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Show 1 tit biCiiM uai News Selling student loans can buy payment problems By Necia Palmer Editor-in-chief of The Sgnpost WSU student Cindy Wilson can attest to the problems students with student loans can encounter when they are not involved with thebuying and selling of their loans from banks and loan agencies. Students ignoring notices of changes on their student loans can encounter problems costing them added interest and marring their credit ratings. Student loan recipients receive notices from agencies that grant them loans when the expected graduation date they listed on their application comes up. "Generally, students ignore the papers if they are still in school and throw it away' said Richard Effiong, WSU's director of finan cial aid. Problems usually arise because loan agencies are not informed of changes in student graduation dates. Banks issuing loans are allowed to sell their loans to secondary markets either inside or out- We have Wedding Sets so special they've been copyrighted. Come in and see what a difference fine design makes. Imaginative styles ... for those who want more than you can see at any store in the mall. And since we're not in the mall, our prices are better than theirs. The finest in quality an d service since 1949. Buy with confidence from people you can trust. LIBERAL FINANCING. COMPARISON SHOPPERS BUY AT John's jewelry Certified Gemologist Appraisers 3920 Washington Boulevard - South Ogden - 627-0440 Mon. - Thurs. 1(K, Fri. 10-8, Sat 10-5 Umklubuum i 1 1 3 off all luggage I (Expires 6-30-91) 1 50 off Watches from Citizen, Pulsar and Seiko in the Fine Jewelry Department (Expire 6-30-91) L ! , $3.00 off CD or Cassette Tapes ($8.00 reg. price & higher) I (Expires 6-30-91) ' Vnu'lIfinilitntlFraiitiy'i side of the state in order to generate funds for additional loans. In Wilson's case, Zion's Bank sold her loan to a division of Sallie Mae, a federal secondary market agency in Kansas. The Loan Servicing Agency in Utah is responsible for updating loan holders of any change in student status so payment schedules can be rescheduled as needed. However, they only service agencies in Utah. The Loan Servicing Agency Kansas therefore did not receive information that Wilson was still in school and began billing her for her student loan. Wilson said she tried to correspond by letter and telephone with the agency for several months about her student status but did not receive any response other than default notices. After 120 days of repayment notices, if the loan agency receives no notice from the student, they issue default notices to the student and "everything is complicated," Effiong said. The loan agency can inform credit agencies of the default and destroy credit ratings. Wilson said she was denied credit with over eight business because the loan agency reported the default to the credit bureau. Utah Higher Education repurchased Wilson's loan in March 1990 per her request. UHE backs guaranteed student loans in Utah. They, nowever, wanted wusontopaythe interest that had accrued from the time the Loan Servicing Agency Kansas began billing her in June 1989. (See LOANS page 11) It took Galileo 16 years to master the universe. You have one night. It seems unfair. The genius had all that time. While you have a few short hours to learn your sun spots from your satellites before the dreaded astronomy exam. On the other hand, Vivarin gives you the definite advantage. It helps keep you awake and mentally alert for hours. Safely and conveniently. So even when the subject matter's dull, your mind will stay razor sharp. If Galileo had used Vivarin, maybe he could have mastered the solar Revive with VIVARIN: VI VA fly for fast pick up -safe as coffee ' I'r'Kr-d.itl.Mnw (U-ntum |