Steven Feher says he tried repeatedly to get Discover Student Loans to acknowledge he paid the more than $3,800 in full, then decided to turn to the 2NEWS Problem Solvers to set the record straight.
"As much as i try to pay off Discover, they can't sort this out," he said.
Feher co-signed a student loan for his nephew. The nephew eventually left school and was unable to pay off the debt, so Steven was on the hook for it.
He showed us the canceled check showing that he immediately paid the debt in full.
"I sent a check. That's pretty much where the whole debacle started," he said.
He says he sent the check to an address Discover Student Loans provided.
But soon after Steven began receiving calls and letters saying he still owed the money. That went on for for several months then another wrinkle.
Feher explains, "I got a check from Great Labs Educational Loan Services for the amount I had paid Discover, saying they had no record of a student loan in my name."
He immediately called Discover and did an electronic transfer of money from his checking account to the company in his second attempt to pay off the loan.
He says he asked for verification they received the money, but he never got it.
Instead a couple of weeks later he says his phone started ringing again. Discover calling saying he had not paid his debt.
So he called the 2NEWS Problem Solvers for help saying, "It seems like this is a case where an individual can make no difference. So I'm hoping the Problem Solvers can work their magic on the situation and hopefully resolve it."
We contacted Discover Student Loans and a spokesperson promised to look into the situation.
Soon we received an email saying the situation was resolved. Multiple follow-up emails and phone calls trying to find out what went wrong in Feher's case went unanswered by the company.
Feher was able to confirm he did receive the letter he'd been waiting for confirming his $0 balance. He says it's a big relief.
"So grateful to the Problem Solvers for solving this. I was at my wits end. Now I'm happy again. I'm thrilled."
Experts say when considering whether to co-sign on a loan be certain you are able to afford to pay off the full amount yourself. Because if the friend or family member you co-sign with fails to pay you will be on the hook for the full amount and interest.
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