Took out a Parents Plus Loan for my oldest child’s college. Right about the time payments were due had to defer them due to economy. Unable to find secure employment. Had to go on state assistance (embarrassed) have 3 minor children at home. ACT (account control technology) offered me another way. Sounded good to me being very nieve to financial business. Make a small payment for a number of months, the talk to them about regular payment after that time.
When doing the ending paper work I’ve noticed 13,000 in fees and has added a lot to the amount I owe. I feel I was scammed by the loan being I didn’t understand whole process, and now by ACT.
How do I handle this? Should I go to the DOE and see if I can get a smaller payment or stick with ACT? Just like everyone else I will never be able to pay this back. I was out of work for too long, and still have a family to support myself and 3 dependents.
I think this article will lay out your options. See The Best Way to Lower Parent PLUS Loan Payments.
It sounds like your loan(s) were delinquent or in default at one point so a 20% collection fee may have been added to the account and the interest accrued as well.
From what you’ve described, the Income Contingent Repayment Plan seems to be a logical fit.
If you would like to file a complaint about Account Control Technology, click this link.