation - I finally got through to someone at FSA after using that Claimyr service someone mentioned above. The agent confirmed it's a display glitch and unlocked my FAFSA so we could add the missing signatures. It's officially submitted properly now. Such a relief!
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Malik Jackson
•That's great news! I'm still waiting to see if mine fixes itself in the 72-hour window, but if not I'll try that service too. Thanks for updating us!
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