Legal Question in Credit and Debt Law in New Jersey

I had a Perkins Loan from Community College in Philadelphia that went into default. It was sent to a collections agency and paid off in 2008. The problem is that it was never taken out of the student loan data base and continues to keep me from going back to school. The college states that the Department of Education has the ability to remove the default status and the Department of Education states that since Community College is where the loan was given, they are responsible for removing it. I have been back and forth with both of them and I am very concerned about being dropped from school in two weeks. I sent Kaplan University a copy of the default clearance letter and was told that was sufficient. I am now being told it is not. I have suffered a great deal of anxiety over this and the thought of being asked to leave school is very upsetting when I recently lost my job and have a daughter to support. Apparently someone dropped the ball and no one cares about what my family and I are going through because of it. Can you help?

Asked on 3/16/11, 7:19 pm

1 Answer from Attorneys

John Corbett Corbett Law Firm LLC

Your remedy is to sue the community college and perhaps the federal government for slander of credit. By naming all parties in the suit, one of them will sort it out. The problem is that this is not inexpensive and there is no guarantee that you will be able to recover your costs.

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Answered on 3/16/11, 7:39 pm

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