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Unsubsidized Loans - Wells Fargo now ACS

Date: Sat, 03/19/2011 - 14:17
Submitted by on Sat, 03/19/2011 - 14:17
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I have two unsubsidized loans that I have been paying on for over 10 years and the principal is just not going down! Now I get a notice from Wells Fargo that ACS has taken over the loans. Does this mean they sold them?

The loans were for University of Phoenix which did me no good even though I got a bachelor's degree. Have been out of work 2 years and back in a REAL school on an unemploymentt scholarship but what to do about the original loans! In the state of Florida can I walk away from them since they are well over 5 years old?


These sound like federal loans. (FFELP) Wells is probably selling them to ACS as a servicer but you will still have a guarantor on the loan. As with all federal loans, you owe them until the last penny is paid...there is no walking away from them.....ever.

How much did you originally borrow? How much have you been paying on them monthly? With subsidized loans, interest started accruing on the day you borrowed them. You say you have been paying on them for 10 years but how long ago did you borrow them? If you were making minimal payments, it is possible you were not covering the interest.


Submitted by SOAPLADY on Sat, 03/19/2011 - 15:04

SOAPLADY

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Hello.
Please Help
I'm in a bit of a panic. I just discovered that my 2.47 interest rate with WF went to 3.72 upon transfer to ACS. WF says they should not have changed the rate, but what is my recourse? I can't even get a straight answer from the ACS reps --from Jamaica--, and when I'm "transferred" to a supervisor I'm just put on indefinite Hold!
Isn't it illegal to, one, "combine" (isn't that consolidate?) my 11 loans to 2, and to raise the interest rate on one? They divided the loans-- one a fraction of the total and the other the bulk. They, of course, raised the rate on the majority of the total loan.
What can I do?


Submitted by on Tue, 04/12/2011 - 17:25

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Probably Jamaica NY.

Most private loans have fluctuating rates...a certain per centage over libor.

They would not have consolidated them per se...to consolidate in student loan terms is to take out a whole new loan to pay off all group of loans...it requires a prom note. They just lump them together.


Submitted by SOAPLADY on Tue, 04/12/2011 - 17:36

SOAPLADY

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