Owasso woman stuck in student loan nightmare with Bacone since 2010

Nicole Gallaway and her father Billy have been caught in the middle of a school loan mystery for nine years; Bacone College in Muskogee

College loans can be a huge source of stress for people, but imagine getting a loan that you never used but have to pay back anyway.

That's the situation Nicole Gallaway and her father, Billy, have found themselves in.

The story begins in the fall of 2010.

"It's been a headache for quite some time," said Billy Gallaway.

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It's back then when he helped his daughter get a loan for roughly $3,000 to secure her spot at Bacone College until her scholarship money came through, but the scholarship fell through, so they went and had a sit-down with school officials.

"He said if you have her out by Friday, we’ll just act like she was never here," said Gallaway, with the understanding that the loan check would never be used. But then, a few years later, a surprise came.

"We went to buy a house in 2017, and they said, 'You can’t buy a house, because you’re in default,'" said Nicole.

That loan that wasn't supposed to be cashed, and someone thinks it was. According to Billy, the bank says "it went down there, but it never got there," he said.

And when he's called Bacone about it, he says he's been told they're not sure what happened.

"They could not find where they gave that money was cashed by Bacone. Bacone ever received it, and Bacone never showed it coming in. So, they didn’t have to send it back out," he said.

When Tulsa's Channel 8 asked Bacone about it, they told us, "In regards to Ms. Galloway, we will be looking further into the status of her student account. This is the first we have heard of Ms. Galloway's account status and apologize if her efforts to resolve her account were not responded to."

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Meanwhile, that original $3,000 loan has now ballooned and been sold from one debt collector to another.

"It's I think, I think a fourth person has bought it now, and it's up to $27,000," said Billy.

Both father and daughter have had their plans to buy homes put on hold as the mystery of the missing loan enters its ninth year with no resolution in sight.

"I just let the lord take care of it now," said Billy.

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