To our Silver State clients:
Yesterday, March 31, 2008 we received almost 150 calls about a billing memo from AES. Each student wanted reassurance and an explanation. It took up most of the day for 3 of our 4 lawyers. It also taught me a valuable lesson. When we are besieged by dozens of SSH clients all asking the same question, we will immediately post an answer to the question on our bankruptcy blog, www.bankruptcypower.blogspot.com. We are putting our explanation of the AES letter on our blog, http://www.bankruptcypower.blogspot.com/. We will follow the same procedure for common questions in the future. We want students with questions to look to our blog first, then email their questions to us. When the same question comes in many times, we will compose an answer and cover that question quickly and then concentrate on the unique problems.
Most of the happenings are things we have previously explained or warned about but this is a good time to go over the issues.
AES is the present servicing company for several of the banks that made loans for Silver State Students. Many of you signed original documents with US Bank, KeyBank, or Student Loan Express and now are getting letters from AES. AES now owns the notes; AES is the company expecting payment.
Many of the Students have paperwork stating that their repayments were not to start until June or ‘09 or later. Unfortunately, the small print says – ‘or when you are no longer a student’. Well, Silver State closed; you are no longer a student (and yes, I know it was through no fault of your own) – so AES accelerated all the loans and wants payment in June 08.
Most of the loans are scheduled out in 3 groups – from when they supposedly paid the money to Silver State – so the letter says $200 something on loan disbursement #1 and $200 something on loan disbursement #2 and so on… - for a total of over $600 per month - starting June 2008.
This loan is what we are trying to get eradicated in the bankruptcy court. (I chose that word carefully – there are tax ramifications of getting a loan forgiven; we want it nullified as to you and your cosigner.
To Pay Or Not To Pay?
The students are asking: should we pay it? We think that the loans are fraudulent and that we will prove it up in Court. We don’t want you to pay anything. However, if you don’t pay, AES may place negative entries on your credit reports. We are contacting the 3 major credit bureaus to give them a heads up and maybe forestall some of that problem, but we anticipate that your lender will place negative entries on your credit reports if you do not pay your lenders what they want when they want it. You could get sued. You could get a nasty phone call. (Oh, please let that happen, because you will all tell them to contact your lawyers: us).
So, what do you do? Wait a bit. Give us time to do the ’lawyer stuff’. We are working on our Adversary Proceeding Complaint and will be filing it in May, 2008.
The Proofs of Claim must be in by July 7, 2008. We will do them for you and will be contacting you all through May to see that they are done.
One piece of good news: those students who were ‘inadvertently’ filed in the wrong case when they sent in their Proofs to the Debtor’s attorney, are in the right case now. The Trustee listened to us when we complained about her and merged the cases.
AES / Xpress Loans Request for Hardship Forbearance
Don’t sign the Xpress Loans Request for Hardship Forbearance form being sent by AES to SSH students. This form contains language such as “I intend to repay my loan(s)” that is not true and that can be used against you later in Court. The AES form is not appropriate for SSH students who are planning on suing AES and their lender.
To accommodate clients referred to us by attorney Peter Lown of Jonesboro, Georgia and attorney Steve Sayler of San Diego, to accommodate clients who had difficulty raising our $800.00 fee, and to further increase the size and strength of our group, we are today announcing a final extension of time for SSH students to hire us to represent their interests in the SSH matter to postmarked by April 18, 2008. Due to the need to commence legal action against the SSH lenders, there will be no further extensions of this deadline.
The Winner Is
I am proud to announce that as of today, we have signed up more than 700 SSH students. This is far more than every other law firm combined. The combination of our experience, intelligence, compassion, hard work and reasonable fee has made us the choice of SSH students from every location across the Country. Again and again, students who have done their research and consulted their attorney friends have chosen us. We thank you for your trust. We will continue to use our best efforts on your behalf. We are passionate about helping you.
Georgeann and Gail, my two Senior Associates, are hitting the road again to meet with SSH students, to tell them about our work on their behalf, and to answer all of their questions in person.
Georgeann will be in St. Louis, Missouri on Saturday, April 5 @ 3 pm. For more information about this meeting, send an e-mail directly to Georgeann.Nicol@bankruptcypower.com.
Gail will be in Melbourne Florida on Sunday, April 6. For more information about this meeting, send an e-mail directly to Gail.Higgins@bankruptcypower.com.