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  1. Julia Heath

    As of 3/20/2017 I have paid 10,403.84 on 6 Parent Plus loans. The original balance of these
    loans totaled 44,666. As of 3/20/2017 the current balance of these same loans now total
    54,503.91. I am sinking because only 1,098.42 of the principal has been satisfied. Why are
    these loan shark practices considered legal? The loans went into forbearance mode,
    marketed as a tool to “help” when it was the worst thing for the loan. I just lost my job and
    discussed with a FED Loan servicing employee (5/3) an idea to convert the loans to a plan
    that would allow for me to pay less each month based on my income, which is ZERO right
    now. I have lost trust that any of these changes will truly help me. I just want to pay back the
    money we borrowed at a reasonable interest rate. I currently owe this bank +9,837.91 more
    then the original loan and have already paid (as of 3/20/2016) 9,304.84 in interest. The bank
    has now profited 19,142.75 (9.837.91 + 9,304.84) on 44,666.00. I am asking to pay a fair
    interest rate and ask that these practices are looked into for the sake of all of those other
    parents/students who are sinking in loans and under water like I am. I am also asking that
    the website remove any verbiage on their site intimating “help”. Forbearance is a serious
    decision and should be avoided at all cost (Add a scenario and example illustrating WHY it
    should be avoided and what your account will become once forbearance ends). This should
    be the tone of the verbiage on the website. I was actually told by a Fedloan employee (on
    4/21) that Parent Plus loans are the worst kind. A little late to tell me that. Same is true with
    the other options of “help” like “Can’t pay”? These messages signal a FALSE sense of hope
    for vulnerable students who are still trying to land their first job after graduation. Instead,
    this verbiage benefits the lender and is the equivilent of an “add-on” sale for them, because
    the lender makes a TON of money at the expense of people who are vulnerable. Add to any
    marketing materials, information packets that “Parent Plus Loans” are the worst kind and be
    specific in stating why. Add an example (scenario) in the marketing packets illustrating why.
    Legal loansharking should be illegal. To compare these kinds of loans to home loans is also a misrepresentation since homes appreciate in value on their own. My son’s job and career aspirations have not. He just holds a
    degree and did the work to earn it.

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