Tuesday, March 20th, 2007...6:34 am
Sallie Mae Screws With Brandon’s Life
A reader sent in his story:
I am currently dealing with the relentlessness of Sallie Mae, much to my frustration. When you tell them you can’t afford payments, and request forbearances, they ask you for more money. Ummm, I thought that was the point of a FORBEARANCE. Just a couple of weeks ago, they threatened me with wage garnishment, and like a fool, I made a payment to get them out of my hair (over $400), which put me in a slight crunch financially.
The way Sallie Mae treats its customers is deplorable, and I have yet to hear any kind words about the company. They call any time of day, usually early in the morning (I guess they don’t think people sleep). When I thought my loan was consolidated by another company (XPress Loan Servicing, who is MUCH more understanding and professional), Sallie Mae turns right around and tells me that the loans were NOT consolidated, and they never received any word of it. Why the whistle hasn’t been blown on their practices is beyond me. Sallie Mae does nothing but bully the customers, and leave us feeling helpless. There is no way in Hell this can be legal, or can it?
Brandon is having almost the same problem, Sallie Mae won’t release his loans, which is illegal. They are also calling him at what appears to be all hours of the day. Check out our post about Sallie Mae’s aggressive debt collection for links to your rights when a debt collector is calling you.
15 Comments
October 26th, 2007 at 9:47 am
I had the same problem with Sallie Mae. I had consolidated before the deadline date to get 4.84% while I was in graduate school last year (2006). A few months later I found out Sallie Mae denied the consolidation and kept me at 8%. They claimed they had a right to deny the consolidation with another company under a stipulation the government gave them saying they had a right to deny consolidation from other lenders for “in school status students”. But yet Sallie Mae did not communicate with me the fact they denied the consolidation and did not offer to give me the same low fixed interest rate, they kept the interest @ 8%! Even after I graduated, a year went by and they still lied to me saying they never received any loan verificatin certificates from other lenders for consolidation. Denying to release the loan to other companies after the student graduates is illegal. Sallie Mae is underneath, dishonest, and a purely evil company. Is it true that the government of the United States gives them the right to do this? I’ve lost over $2,000 in interest that I could have saved if it weren’t for Sallie Mae. Something should be done about this unjustice. If there is a list to sign for this lawsuit, sign me up.
October 26th, 2007 at 9:50 am
I had the same problem with Sallie Mae. I had consolidated before the deadline date to get 4.84% while I was in graduate school last year (2006). A few months later I found out Sallie Mae denied the consolidation and kept me at 8%. They claimed they had a right to deny the consolidation with another company under a stipulation the government gave them saying they had a right to deny consolidation from other lenders for “in school status students”. But yet Sallie Mae did not communicate with me the fact they denied the consolidation and did not offer to give me the same low fixed interest rate, they kept the interest @ 8%! Even after I graduated, a year went by and they still lied to me saying they never received any loan verificatin certificates from other lenders for consolidation, after numerous times trying to consolidate. Denying to release the loan to other companies after the student graduates is illegal. Sallie Mae is underneath, dishonest, and a purely evil company. Is it true that the government of the United States gives them the right to do this? I’ve lost over $2,000 in interest that I could have saved if it weren’t for Sallie Mae. Something should be done about this unjustice. If there is a list for students to sign this lawsuit, sign me up.
March 27th, 2008 at 7:53 am
I to am having the same problem out of SallieMae. They keep calling me saying I owe a past due amount. If fact it is they that owe me money! for I have overed paid. I wish someone one would investegate this company.
June 4th, 2008 at 3:42 pm
I absolutely hate Sallie Mae. It is by far the worst loan decision I have ever made in my life. The worst part is that I didn’t even get to use the money. I am paying back a $10,200.00 loan that I NEVER got to use a penny of.
But, to the story about Sallie Mae. My wife and I have had tremendous financial struggles for the past 2 years due to my heallth problems, and it has gotten us behind twice with Sallie Mae. They have done 2 forebearances with me (with the problems and attitude mentioned above) They are never nice about it regardless. But, we recently received a statement from them showing we now owe $11,600.00 of principal on a $10,200.00 loan? How is that possible. We have been paying them for almost 4 years and now we owe $1400.00 more than we did when I got the loan? Personally, and I plan to research this thoroughly, I think Sallie Mae is dishonest. I would never recommend anyone use them for any reason and in my case I may get legal advice and assistance with this. They are horrible and need to be stopped.
June 12th, 2008 at 4:33 pm
I have a feeling that I have been duped by sallie mae also. But I cannot tell because I’ve been qualified as diabled by the federal government. I’ve sent in my application to have my loan dismissed. I hope it goes through because I am not able to work because of dibilitating arthritis in my spine and my neck. When I asked them did I need to send in something from social security, they said no that they needed proof from my treating physician. I’ve yet to here from them. Everyone please keep me posted about everything that is going on.
September 3rd, 2008 at 9:33 am
i had no idea that sally mae was this sneaky and relentless. it makes me feel more infuriated reading about these comments.
i had a loan for $20,000 and when i was in school it was explained to me that there would be “minimum payment” options as low as $50, a “graduated income” option which increases your monthly bill as you earn more money. so after i leave school i’m ready to spend about $50 - $100 a month, which is all i could really afford. i don’t live with my parents, they didn’t help me get any of these loans, and i’m living on a tight budget! i pay my own rent and all of that. sallie mae doesn’t care. they said i wasn’t eligible for any of these payment options and set my monthly payments to over $200. i don’t have that, so i sent in a payment of $100 and they sent it back! they “do not accept partial payments”. they did tell me at that point that i qualify for “interest only” payment which is a joke! only paying interest?? not paying the actual debt?? they keep increasing the interest rate anyway, it’s at 15% and there is no cap!! on top of all this, they harrass me, at work threatening to garnish my wages even though i have requested that they stop contacting me there. they even ask to speak to my manager, like they have ANYTHING to do with it. it really makes me not want to pay them AT ALL!
sallie mae, what a rip off. this loan is preventing me from going to another school, do they really care about people getting educated or just getting paid?!
i’m on board with rebecca, if anyone is filing a lawsuit, sign me up too
September 22nd, 2008 at 11:00 am
Write the Better Business Bureau in PA. Complain and sue them. They are violating people’s lives!
January 15th, 2009 at 11:54 pm
I also obtained a school loan for culinary school. I borrowed 40,000. In 5 years, I have paid over 20,000 dollars. I just logged in to Sallie Mae to find out that I owe 42,000. I owe 2,000 dollars more than I borrowed after paying over 20,000 dollars. Am I crazy? What kind of math are they using at Sallie Mae? There has to be something we can do? Please if there is a lawyer out there that can give us some advice. Thanks.
March 11th, 2009 at 5:01 pm
I hate sallie mae. they would call me 15 times a day with the prerecorded message or demanding payments. when i did try to talk to them they treated me like dirt. i foolishly took out the loan to go to a private trade school only to find the instructors treated me like crap because i was the only girl in my class which ultimately one too many classes i guess. the school dropped me and wouldn’t return my phone calls. so now i am stuck with a 13,000 dollar debt that i simply cannot afford to repay. the late fees they charge are absolutely ridiculous. i really wish someone had been there before i made this blind decision to make my life better. i think everyone should stand and unite against sallie mae. they are an evil coorperation who cares nothing for the struggling person. they even threatened me by saying that if i didn’t pay my loans it would affect the life of my child! bastards.
March 24th, 2009 at 6:13 am
People at Sallie Mae are nasty. They do not listen they called my wife ten times yesterday. The lie they swear they are the losers do not they know that God is watching them. This could happen to them too. Oh I am sorry I forgot they have not got brains enough to go to school and I will be filing charges on them for being racists. I am a Pastor and they have lied to me knowing that I am a pastor. People learn the Bible. I pray for you all.
May 27th, 2009 at 3:33 pm
When they call me, they say the call will be recorded for what ever reason….I say ok, let me get out my recorder. And they jumped, 2ice….They said they don’t give me permission to record them. Yet i Told them, You are recording me, so i’m going to record you….
They said that they will have to end the call…I said…do that….Bye…bye….Assholes….
They have the balls to tell me what I make, where i spend my money in this and that..I said…and asked them if they are willing to feed my family, make my rent payments, pay my car loan…That i will be happy to make payments..But they are asking way to much a month 500.00….I’ll have to work day and night just to feed my family….
By the way, still searching for the JOB i went to school for “Graphic Designs’ Nothing….It’s like the Employer Knows…Ohhhhh, GIBBS Student, Fuck No..No way……graduated in 2006…still searching……Sallie Mae..I got a few words for Ya’…
The Mafia, Mobb shit works well…I invite you to my house and sit down..and talk…Screw the Phone conversaion, that’s not going anywhere…It’s like they have uneducated people working there……Come to my HOUSE….S.O.B.s……
June 29th, 2009 at 4:45 pm
Sallie Mae and the collection agencies that they own all commit illegal collection practices!
I took out a student loan back in 1990, it was for $8,000, the school closed and I also found out that NONE of the credits from this so called school carried over to any school as they were not considered “accredited” even though the school represented themselves as an accredited school!
I made a few of my student loan payments but just turning 21 with no college thanks to that school, I could only take on minimum wage jobs and I barely made ends meet. I stopped making the payments because the bank that held the loans at that time Citigroup refused to help me out.
I have been haunted by this loan it racked itself up to $28K, my tax returns have been garnished every year for the past 8 years, they have collected $18K so far. I just noticed my paychecks were 25% less than they were before and found out that one of Sallie Mae’s collection agencies has garnished my wages as well. I have already taken a 60% paycut to keep my current job and have two kids in fulltime daycare and we live paycheck to paycheck. I didn’t even get served a notification in regards to my wages. I have an attorney working on this as he himself has a suit against Sallie Mae, but they keep moving the debt around from one collection agency to another (ALL owned by them) and each collection agency claims they have no knowledge of my representation by legal council!
Each agency threatens me, they are rude, and they call all hours of the day and nite just to harrass you. I have TRIED to settle this loan but they will NOT because they will NOT write off the interest and collection fees and for me not to keep accruing interest, they want payment in full. I don’t have that kind of cash laying around to give them the full amount!
I am not some loser that sits around and doesn’t pay bills. I have paid all bills ontime and actually have a good fico score. They have collected MORE than double of my actual loan and they still want more! EVEN THE IRS will settle pennies on the dollar, HOW can this be LEGAL????????????
Now I am back in school at the age of 40 training for a career in nursing as my current employer has notified us that effective August 1, we will all be laid off. I am paying CASH for school and will never ever let my kids take out a student loan unless things change!
September 7th, 2009 at 1:52 pm
Hey, wake up! Sallie Mae is a ‘legal’ criminal organization created by our own congress.
They have no government agency overseeing them - they are ‘ruled’ directly by congress. And they have congress in their pockets. Try talking to your (or any) congress person about Sallie Mae - and you most likely will get shut out.
Why? They are very effective at lobbying congress to change little laws here and there. Each change doesn’t have a meaning in itself - but combined they are purely evil.
History will write Sallie Mae as a big evil scandal. Unfortunately many lives will be screwed before that happens.
My advise is:
(1) Keep track of everything. Dates & times of calls. Every letter ever sent or received, etc.
(2) Get a lawyer for any interaction with Sallie Mae.
(3) Make a bunch of money as paying off Sallie will be much harder than you think.
(4) Pray.
September 7th, 2009 at 2:11 pm
I thought I was a lucky person. I graduated and found a decent job making good money. I never missed payment with Sallie - or at least I though I didn’t.
They took monthly payments out of my checking account for 6 years. One day my savings were quite high and I decided to pay off my loan.
First, I could not contact a person who could tell me how much I owed. I kept getting foreigners who couldn’t understand what I wanted to do or couldn’t help me. I also sent letters but no one answered them.
Finally I got ahold of an actual American. I was shocked to find out I owed slightly more than my original loan. What?
It took another 3 months of contacting them to find out how. They finally told me that I have had monthly late fees for 6 years. They said I had missed payment 6 years ago so they charged me late fees for 6 years and that is why the loan is so high.
I asked why they never sent me any notice. They said they did. I asked to where. They sent it to my old address while in college. What I said? But they knew I moved as I received mail from them at my new address. No answer other then “we complied legally by sending you a notice.”
Obviously the person on the other end knows it is a scam. But I guess they are getting paid a bunch of money to help steal other people’s money.
I am looking for a lawyer to sue them.
I am different in that I was lucky to have a good job and paid my loan. But even I got screwed.
Sallie Mae is just another mafia. No matter what you do you have to keep paying and paying. And no one in the government will help you.
September 17th, 2009 at 10:56 am
Well I guess the current news now is that our government is now trying to get rid of the tax subsidies we pay Sallie Mae. WE’RE giving them subsidies when they do everything they can to screw students for the sake of profits? I have 2 serious complaints, one back in 2002, they made it so difficult for anyone to lock in your rate back then in hopes that you wouldn’t, serious corruption back then. Also after being on automatic pay for 6 years and never missing a payment, I missed one because of some bad accounting on my part that I corrected 6 days later when I found out. An honest mistake that I take full responsibility for and deserve the backlash however the backlash was 2 years of paying 200 basis points more, punishment did NOT fit the crime. They take advantage of students non stop!!!
Leave a Reply