How long will it take to process a student loan?

Victim of Student Loan Fraud?

• Hello everyone, I’m in need of some serious advice. This might be long, but I’m in desperate need of some help. May ’10 I started a local 2-year culinary school (Southeast Culinary & Hospitality) in Bristol, VA. I was in the process of filling out paperwork, I applied for a Federal Pell Grant, which I received. After I received the grant, the owner of the school (a local “chef” Richard) told me that all my schooling was covered by the grant and I wouldn’t need to take out a loan. Some months after starting I was told that my money was never dispersed and the schools best advice was for me to drop out the semester and restart it, which I done only to have the same process happen again. It was always my money dropped, then they made a mistake and it didn’t drop, and over and over again. Keep in mind that Chef Richard is a gambling addict, and his boyfriend (yes) worked in the office, so when they had a falling out his BF let it out to a few students that Richard had taken their financial aid money on a cruise to Alaska and gambled it away, after he cancelled them and never sent the money back. He was also investigated several times during summer ’10 over suspicious things happening to student’s money, but they never can find anything. Numerous students have also taken him to court for the same problems, only to lose because somehow Richard gets by with it. After too much BS with my money never showing up, I quit. Richard told me that he would send my withdrawal forms, and never did. I asked him several times only to have him blow me off and say he would take care of it with FAFSA. 5, 6 months after I quit, I start receiving calls, letters, and eMails from FedLoan about my delinquent repayment of my student loans. I never could figure it out. I got online to my FedLoan account and the loan that I’m being contacted over was taken out 11/24/2010, but I quit 09/27/2010. It said cancelled, but apparently the money was never sent back to them. My enrollment status also said “withdrawn as of 01/10/2011.” It said that my money had been dispersed to the school the entire time I was there. The day after I quit, I asked for my withdrawal forms, and was told they would be mailed to me. They never were, I asked again, Richard blew me off, saying he would take care of it himself, which I’m assuming he didn’t until he got another payment from FAFSA for me. I called the financial aid office a few days ago and spoke with someone and told him what I’ve just told you all and how shady the place turned out to be. I was asked if I had my Master Promissory Note, and I told them I had my PIN. They told me that Richard was legally required by law to give me a copy of it when I signed it. Which he didn’t, and that a loan shouldn’t have been taken out unless I didn’t qualify for the grant, which I did qualify for. Also, that if a loan was taken out, that I should have been asked to sign a contract with whatever bank. I was never asked, nor did I sign such a contract. I was told to go to the school and get the copy of the Master Promissory Note. I went there today and he practically refused to give it to me. I called FedLoan back and told them, in which they said they couldn’t deal directly with the school and that I needed to call the Dept. of Education. They were closed already (it was after 5pm). I talked to a friend of mine who’s still going and said that a student turned him into someone and that he’s being investigated again (he didn’t know for what), and I told that to FedLoan, which whoever I talked to acted like it wasn’t a big deal. I really have no proof that he didn’t give me the papers or that I didn’t sign the loan contract other than my mother (no one in the office will speak up) who was there. If he forged my signature, then, well, that really doesn’t help me any. All he done today was dance around everything I asked or said to him. I guess what I’m really asking is for some advice on what I can do, who I can contact for better help, or what can be done to help me out. I’m unemployed and have been looking for a job for the past 3 years (small town, no jobs), so I can’t pay the loan back, and I can’t afford to have any future wages garnished for a loan that I didn’t authorize. I would greatly appreciate any help I can get. I’ve thought about a class action lawsuit, but I can’t get anyone to do it because they don’t think it’s worth their time because he’s got so much money, and has gotten away with so much, they think he’ll just buy his way out of it all, so I’m really on my own here. I appreciate any advice and help. Thank you all so much in advance! <3

• Answer:

  Your best bet would be to hire a lawyer or at least go to a consultation appointment and see if you have a case. If the financial aid office said you were supposed to see something that you didn't, then the chances are that they screwed you over. Whatever the case may be, get on this ASAP because having those loans out there and unclaimed means your credit score is going to be in trouble which can cause future problems. P.S. Just saw that you were unemployed. In some cases you may be able to fight for him to pay your attorney's fees. I would see if this is possible. Since it is a civil case, it might be.