Question:
This problem has been stewing on the back burner for a few years now, but has had to take a backseat to other personal issues in the queue. I have found many resources/stories concerning people who owe in student loans, but 99% did not consolidate with a private lender. I know I'm not the only one encountering this particular situation, but I need to find others dealing with the same. I spoke with my father today, who talked to both the head accountant for his workplace, and the prominent bankruptcy judge in the area.

Here is a summary of the conversation: - They were shocked at the 6% above prime rate (I'm not crazy after all), and think something is terribly wrong with the loan status - First and foremost, I need to find out if the loan company is an agent of the government, or at least to determine if they are mingling. Someone else mentioned this, that I need to find out exactly what role they are playing in my loan. I know that at least the credit card portion was paid immediately, so that would lead me to believe they are completely private. However, they will not negotiate my rate or terms, and don't seem to care if I file for bankruptcy. This would lead me to believe that the government was involved with some form of subsidization, at least in bankruptcy bailout. Regardless, if they ARE involved with the gov't, they can't legally charge these rates, or can they? - If indeed the company is entirely private, then I would be eligible for bankruptcy (Chap 13). -

When I get the lawyer recommendations, they will check the Markdale-Hubble ratings for me. - How to find and what to check for a good lawyer Now, here is what I still need to know: 1. What are my rights in terms of entitlement to information about my loan? 2. Is it within my right to request an entire history of my loan from day one? 3. Is this something I should attempt to ask for myself? 4. Which federal agency would I request to check on the role of this company? 5. What about a private investigator or lawyer? If neither, who or what agency would I contact for a thorough investigation to the handling of my loan in relation to a companiy's status. 6. If I did discover something fishy on my own, who would I contact to validate this fact and take legal action? I simply have a gut feeling about this one, and my gut is right most of the time. If I can make it through this time on top, I am posting a step-by-step guide on my site for others in the same bind. I believe I was in one of the first waves of this sort of thing, and with the myriad private consolidation companies popping up within the past few years, there will be more poor folks in my position.

Answer:
1. What are my rights in terms of entitlement to information about my loan?

OK. Now you're asking the tough ones. Do you mean, what are your rights, or what will you actually get? It's not a facetious question. Depending on whom you're dealing with, you may get accurate information, or you may not.

2. Is it within my right to request an entire history of my loan from day one?

You'd think a person could get a statement of how in the world the lender, or guarantor, or consolidator is applying the payments you send in. I've been trying for 17 years. I'm not kidding. No luck so far.

3. Is this something I should attempt to ask for myself?

You mean, as opposed to hiring a lawyer? If it doesn't involve giving away information about yourself or your thoughts or plans, and if you don't have to sign anything, etc., it usually seems like a pretty good idea to do as much legwork as possible before seeing a lawyer. Get your facts together, learn what you can about the law, investigate the adversary, etc. Lawyers aren't God. They don't know all that much about the facts of a given case even if they specialize in this particular area of the law, which virtually none do.

4. Which federal agency would I request to check on the role of this company?

I can't remember the details of your situation. For banking stuff, there are a couple of sources you can contact. The Comptroller of the Currency, the Federal Reserve, can't remember the others. They should have a list at a consumer banking advice site, which you can probably find through Yahoo.com. For student loans, it's always worthwhile (well, it's often worthwhile, at least) to stroll through the federal regulations and see what the Department of Education is supposed to be thinking. CFR (Code of Federal Regulations). You can find that at Yahoo too. Title 34, chapter 6, especially parts 668 et seq. (for most of us). http://www.access.gpo.gov/nara/cfr/waisidx_01/34cfrv3_01.html#600 Consumer sites might have a lot of other information you could use, as you verge away from the ordinary federally guaranteed student loan scenario into other stuff; but as you make that transition, definitely be conscious of the question of whether this really would qualify as an educational loan in bankruptcy. The law review article I mentioned before has some stuff on that.

5. What about a private investigator or lawyer? If neither, who or what agency would I contact for a thorough investigation to the handling of my loan in relation to a companiy's status.

I construe this as a question about how you can learn more. The Web and a good library will carry you miles. If you're looking into the details of a company, I recommend a business school library.

6. If I did discover something fishy on my own, who would I contact to validate this fact and take legal action?

Lawyer, consumer group, etc. Legwork first, is my advice (including the legwork to see if there are consumer groups or other advisors online who may already have uncovered what you're talking about). I simply have a gut feeling about this one, and my gut is right most of the time. If I can make it through this time on top, I am posting a step-by-step guide on my site for others in the same bind.