Frequently Asked Questions About Student Loans
Q:	What do I do if my records indicate a different student loan balance than your records?
A:	If you believe you repaid a portion of your loan and it is not reflected in your current balance, or if you believe you repaid your loan in full, send copies of the canceled check(s) or money orders, etc., as well as any other pertinent information to GRC.
Q:	Why was my account assigned to a collection agency?
A:	Your loan(s) were purchased by an agency due to the default status. Your lender assigned your loan(s) to a collection agency to work with you to resolve the default.
Q:	I don't think my loan is in default, but I am being contacted by GRC. What should I do?
A:	If you believe your loan is not in default, and therefore, should not have been assigned to GRC, send the appropriate documentation to GRC. If you have Federal Family Education Loan Program (FFELP) loan(s), you also need to contact the guaranty agency or its agent and demonstrate to them that your loan should not be in default.
Q:	What do I do if I am incarcerated and cannot repay my loan?
A:	If you are incarcerated, you should request an "Incarceration Verification" form. The form must be completed and returned to GRC.
Q:	I was too young to sign a promissory note; am I still legally obligated to repay my loan?
A:	Yes. Section 484A(b)(2) of the Higher Education Act of 1965, as amended (20 U.S.C. 1091a(b)(2)) stipulates that your age at the time you signed the promissory note is not a valid defense for refusing to repay the loan. You are responsible for this loan.
Q:	I am being contacted regarding a loan for which I never applied. What do I do?
A:	If you believe your name and/or Social Security Number (SSN) are associated with a student loan you did not receive, you should do one of the following: If your name and SSN are incorrectly associated with a student loan account, you should request a copy of the promissory note If only your SSN is incorrectly associated with a student loan account, mail or fax copies of the following documents to GRC: Social Security card Birth certificate Driver's license, state identification card, U.S. passport, military identification or INS 551 If it is determined that your SSN was erroneously assigned to a student loan account, your SSN will be deleted from our database. If your name or address is associated with a student loan account, but the SSN is different, it may be that the wrong person has been contacted because of name similarities. You should contact the holder of your loan.
Q:	Why wasn't I contacted and informed that I should be repaying my loans?
A:	Repaying your loan(s) is your responsibility, and you must make payments even if you do not receive a bill, repayment notice or coupon book. However, your lender is required to notify you of the delinquency. You may not have provided the lender with your correct mailing address. Contact GRC to ensure we have your current address.
Q:	I do not feel that my school provided me with a quality education; do I still have to repay my student loan?
A:	Your loan contract with the bank or financial institution that made your loan is separate and distinct from your enrollment agreement with your school. It is your responsibility to repay your loan. Failure by the school to deliver services under the enrollment contract may give you a claim against the school, but generally that claim against the school does not excuse you from honoring your separate loan contract with the lender. Before you enroll, it is your responsibility to verify whether a school offers training that meets your academic and vocational needs. If you have a claim against a school, you should raise that claim directly to the school or through state consumer protection licensing authorities.
Q:	It has been a long time since I have heard anything about my student loan. Do I still have to repay it?
A:	Yes. Section 484A(a) of the Higher Education Act stipulates that regardless of the age of the debt, there is no statute of limitation on the collection of your student loan.
Q:	My loans are in default and my school says it will not send me my transcript until that status is corrected. Why can my school withhold my transcript?
A:	The academic transcript is the property of the school, and it is up to the school to decide whether to release to you the transcript.
Q:	I don't earn very much money. How am I supposed to repay my student loan?
A:	If you cannot afford to make payments toward your loan, you should complete and return a "Statement of Financial Status" form along with evidence of your current financial situation (i.e., paycheck stub, etc.) to GRC. Based on the information provided, GRC will work with you to establish a payment plan.
Q:	I was told that if I did not repay my student loan, my employer may be contacted and asked to withhold a portion of my earnings. How is this possible?
A:	The U.S. Department of Education has been given the authority for "Administrative Wage Garnishment" under Section 488A of the Higher Education Act of 1965, as amended. This law authorizes the Secretary of Education to seek recovery of outstanding student loan debts through the offset of up to 10% of the disposable pay of employed individuals who have defaulted on their student loan obligations.