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.

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