United Student Aid Funds, Inc. – Richard P. Reinhardt letter

January 15th, 1974

United Student Aid Funds, Inc. – Richard P. Reinhardt letter

~ This letter was written on January 15, 1974 by Richard P. Reinhardt, Assistant Manager, United Student Aid Funds, Inc. (USA Loan).

In this letter Mr. Richard P. Reinhardt documents that the $995.75 certified check made out to the University of Nevada Board of Regents, re-endorsed to the United Student Aid Funds, Inc. has now been re-re-endorsed to the National Account Systems, Inc. to “pay in full” Donald Clayton’s $750 student loan.

He unprofessionally comments that it pays to “stick to the gun”.

The “effort” that Richard references in the last paragraph is wrong.  The reason that this student loan was repaid when it was, was that the student borrower (Donald Clayton) was interested in returning to school and the University of Nevada Regents, not Bill Rasmussen, required that ALL student transcripts and records be withheld if any student loan was in default.

Without repaying the loan “in full” Donald Clayton could neither transfer to any other school, nor could he obtain (or retain) any job that required proof of higher education.

This entire letter is a fraud and a lie, except the part about the NAS (Inc.) getting all the money!

Richard P. Reinhardt is VERY confused.  First he quotes a pay off of $999.75 (falsely), then he adds $75 for 60 days interest (actually $12 of interest) (10/23/1973 – 12/23/1974 ~ the approximate date the cashiers check was written).  The 1/3″collection fee” on $12 is $4; $4 +$12 is $16, NOT $75.

The above is an example of the “guys” with “an education” and that get the High paying jobs

Richard still does not apply the reality that NAS charges 33 1/3% for ALL collections.  He lies about the $75 figure.  He also LIES about any amount being “written off”.  His BIGGEST LIE is his claim that there remains a SMALL and UNCOLLECTIBLE balance on this student loan.  As we shall soon see, the U.S. Department of Education would “come after” Donald Clayton AND his later wife for amounts well over an ADDITIONAL $1,000 (one thousand dollars).

2012.05.14 – 05.08.

UNR Financial Aid Office – W. E. Rasmussen letter

January 9th, 1974

UNR Financial Aid Office – W. E. Rasmussen letter

~ This letter was written on January 9, 1974 by William E. Rasmussen (Bill Rasmussen), Director of the University of Nevada – Reno Financial Aid Office.

In this letter Mr. Bill Rasmussen sends a certified check payable to the Board of Regents of the University of Nevada and re-endorsed to the National Account Systems, Inc. in the amount of $995.75 as payment in full for a defaulted student loan of $750, plus interest, plus collection fees and all other costs.   Paragraph 1.

In this letter Mr. Bill Rasmussen confirms that United Student Aid Funds, Inc. quoted an amount of $999.75 (due) to “clear” the total amount owing (“paid in full”) on the defaulted USA Loan of Donald Clayton.  Paragraph 4.

This letter also confirms that the Register of the University of Nevada – Reno transcribed the amount incorrectly and wrongly informed Donald Clayton (by letter) that the total amount due on the defaulted student loan was $995.75.   Paragraph 4.

Bill Rasmussen also specifically requests that: the National Account Systems, Inc.; United Student Aid Funds, Inc.; and the First National Bank of Nevada be provided with the “necessary papers” to “clear” the defaulted student loan.  Paragraph 3.

In addition Bill Rasmussen specifically sent a copy of this letter to Mr. John Gonzales (apparently with United Student Aid Funds, Inc.) and to Mrs. Joann Roberts, Loan Officer involved at First National Bank of Nevada (FNB).  (See: cc:)

Bill Rasmussen failed to forward a copy of the Register’s letter for the USA Funds, Inc. file.

On January 18, 1974 Richard P. Reinhardt, Supervisor Default Section, UNITED STUDENT AID FUNDS, INC. in Indianapolis, Indiana sent the re-endorsed check and a copy of the Bill Rasmussen letter to the National Account Systems, Inc., the Loan Collection “master company” in charge of collecting student loans.

The controlling document for the figure quoted by Richard P. Reinhardt is a communication #5391233 dated October 23, 1973 and sent to United Student Aid Funds, Inc.:


Summary:  The ENTIRE student aid industry is rife with incompetence, appalling ignorance, duplicity as well as considerable greed and arrogance.  No one in Congress will admit that the “system” is OUT OF CONTROL and doesn’t work.  It does work however, for the collection agencies who the system was designed to work for.

As you can plainly see from the papers that I have posted the U.S. Department of Education is just the “front” for obtaining federal corporate welfare money.  The real “players” are the banks, the edu-institutions and the collection corporations.

Even USA Funds, Inc. is mostly just a shell to shift the “student loan” profits to the collection corporations.  USA Loans (inc.) maintains account records that have nothing to do with reality or with the written representations of their officers.  Mine is just one case in millions.  My examples offering proof of lies, incompetence and outright deception can be multiplied by the millions if everyone obtained their complete student aid file as I have done.

Specifics:  Referring back to the above letter:

1.  Bill Rasmussen, as head of the UNR Financial Aid Office KNEW that the figure quoted to pay off the $750 student loan was bogus and a lie.  He received a copy of the telegram sent on August 29, 1973 from USA Funds, Inc.  stating that collection fees would be 33 1/3%.  $750 + 250 = $1,000.00 without even adding the 7% interest for the 20 months from February 1, 1972 through October 23, 1973.  He also knew of the $25 FNB default charge.   He not only lied, he instructed the Register at his own University (UNR) to write a letter lying to the student who trusted the University to provide accurate and knowledgeable information.

2.   Richard P. Reinhardt, Supervisor Default Section, UNITED STUDENT AID FUNDS, INC. LIED when he quoted the “pay out” amount of $999.75 to Bill Rasmussen.  He KNEW that student loans have interest and that there would be added interest from the October 23rd date.  Further, he worked for the same UNITED STUDENT AID FUNDS, INC. (organization) that issued the telegram that stated that the “collection fee rate” was 33.333%.  Unless he was a complete and incompetent idiot a simple exercise in second grade math would demonstrate (to him) that the people at NAS, Inc. had LIED (about the payoff amount).

3.  NAS, Inc. (National Account Systems, Inc.) LIED.  The “Amount Due” stated in their numbered communication could never have been right, as PRINCIPAL, plus INTEREST, plus the 33 1/3% COLLECTION FEE was well over $1,000 on the first day that they were given the loan for collections.

4.  Mrs. Joanne Roberts committed fraud against the student (Donald Clayton), probably twice.  The only alternative theory is that First National Bank of Nevada committed fraud and Joanne Roberts did her job.  The fact is that Joanne Roberts, Loan Officer for FNB, was informed in writing that the loan was Paid in Full by Bill Rasmussen.  The information was never put in the FNB records.

A second issue regarding Joanne Roberts is documented here.  The December 7, 1972 letter to Mrs. Joanne Roberts, Loan Officer at FNB, from Donald Clayton was DESTROYED by FNB less than one year after it was received by FNB.  Collusion is evident, as the USA Funds, Inc. copy of the same letter also “went missing”.

5.  The U.S. Department of Education committed fraud by NOT returning the original note “marked PAID IN FULL”, or by not requiring that the note be returned to the maker (meaning the student) after the debt was allegedly fully discharged.  Further, the U.S. Department of Education was remiss in not knowing where the Interim Note was located and of not requiring that USA Funds, Inc. kept track of the “holder” of the note.

Next, I will present the facts and the documents regarding the damage and damages that the above lies, frauds, and false statements have caused the person that repaid their student loan based on the false statements from everyone involved in the Student Loan industry student’s loan.

Also See: January 15, 1974 letter from Richard P. Reinhardt.

IF you have a student loan, TRUST NO ONE!

2012.05.14 – 04.16.