Interim Note for USA Funds student loan
~ The undated document is “just the way it is”.
Click and double click on the image to make it larger.
Below you will find my two page (back to back) “Interim Note” for my USA (United Student Aid Funds) “student loan”. The Interim Note is issued by a local banker. Interest starts on the first day of the month in which an applicant applies for the student loan, NOT on the date that the student actually receives the money. It is the banking system and “just the way it is”.
On February 14 (1972) I first applied for the student loan that resulted in the Interim Note that was presented for me to sign on March 18 (1972), the date of the actual disbursement of the $750 (less the $8.72 in fees). Note that the “Note” is dated February 1 (1972), a date entered by the bank.
“Default” includes bankruptcy or death. “Default” also includes a student withdrawing from being enrolled at the designated “educational” institution. In the event of default the student (and any future husband or wife) MUST pay “costs and expenses” of collecting the amount owed, which includes PRINCIPAL, INTEREST, PENALTIES, FEES, and EARLIER ASSESSED COLLECTION FEES.
The “Collection Fee” (Cost) on a student loan is 1/3 (33.33%) of the amount collected. The collection fee is paid FIRST, before amounts are credited to Interest or Principal. None of these facts are disclosed to the student loan applicant.
This means that a defaulted loan is almost impossible to ever pay off. The more that is “paid” (collected), the greater the fees and the less that is reduced on Principal.
The following link PROVES that the Collection Corporation charges 33.33%. Here!
The Interim Note is replaced with a Payout Note IF the Interim Note is not in default. “Default” includes bankruptcy or death. “Default” also includes a student withdrawing from being enrolled at the designated “educational” institution.
Under “OFFSET” the bank (or the “holder” of the note) has a right to TAKE any property, including personal property, that the “maker” of the note (meaning the student, or a husband or wife if they later marry) may ever have, and to do so at any time and “without notice”.
The above images are a copy of a LEGAL NOTE that is a binding instrument that is negotiable, tradeable, sellable. It is like a “bearer bond”, and constitutes a lien against all property. The value of this note (today) would be considerably in excess of $5,000 based on principal, interest on interest for 40 years, and the 1/3 added fee for collections. I have the original, and think it is best to DESTROY it. The original is a document too dangerous to have on hand as long as I am alive.
What IS obvious is that even though the debt document was PAID IN FULL, no note of that fact was ever made on the original document. BEWARE! DANGER! If you have a student loan, or have EVER had one, DEMAND that the original document be returned to you AT ONCE, as soon as it is paid. Also demand that the original document is clearly marked “Paid in full, no debt owing”.
That is NOT enough. You must then have a notary attest to the documents existence and you must FILE the notarized document and the attestment in your local County Courthouse and then tell everyone that you did. The next ex post facto “act of Congress” will probably be to make student loans a continuing liability after you die, a claim against every estate. Be Prepared!
2012.05.13 – 07:42.