Question:
I recently tried to pay off my student loan and was given a payoff quote. I specifically asked at the time whether there was a prepayment penalty. They told me there was not. I sent in the check for the quoted amount and now the loan processing company says I owe them an additional $160 as they changed their prepayment policy mid-month.

My loan is a private, non-subsidized, Consern student loan. I contacted them umpteen times, but they are not responsive. They agree it was their mistake, but seem to still expect me to foot the bill. I am trying to resolve it with them, but am losing patience. Should I complain to my local jusidication, Washington, DC or is there a federal body that regulates such matters (the FTC?)? It's not the money, but the principle for me. I would *highly* appreciate any relevant advice.

Answer:
Did you get the payoff quote *in writing*? If so (and you still have a copy) then I'd guess they don't have a leg to stand on. If not, then I'd guess you don't. :( I've gotten bad information and been outright lied to verbally [not on loan matters], and hopefully I've learned to get everything in writing in the future. Of course I'm not a lawyer, nor a financial aid professional.

Perhaps the financial aid officer at the school you graduated from could give you better advice. Thanks for the advice. The situation was getting really ugly until I dealt with the organization that actaully owns the loan (as opposed to the processing company that made the mistake). Though I hadn't gotten the quote in writing, the company who owned the loan told the processing company that they would eat it, but in the future, required them to issue all such quotations in writing. They further stated to the processing company in a letter they cc'd me, that future mistakes of this nature would be the responsibility of the processing company to cover. There is justice after all. In fact, the loan holder was quite helpful and my two week long dispute was resolved in a matter of hours once I dealt with them. The most important advice I got was about getting such quotes in writing. Thanks to all the people who posted helpful replies. I greatly appreciate your assistance.