Legal Question in Credit and Debt Law in Indiana

Cancelled Student Loan

Recently my student loans were cancelled by the U.S. Department of Education for False Certification by the school that I attended. I had 2 loans with the school, with one being paid in full. The second loan was bought by another agency and I have been paying this loan for the past 6 years. Because the loans were cancelled, I am entitled to my money back. I have already received back the first loan. However, the second loan is taking longer because the U.S. Department of Education sent the check to the other lender to pay off my balance and a refund of the remainder will be sent to me. My question is...since the loan was cancelled (as if it didn't exist) am I also entitled to all the interest I have paid on this loan within the last 6 years?


Asked on 3/20/03, 9:36 am

1 Answer from Attorneys
Eric Southward Southward & Haggard

Re: Cancelled Student Loan

You should check with the US Dept. of Education and ask what their rules are on this situation. I would be happy just getting the principle back if I were you. You possibly could get the interest back from the school you attended, it depends upon the circumstances. You may want to consult an attorney to see what your rights are. Make sure you bring all of your loan documents and correspondence with the Dept. of Education

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Answered on 3/20/03, 4:23 pm


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