I have been making my student loan payments to Direct Loans for several years with no problems. This month, however, an extra $300.00 charge was tacked on to my bill. I understand that mistakes happen, but what drove me crazy is that it took forever to get the mistake cleared up. I emailed Direct Loans several times and, despite the fact the the mistake was easily documented, the responder kept insisting that I owed the money. When I called, I got the same treatment.

Good news/bad news:

The good news is that a supervisor finally acknowledged the error and removed the charge.
The bad news is the story didn't end there.

When I tried to make a payment for the correct amount, the website seemed to refuse it because it thought I owed more. So, after the supervisor cleared up the mistake, I again went through the motions of making a payment, and this one was acknowledged. So, I thought I was fine. Unfortunately, both payments went through.

When I called Direct Loans, the operator was unmoved by my story, again insisting that any error must be my fault alone. I admit I was the one who made two payments, so maybe this one is my fault at least in part. However, considering the circumstances of the error, one would think that they could work with me. Instead, she told me my only option was to go through a four to six week process of applying for a refund. Of course, the problem is that I have no money left to live on for the next two weeks, so a refund in the distant future won't help me.

I guess I need to borrow more money :)

Anyway, this problem is temporary and ambiguous, so I'm dropping it. However, I'm switching back to paper billing, and after reading the horror stories on this site, I'm keeping my paper records forever.

It's interesting that this site has only a few complaints against Direct Loans, but half of those complaints are quite recent. I wonder if they've changed their style over the past several months.

Be cautious when dealing with lenders such as Direct Loans! So far, this is the second error they have made to my student loan account (NSLDS). I had a loan taken out a loan from Direct Loans on 09/28/2004 and paid off the loan through my bank in 2005-2006ish. Unfortunately, I do not have access to my permanent records to bring up the details of the exact date, since I am located out of the country due to the military. This is the second occurrence that Direct Loans claims to have not received the full amount, even when the bank clearly has records of the cashed check. The first time I had to go through my bank to get the loan and check number and provide it to Direct Loans...years later, they are claiming, yet again, that the loan was not paid out! Now, I have to deal with my bank...again to settle this reoccurring problem with their system! What is wrong with this lender and why would they all of a sudden attempt to claim more money roughly around the same time I went back to school in another location?

I paid off my loans years ago. Since then I cleaned out my files. Several days ago my sister recieved an overdue payment letter at my old address. Direct Loans claim I had an outstanding balance of 1350, interest of nearly 300 and collection payments of more than 400. They claim they have corresponded with my sisters address. First they claimed ten times, later they said three times, however, they only sent a letter in June this year followed by a further two. If I owed so much money, why didn't they contact me sooner, expecially as my last payment was in 2006. When I phone direct loans they only process my call to a voicemail which says I must deal with the collection agency. The agency says that only direct loans can give me a history of the repayments. I have been asked to tender prorf which I foolishly threw out. As I have lived overseas for years I made my repayments via interenational money orders. I really don't what to do. Can alnyone help me and can I say to anyone thinking about a lend from direct loan. DON"T DO IT!!!