[BC loan]NSLSC Sudden payments withdrew from bank

Hello.
 
It's a Saturday (meaning I couldn't call the student loan service to inquire directly) so I was googling around to find advice, and I stumble upon this website.. Hopefully I can get some help here :(
 
I'm about to finish my first BA degree, and have been taking out student loans for the last 5 years.
I owe the government about 35,000 right now or more.
 
I am in my last few semesters before graduation, and I decided to work a few more part-time jobs instead of taking out more loan money. So from Feb 2012 onwards I did not take out more loans.
 
For certain reasons, the NSLSC misunderstood that I was out of school for more than 6 months (Feb 2012 - Aug 2012) and started to request for payments. I found out too late and was not able to correct that status (Interest free status/full time student status must be reported to the gov before end of the term, but I only found out by September..).

But the service rep told me that as long as I immediately acquire a form from my school to confirm my interest free status it would be fine, and I would not be required to make any payments until I graduate. What she did not tell me was since in 6 months there has been interest accumulated, I must first clear off that interest fee first.

The end of September came and I found out 300dollars was withdrew from my bank. I had put that cash aside for paying other bills so it caught me completely off guard. When I called and inquired, they told me that since the interest fee was not processed, I was not allow for interest free status thus the first payment was collected. The rep insisted that it was not their fault. But she did promise me that now that I have paid off the interest along with the first payment, I now have obtained interest free status and will be free from payments till I graduate.
 
Fast forward to now. I checked my bank this earlier - and found out they took out another 360 dollars. My bank is now overdraft - service fee etc added as well.
 
My immediate reaction is I should contact them asap and see if we can fix things. But I'm also absolutely horrified that they will simply blame something on me and refuse to release that money back. There's also a chance that I'm misunderstanding something which leads it to this spot. I try to research more for my payment stuffs but I've been overwhelmed with school work and work lately I simply do not have the time to do thorough researches.
 
Is there anything I can do right now to have a higher chance to make them refund my money?
Or does anyone notice that I'm missing something?
 
Please help, I make around 400 per month and been trying to pay my tuition off bit by bit per month while being put on financial hold.. I really don't have more cash to cover this overdraft.. Thanks.

Thanks for the response.
Even if I move my money to an another account, wouldn't they just overdraft the current account?
I know I'm suppose to be allow to close that account, but I'm worry that it will affect my credit score if I do so...

Just to clarify, you need to change BANKS not accounts to protect your money.... and if you have overdraft on that account, then perhaps you should cancel that overdraft.  Otherwise you are correct, they could put you further in overdraft if they take out more payments.  But putting your money at another bank should protect your money from withdrawal.

30 minutes and counting into the phone call with them. Still on hold.
The rep so far has been quite friendly and said that she's suprised that this is happening (sigh)
She's been trying to reach for her supervisor for the last 20minutes but seems like the supervisor is super busy and unable to pick up my call at the moment.

What I am told is that it takes 4 business days to update my status, and another 15 business days to refund my money.... I told the rep that in 15 business days which is 3 solid weeks. By the another round of overdraft interest is going to launch onto me and I'm not sure what to do with that.

We (Rep/me) decided our best option right now is get to the supervisor...

(Wait is over)
Supervisor said he'll send a note to his colleague to see if he can get the loan flipped back to full time student status by tomorrow. He put me on hold for a bit more and said that it WILL be done by tomorrow. He also told me to fax my bank statement to the centre and another copy to him personally, and once he recieves it he will send out a cheque for refund. He also said that it should not take more than 10 business days to receive it.

I recorded the supervisor and the rep's name this time on a word document.
Feels too good to be true but I'll do as they say and try to see if they can really get the cash back to me asap..

Thanks for everyone's support for the last few days.

Hmmm, Can you push for a reversal of the withdrawal?  They need to change their procedures so they direct deposit the money into  your account rather than refund by cheque.  Your bank will probably put a hold on the cheque for 5 business days....so direct deposit is much better. 

I just logged onto the NSLSC website to check my loan status, and as promised by the supervisor yesterday the loan has been flipped back to "In Study". I will call tomorrow to double check with them whether they received the documents I faxed them for the refund yesterday.. Will update once I find out.

Hey donutss,

Hi there, Im having a similar problem with you guys. Except I was charged on october1st and october 31st. I did not apply osap for the may-august term, but I was in school. Now I am on a 4 month coop. If I contact them will they refund me. Also hows the situation for you guys. Can you please keep us updated. Thanks.