There are about $40K worth of Federal loans with Great Lakes and then around another $10K with what looks like just an amount with the Art Institute itself.
We've been paying on both loans (Federal & AI) and recently we stopped getting statements from AI. When my wife called, they said that the debt payback is now being managed by Williams & Fudge, Inc.
I ended up calling Williams & Fudge to get a better understanding on what's going on and he sent me an e-mail saying:
So here is my question. This $9k doesn't seem like a true "loan" and my question is are we required to pay this back now that it is no longer with do we owe this money? My eyes see that the loan was "transferred" to Williams and Fudge, Inc which by my research is a collection agency and in their signature it states: "This communication is from a debt collector and is an attempt to collect a debt. Any information obtained will be used for that purpose." and makes reference to the Rosenthal Fair Debt Collection Practices Act and the federal Fair Debt Collection Practices Act. Additionally, they state that there are no terms, only pay arrangement or payment in full.The office that handled student accounts for the Art Institute of California-Silicon Valley known as EDMC was closed. They transferred all of their accounts to Williams and Fudge, Inc. Your student account is not defaulted and there are no default fees. As to date there has been no interest on your balance. Your payment of $XXX will be an acceptable amount for your balance. The are no terms only pay arrangement or payment in full of the balance of $XXXXXX
In addition to the Williams and Fudge, Inc "debt" I'm continuing to do more research on EDMC, which is the parent company of AI, and it looks as though you can get your Federal loans forgiven, which to me would be the Great Lake loans but will have to do some more research on it.
Long post, but in summary:
1. Do we need to pay the AI loan now that it has transferred to a debt collection agency (William and Fudge Inc)
2. Is there a possibility that we are able to get forgiveness on the Great Lake loans?
3. If you have gone through this or know someone has gone through this, I'd be interested to hear what was done