April 27, 2007

Sallie Mae under investigation for illegal practices

Posted in Consolidation, Legislation Affecting Students, Stafford Loans, Student Loan News tagged , , , at 11:44 AM by Joe From Boston


The largest student loan company in America is now under fire for potentially illegal and aggressive tactics. You can read the entire article at the Washington Post.
Probe Launched on Sallie Mae Collection Tactics

By Amit R. Paley

Sallie Mae, the nation’s largest student loan company, may have violated federal laws by repeatedly using aggressive tactics to collect loans from student borrowers, Senate investigators said yesterday.

Aides to Sen. Edward M. Kennedy (D-Mass.), chairman of the Senate education committee, said they believed the Reston lending giant tried to collect debts that were not owed, fired employees who attempted to help borrowers and intentionally sent payment notices to an incorrect address to force a borrower into default.

“I am concerned that several student loan lenders may be engaging in harsh and inappropriate tactics” that “are prohibited by federal law and regulations,” Kennedy wrote in letters sent yesterday to Sallie Mae and Nelnet, a Nebraska student lender, that requested documents about their collection practices.

Both companies defended their policies and said they would cooperate with the inquiry. “We are proud of our record of helping more than 20 million Americans pay for college,” Tom Joyce, a Sallie Mae spokesman, wrote in an e-mail.

Kennedy’s probe of improper loan collection practices comes in the midst of a nationwide investigation into the $85 billion-dollar-a-year student loan industry. The unfolding scandal has revealed kickbacks and conflicts of interest among lenders, universities and government officials, prompting pledges from lawmakers of both parties to reform the system.

One of the stories highlighted by Kennedy centered on Britt Napoli, 48, a former special education teacher whom Sallie Mae put into default after he lost his home in a 1994 California earthquake. Investigators said the company violated Education Department policy.

Napoli said in an interview that he did not receive letters from Sallie Mae telling him he was going into default because he was living in a tent city without access to mail and surviving on help from the Red Cross. He said the company refused to negotiate with him and insisted that he immediately pay the $26,000 balance of his loan. Napoli said that over the past decade Sallie Mae has improperly taken $32,000 by garnishing his wages and seizing his tax refunds. The company has added interest and fees and says he still owes $72,000, Napoli said. His payments do not reduce the principal of the loan, he said.

“This is a nightmare,” said Napoli, now a college professor in Sacramento. “The people at Sallie Mae won’t compromise or listen. And at this rate, I’ll be paying them the rest of my life.”

Asked to respond, Sallie Mae provided a letter from the Education Department’s Office of Federal Student Aid, which indicated that the company had the right to put Napoli in default.

Napoli and Kennedy aides disagreed with the letter’s conclusions.

In its investigation of loan collection practices, Kennedy’s office interviewed about a dozen borrowers and former Sallie Mae employees, an aide said. Investigators said that Sallie Mae threatened a borrower would be sent to jail if he did not pay his loan. It also harassed the neighbors, family and co-workers of borrowers, the investigators said.

Joyce, the Sallie Mae spokesman, said the company followed the law and had “an excellent compliance record in performing post default collection activity.” He also attacked Kennedy’s office for publicizing the inquiry. “It raises the question as to whether the facts are important in this inquiry, and whether the matter has been pre-judged,” Joyce said in the e-mail.

In his letter to Nelnet, Kennedy said the company may have refused to provide loan and payment history information to defaulted borrowers and inappropriately consolidated loans with the borrower’s consent.

Ben Kiser, a Nelnet spokesman, said the company has “extensive systems, policies and procedures in place to stay in compliance with the law.”

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264 Comments »

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  3. some one need to help us fight sallie mae with these illegal seven yrs. on five thousand dollars loan .when will i be through.i am on disability and they take my money every mo. before i pay my bills and the gov. is letting them get away with it. can some one please read these statements. they got my ssd.to .can some one help us.

    • michko said,

      I was unemployed right after graduating, unemployed 6 long years. My loans have tripled, the harassment is unbarable, they call 15 times a day (I keep a log) they call my family, they get phone numbers of people I haven’t spoken to in 8 years and harass them, They refused to work with me being unemployed for so long I actually had the comment I should have a job by now what is wrong with you? They forced me to default, harassed me on government assistance/food stamps program – this is so difficult to deal with I have no way of paying them back anytime soon and have no idea what to do. Can’t ever make enough money to pay them back, credit is very bad. Government needs to help

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  13. LaLita June Goggins said,

    I’m a 60 yr old about to turn 61 on september 8, 2012. I got a loan for my son to go to school in the amount of $7,000 about 20 yrs ago. he had promised to pay this loan back because i could not afford to pay it. I trusted him and he never paid. they came afer me and I have paid interest and also made payments so it could come out od deferrement. I left my job I had worked for 16 yrs due to the fact the started to garnish my pay. I tried to work with them but you kinda feel threated by the things they say they will do to you as in takeing everything away from you. They sent me papers to sign and explained to me that this would help me. I had no idea that they were making more loans for me. I found out that I started out at $7,000 and last month it was $31,168.63 and yesterday 8-1-12 it is now $43,000. they threated to garnish my pay, take my taxes, judgement against me and taking everthing i own which is nothing because i,ve never been able to have anything because of this. they have added so much interest and penalities on this $7,000 loan. I feel this is very misleading to the point that i feel it is like i’m being staked by loan sharks. if you could please help me or give me information on who can.

    • Mark Gorla said,

      File a complaint at this website..I have filed and the more that do the better chance we have to get Sallie Mae shut down

      http://www.consumerfinance.gov/

    • egwilson said,

      Tell them, next time, “Go ahead, put me in jail, I’ll get 3 slops and a flop, the best medical, all the while knowing that SallieMae, will be paying for it.” They can’t touch nothing while your in jail.

  14. michelle boyd said,

    there is a website. The President and Obieden arer still running for nomiation. There is an area ( on this site) email the President. Here you can relay your frustrations out. It was Rupert Murdock who collapsed the Sallie Mae loan systems. They just bailed out spain’s banks, the Bank of America, e.t.c. Then do what I did a vote against the countries students is a vote against the democratic party. try to fit this in, p.s. a vote for Romeney ? Their are running nose to nose, who do you think wants to be president ? put in the http website in email to obahma. you can find that also. google it vote for romney. by

  15. paulyyyyy@yahoo.com said,

    Last time I checked you all knew you were taking out a loan. 100K for most degrees is a crock. Only a lazy person would blame a company for giving them a loan. If you are too stupid to read through and figure out a budget for your life maybe you deserve what is coming to you. You are not entitled to have a great job. Pay your damn bills and quit blaming everybody else for your stupidity.

  16. Susan Gibbons said,

    The constant harrassment from these people is outrageous. It’s non stop. They refuse what we can offer, and the threats are never ending. They tell us it WILL NOT be on our terms, but theirs. Lord have mercy on these people are the rudest “Customer Service” people I have ever dealt with.

    • april kingsbury said,

      sallymae has taken 12 credit cards from me in 3 days i guess i willl add them to the 7 years it will take to rebuild my credit they would not take the payment plan they r criminals it makes me sick that they think they can screw anyone over they r a company knowone shouldd ever sign with they can eat my 140 thousand in loans they did the damage now they can stick it i have covered my assets so good luck jagoffs

  17. Daniel said,

    Sallie Mae garnished my wages for a defaulted $2000 loan. I understand that and I was okay with it. The problem is they cannot add! They took an extra $680 from me through wage garnishment and also intercepted my state tax refund of $812. When I called them they said they would refund me my overpayment of $680 in two different payments. One check for $400 and another for $180 that is to be mailed out 60 days after the first check. They STOLE money from me!! How is it they cannot do simple math and instead they take too much money?? And why can they not refund it to me on one check and immedietly?? I am calling them every day to demand payment of money owed to me! They can call 5 times a day when you owe them money so I’m going to do the same! Also, I have been asking they add on interest for every day they do not pay me back! They said they are not required to pay interest on it but I do not believe that is correct because they charge me interest every day im late! Im considering calling an attorney for advice. I’m not trying to get rich off of this, I just want my money back right away and they say I have to wait 2 months before I get it all. How is it fair that when we do not pay on time they call and threaten us every day, but they can take as long as they want to return money to us that they took through garnishment which was over the actual balance due. Fuck Sallie Mae!! No wonder our country is in the position we are in now!

  18. Greg said,

    I got a Student Load from Sallie Mae in 2000 to take Computer classes for Web Design basically for the amout of $12,500. Well the classes took around almost $10,000 and the rest I bought a Computer and a Computer Desk, because back then a semi decent computer cost at least $2,000. Anyways this School was a SCAM and thinking I was going to better my life and Career, I knew computers was the FUTURE!! Well it is, but I was told “NO COMPUTER EXPERIENCE NEEDED”, Bullshit!!! Hell I didn’t even know how to turn one on and off at first. You need at least a good year of playing around on a computer to get some experience on your own terms. Anyways, I felt like I was raped and ripped off all at once.. I tried sueing them, but they only lasted a year and went out of business and were gone. So back to Sallie Mae, when it was time to start my payback, I had payed on that $12,500 loan for over 10+ years and Payed Sallie Mae well over $24,000 and they said I still owed $8,000+ on the loan!!! Yes I had 2 deferrments, but come on!! I had a friend I worked with and she had no family, but came to me and said she was going to put me as her Benificiary on a Life Ins. Policy through her work. I was flattered and thanked her, but I blew it off as she was healthy as an OX!! Well 2 years later she died form Pancreatic Cancer in just 2 months of finding out. I had completely forgotten about the Life Ins. Policy and had no idea how much it was for or even who it was through. Again, trying to keep it short here, to my surprise it was for $20,000!! So I took the $8,300 and PAID SALLIE MAE OFF!!! So they made $23,500 in INTEREST ALONE off of a $12,500 Loan!! That is worse than LOAN SHARKING!! The worst part was NOT A DAMN THING YOU CAN DO ABOUT IT!!! SALLIE MAE IS THE ANTI-CHRIST AT IT’S FINEST!!

  19. TErry said,

    I have over 100,000 in student loan debt. I have my masters degree and even in school I was getting the harrasment phone calls from you name a debt collector I got the phone call. I have been called a low life looser. Yeah I am starting to think this. They call my employers and threat them that they need to garnish my paycheck etc. Getting my degree was the worst thing I could have ever done. I contacted attorneys for help but of course $ talks and BS walks. Right now getting garnishments from my paycheck and still getting the phone calls and letters. Still I am stuck between a rock and a hard place. DCS collection company called again pm 2/27/2012 telling all my information to a co-worker… Funny I thought it was illegal to share my personal information with people. I have changed my phone number 3 times already and yet they still get it. Now I have moved back into my mothers house due to not being able to pay rent. I could not even move my furniture as I could not afford moving. I lost one of my jobs over this. I am searching everywhere for information on people that are going against Sallie Mae and there harsh tactics against us. Its a shame They garnish paycheck, and took my tax refund. Now arent I supposed to be making 80 grand a year starting with what the sensus report says. I make just about 38 before taxes After taxes about 32 a year… WTF

    • willie said,

      look there is a loan defferment and somethin else cant remember off top of head anyway ask for the one a defrment i think it postpones loan for a year and no intrest either. then do it agian and again. until sallie mae goes under if you people pay them crockes its your fault dont pay them anything eventuallly they will go under. dont answer phone dont talk to them change your number. they are gonna ruin your credit anyway and credit is what got us in this mess to begin with. who cares. i tell em record this fu. sue me lol. cant take what i dont have

      • Darlene said,

        100% w/you Willie… If people would UNITE together and DO NOT PAY THEM they would go in2 Default… Amazing how many BILLIONS of people are being financially raped, coincidence? Nope FACT…. Sallie Mae and it’s unethical way’s of business are late for an enema! The CEO Al Lord and the committee “CRV” has manipulated billions of people in2 poverty and don’t(DO NOT) give a shit, while they live on 6 figures… hmmm how do you think they got there?? people have to be smarter and learn to manipulate in defense to survive, and it is survival time…Sallie Mae is the WORST ENTITY to have any type of loan with…. I make it my objective and let every person I come in contact with, the unethical business practices Sallie Mae provides everyday, my WORST decision, have a student loan w/them I would NEVER do it again… Word to anyone “pay for your own education, with your money, if you dont have it at that time take a class, one at a time, YOU”LL NEVER REGRET paying as you go! Education should never be a burden, of lifetime hardship… It should free a person to live there potential, reach goals. Being in debt to Sallie Mae is like being in Financial prison til the day you die.

      • willie said,

        the ceo has recently built his own golf coarse , it cost millions to do that and billions to maintain it over the years. while taking peoples homes vehicles and lively hoods away and destroying there lives. i dont care if you make every single payment they find a way to screw you dont ya sallie. sallie may used millions of dollars to pay off congress to pass a bill to keep them out of bankrupcy and death and remain untouchable, they cannot take every tom dick and harry to court if everyone stops paying them. they will default the poor guy will have to sell his golf coarse wont you asshole with no consious no morals or ethics. how do you sleep at night rappist.

  20. Tiffanie said,

    I also went through sallie mae for loans during school at Western Business College, I had to leave after a yr due to moving and a nasty divorce. I was told at the beginning that we would have a certain amount of time to pay back our loans and if we were unable to pay that we could apply for defferment. I have been placed in default and now my credit sucks I owe over 7,000 with some of that being interest. I want to go back to school but am afraid of sallie mae harrassing me. Would love any info anyone has to help me fix this matter.

  21. ben said,

    sallie mae and usa funds are charging me for two semesters at art institute of philidelphia.
    I only attended one full semester and 2 weeks of the 2nd. After dropping out of their online course, the school wrote me and said they had to refund the parial payment back to the loan company. So now sallie mae and usa funds are trying to force me to pay for 2 full semesters, had grc try to garnish my paycheck , but since i proved they were not putting my full payment towards my bill they had to stop.
    They told a judge they were taking $20 a week from me, but my paystubs proved they were taking $40 or more a week, and the woman from grc, one lorrie greere told the judge they were putting $80 a month on my account.
    now sallie mae is stealing my tax refund and threatening to steal my social security, even tho i won’t be able to retire for the next 27 years. this debt has been ongoing since 2007

    • janice kennedy said,

      I am receiving disability my first check was in January 2012 I get $816.00 a month. I had not received my first check when the government informed me a creditor for a student loan (Sallie Mae) could under law garnish my check but could not take more than $66.00 and was advised to set up a payment plan and I did Jan. Feb., and March a company that was list in the government letter NCO Financial $50.00 per month but when I received my March disabilty check it was $750. Another collection company has garnished my money even though I was paying the debt. The total amount was $491, but they tacked another $100 for their trouble. To me this is an outrage, I am blind in my left eye and have glocoma in my right eye. I am having to pay for Dr. fees because you have to be disabled 2 years before you can get any medical assistance. This has been a terrible hardship for me I am single and have to pay rent and utilities and everything else by myself. I tried to explain this to the company garnishing my wages, and they we so unconcerned i broke down, I am 56 years old and have worked all my life, and I just feel so ripped off by the government I supported all my life this is how they treat someone who is trying to make it on such limited resourses. I’m ashamed of what I call the fall out of Wall Street

    • Joe Tops said,

      I am 72 years old. In 1979 I was the victim of a breakin. The thieves stoled an extra set of credit cards and my 1978 income tax records. In 1980 – a full year later – I was arrested and brought to another State to be charged with giving false information to borrrow money from a small loan company. Someone had passed themselves off as me and had borrowed $2500 unsecured!! I was charged with fraud. I was sent to prison because the Judge said that he had never heard of anyone impersonating another person and believed that I had to have been in on the theft!! During the time – when I was out on parole – someone again used my identity to borrow $5,000 in two student loans!!! Now 48 years later I am on social security and as poor as a church mouse – been suffering through a garnishment for child support since 2005 – paying money to a collection agency for supposedly fathering not one but 3 children during 1970. Nothing exists to prove that I fathered any children any where yet I pay this collection agency every month via a garnishment for 3 children that today would be in their 40’s!!! I have never been ordered to pay child support in my life any where. Yet, I can’t get into court to prove that the name is the same but the person is not!! Now the rest of my social security will be taken from for payment of the student loans – which there is no record any where that such loans were ever paid to a school so there is no way to identify the person that borrowed the money!! the bank is even in business today and no one has come up with the originals of anything!! We are supposed to live in the land of free but it seems that anyone with a scheme and the right kind of money behind you can obtain a government contract and do whatever they want to do without any form of checks and balances to make sure that what they are doing is legal. ‘The rich get richer and the poor get poorer and this is called freedom in the United States!!! Our system of government is nothing more than a form of procedures for the rich or the well-connected to take any thing that they want in order to become even more richer!! Being born in this country has ruined my life!!! I can’t leave it because I am an exconvict!!! No country will accept me except maybe as a tourist and then only for a short period. I can’t immigrant to any other country to live full time within and I sure as Hell can’t stay in the United States. Have you ever seen inside a “homeless shelter”? I guess I will find out soon what pet dogs and cats taste like because it won’t be long and I will be dead broke and too old to even think about trying to find a job!! At least there are a lot of “domestic strays running around just waiting to be caught and cooked.” What it takes, I guess.

  22. TLynn said,

    In 2005 I borrowed money from Sallie Mae. It was considered a private loan. When I spoke with someone from Sallie Mae over the phone when I was considering borrowing money I was assured that if I got someone to be a primary borrower for the loan that I would be able to change my name from cosigner to primary borrower after paying regularly for 48 months.

    Now 5 years later I’m being told that I cannot put my name as the primary borrower.

    Is there anything I can do? It makes no legal sense to my why this can’t be done.

  23. David Blachura said,

    Simply described: I started with a Sallie Mae loan, 40k, in 1995. It is now 2012 and I still owe 21K. Please – steer all young student you know away from a Sallie Mae loan.

    For Obama and our future presidents.
    Why can’t this obvious rip off be addressed??? Help us!

    MBA Healthcare

  24. Sabrina said,

    Hello,

    For the past weeks I have been recieving numerous calls on my cell phone and home phone from Sallie Mae. After recieving different information on every occassion that I have spoke with a representative, I feel that it is of no use for me to continue to cooperate with them at this time.

    I was told that I was eligible for up to 24 forebearances; however, I would need to make two consecutive payments inorder for me to apply. I have been doing this for a while.

    Recently, I requested for a different type of forebearance that a friend had mentioned to me. She was in the same situation at one point in time…however, when i spoke with a sallie mae rep. one person said with my type of loan, i was not qualified. I asked them why? They couldn’t give me any type of information…all they said was it’s because of “the type of the loan!!!” I have a career training loan.

    I asked them to send me some kind of form, document, policy, SOMETHING!!!

    I waited, but recieved nothing but more calls….I tried to inquire once more. I spoke with a lady who said i did qualify and that she will soon send me the application. I would need to fill it out and return it. No application came. I received a collection call…..I explained to the collections people about the situatio. He told me I was not eligible!!!

    What is going on here?!!! Are they not communicating, what kind of policy and procedure do they have? What type of business are they running?! I have had many many problems with them in the past. I have a full record of all of my problems that i have had with them in the past.

    I asked for them to send me more information on my type of loan and I wanted something in writing stating that I do not qualify!!!

    They sent me a lame peice of paper that looked like it was old and had no information stating what i was legible for or ineligble for.

    I would love to join any type of fight against SALLIE MAE!!! They are unfair!!

    My loan was for 35,0000 and now it is upto over 80,000!!! I have made multiple payments approximately over 8000.

    I will be making payments to them until I die! And they would probably be harrassing my grandkids after my death!!!

    This issue requires attention….how is it that there can not be a stop to this? Fileing bankeruptcy still cannot help the situation.

    This is more than an issue with sallie mae. There should be some type of law enforcing businesses like this.

    I am writing to seek any information that I am unaware of. I will be conducting more research on how I could get help with repaying my student loan. Any info will help.

    I live in San Jose CA near San Francisco.

    Thanks!
    Sabrina

  25. LB said,

    Is it not possible to organize a protest-a march against Sallie Mae-to bring more media attention to this situation with Sallie Mae and other student loan sharks? We can organize a protest similar to occupy wall street-power in numbers-we can at least put this on the plate-in the minds of politicians since that are running for presidency-put this on television screens in the homes of everyone in the US-hopefully make it international too-draw international attention to this disgrace? How do we organize a protest against Sallie Mae? Is anyone interested?
    If interested in doing a protest, please respond to inbtweendays@yahoo.com. I am in the state of California-near to San Francisco. We could organize protests everywhere-in each state.

    • LCVD said,

      I’ve seen protest against SM in the OWS. Watch on youtube. Probably see if the video shooter have information. I am in Chicago good luck over there. I am with you and hopefully you can get something going.

  26. Chris Thompson said,

    I took out a student loan with Citibank in 2008 to pay for graduate school. I was accepted to a California program for teachers that pays back your student loans. After my first year of work as a teacher last year (2010), my Citibank loan was sold to Sallie Mae. I needed my lender to fill out a loan verification form and send it in to the California Student Aid Commission. I called and talked to them on the phone in September of this year. “Yes, they had received the form, it will take fourteen days to process it.” No form was sent. It is now November and they are promising to send the form this time, “we are terribly sorry,” says the supervisor.
    I will be calling them every day until they send the form in. I realize after reading all these posts above that this is a pattern of fraudulence and negligence on Sallie Mae’s part. I will be looking for ways to get my loan out of Sallie Mae’s hands. Any suggestions on switching lenders?

  27. sallie mae and all of these other groups that take students for these long loan rides and fake politics on why it cost so much to be educated,well,its no different from the old school mafia tactics when they extort a delinquent client. They might not have a gun but it’s close because you will be contacted and threatened,They might not break your arm or your leg,just your credit score and bank account and while they remain un-paid they will use every resource they have to make your life a living hell…..Choose wisely,be cautious and be prepared!!!

  28. WHY DID I GO TO SCHOOL FOR IN THIS COUNTRY? WHAT WAS I THINGKING? said,

    Getting an education in the UNITED STATES is the worst thing you could possibly do. You would think, having a bachelors, a masters or any other degree will actually help you in life!

    Maybe somewhere else in a different country, but not in USA. The government seems to in alliance with Sallie Mae and the way they do their thirty business.

    I graduated with a bachelors, lost my job for over a year, used up all my savings to survive(Home rent, car payment, car insurance, food, gas, etc…) Have made minimum payments, just so that Sallie Mae knows I’m trying to pay and yet to them, I am a delinquent…..What a label for American citizens.

    I have been able to find GREAT employment opportunities, but they have denied me the opportunity, once I give them my Social Security number, because of all the negative information Sallie Mae sends constantly to the credit companies.

    The government knows about this thirty activities and harassment, shouldn’t they do something about this or are they working alongside with Sallie Mae?

    I regret from the bottom of my heart ever getting an education in this country, it has ruin my credit that I worked so hard for, prevented me from getting a good job…..etc.. IT’S A SHAME THAT MANY OF US ARE PAYING SO HIGH FOR NOTHING.

  29. Kj said,

    SM has been a pain in my…. you know what…. for almost a year. I was almost to graduation and ran out of funds so I applied for the smart option loan. Although I’m currently working, it’s not enough to survive off of and pay student loan debt. The other loans I had are now in forbearance (Thank God) but the private loan is not and I get call after call. I’m not sure what to do, I’ve sent them all my bills including my paystubs and they gave me a 3 months deferment, really I’m going to be able to pay in 3 months although I haven’t been able to pay in almost 1 year. And the really, really bad part is my ex was my cosigner so of course they started calling him and now I have to hear from him constantly. What to do, what to do?

  30. Kenyatta said,

    Sallie Mae put my husband as a co signer of my student loan that is in collections. He is not the co signer, however my mother is. It is on his credit report as unpaid debt and it brought his good credit down. This has to be illegal. Can we sue.

  31. Ashurbanipal said,

    we need to band together and defeat these b*sterds. I’d like to create a group to bring them down however we can. Legally, of course. If interested, contact me at 11thaviation@gmail.com. Together, we can win.

  32. Sherie Scott said,

    Help me, they are finicial bullies.

  33. JGP said,

    I cosigned loan for daughter with Sallie Mae. Loans are in default. Can my wages be garnished?

    • LCVD said,

      Yes, after they get a judgement. They will look at your bank accounts, properties, garnishment and choose what suits them best. Are these private or fed loans?

  34. luckybelle20 said,

    I am a 24 year old single mother struggling to provide for my family. I dont live on my own because I simply can not afford to do so. I had no cosigner with my loan through sallie mae. I was never informed that if I didnt graduate my payments were due immediately, nor was I informed that when I began my payments would be $250 per month. I am currently unemployed. I left Lehigh Valley College in Allentown, Pennsylvania 6 months after starting when I found out I was pregnant with my son. Within weeks of leaving college Sallie Mae began their harassment, claiming I had signed stating agreement to pay immediately after leaving college. Which they were never able to provide proof of. Since signing for the loan I have yet to be able to afford $250 per month payments. After a family friend suggested that if I sent in anything towards my loan they would have to accept it as payment, I tried that, I sent them $30 the first time. A few days later they called and told me that my payment was being returned to me as an improper payment. They refused to negotiate or consider lowering my payments to what I could afford. My loan was originally only $1500 per semester. So since I only attended college for 2 semesters most would assume that I only owed Sallie Mae $3000. Wrong! According to them I owe for 4 semesters.
    When I told them I refused to pay $250 a month on the grounds that I had never agreed to pay that much nor did I have that much each month to pay them. Thats when they rudely suggested that I apply for deferment, twice I was denied. Mind you when I applied I was on state assistance with no job. How could I not have been accepted for deferment when I met all criteria! When I was denied I called them and asked to speak with someone who could explain to me why I was denied. They refused to patch me to someone who could explain it. They completely shut me down and flat out told me if I didnt come up with $250 within the next 4 weeks that they would be forced to place my loan in default. This was a total of maybe 4 or 5 months after leaving college. Again I tried to make a payment, I sent in $50 this time. Again it was sent back to me. Again I was threatened with default.
    Then they started harassing people I had listed as references. They started calling my aunts at their job and threatening to sue them for the debt which they were told was nearly $4500 at that time. They harassed my grandmother threatening to garnish her wages because she had cosigned for me. Which I had no cosigner. So she ignored them and that was that.
    They continued their harassment, even to this day. They refuse to accept anything lower than $250 a month, they continously declined me for deferment or forbearance. They forced me into default which has severely damaged my credit. And to top that off they have recently begun threatening to take me to court, claiming that if I dont pay them the balance of nearly $8000 that I will be sued and have to travel nearly 4 hours to Harrisburg for court and that if I can not make payment then that I will be placed into a jail until my debt is paid by 10%.
    My point is this… They have harassed me and my family, they have made outrageous threats towards me and my family and to top that off they have also been unbelievably rude. When I informed them that I was not employed and that I was on public assistance to get by and make ends meet, the woman I spoke to flat out asked me, “Well is it because you dont care and dont want to work or is because you think is a joke?” I was appauled. I was even more shocked when I spoke with a male rep who asked “Are you serious? Oh, your one of those mothers who thinks being on welfare means you dont have to pay your debts!” I told him off point blank. I was no longer going to sit there and be treated like that and be courteous to them.

    They lie, they manipulate and do their damndest to make you terrified of not paying them. They are corporate bullies who think they dont have to follow the rules nor do they cooperate and listen to your unique individual situation, They simply want their money and they really dont care about being respectful nor courteous but I will say that when you get rude right back with them its hilarious!

    They can not come after your references, only a cosigner. If you do not have a cosigner do not let them fool you into thinking that they will sue your family etc. Legally they cant! They can not take your vehicle into auction unless you have more than one vehicle in your name. They can not force you into making any specific payment over $100 a month. And you can not legally be rejected for forbearance or deferment if you are on public assistance or are unemployed. They will lie to you and try to trick you, be smart know what laws are in place for your individual state. Dont let them bully you and truthfully I am very happy to see that they are being sued and I will definitely be in touch with my states rep to find out how to be included in this lawsuit for their harassment, slander and threats!

  35. Ken Neugent said,

    I have been disabled since 2008. I started calling Sallie Mae Student Loans to start the disability discharge process. It is now 2011 and the process has been botched over and over by Sallie Mae’s employees.
    They advise they have no way to fax info!!! They denies one application for discharge because the Physician used a signature stamp!!! Instead of sending it back or calling to rectify the problem it went tot file 13. They made me start all over again.
    This has been a nightmare. Now we start all over again. They need to clean house and get honest people to work the accounts.

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  37. Insurance said,

    Pretty fine post. I just stumbled upon this blog and wanted to say that I have actually enjoyed reading your blog posts. I’ll be subscribing to your feed anyway and I hope you’ll post again soon. Big thanks for the useful info.

  38. Janis said,

    We are getting papers in the mail saying we are behind make a payment and then get more letters. Every time we talk to someone it is different on what is owed where. Wright letters telling them where to put the money on what loan. Still screw it up. Get more letters with late fees and then call and they say that loan is paid ahead it is the other loans. Sallie Mae is a scam. They are making money off of people. My son has been laid off almost 2 yrs. They are telling him something different every time he calls and then lose his paper work. Something must be done on how they treat people.

  39. Justup247 said,

    If you seriously or otherwise want to do something about this “student Loan scams”.
    1. Fact- THEY have found out that they can successfully bully us as individuals and we haven’t any options… they still “TAKE” their money, one way or another.
    2. FACT- Sallie MAE was the gov., until late 1990’s… the laws that were broken were broken by the GOV.. The fines that were paid by Sallie Mae were paid back to the gov.. Sweet deal
    3. FACT – Its only IF we get our shit together and collectively fight this crap that we as individuals can ever beat them… IMO
    I’m not an attorney nor anything except a thoroughly pissed off old grandmother…. but experience counts for something!
    Visit my website, use the contact info and lets do something besides cry about it…

    • FedUP! said,

      I finally have contacted an attorney after fighting with Sallie Mae about late payments. The terms of the loan that I co-signed for were interest only (5.75%) while in school. They set it up as a LEVEL payment plan which means principal and interest! I have fought and fought. Each person, including superviors agreed with me that there was an error and promised to correct it. STILL the collection calls came. One time, they called my house and cell phone at the same time. They can’t get it right! So, hopefully, the attorney will HELP them get it right!

  40. Christina said,

    In 2005 was told by William D. Ford that I had defaulted on my student loan and owe 45,000. I thought that was wierd because I had paid off my student loan.That same month in 2005, I was in a house fire. It took me a while to get back on my feet. This damn mistake preventing me from getting housing, and I was living in transtional housing for nearly four years.In 2009 after numerous calls to William D.Ford, I finally called Sallie Mae directly. I spoke with Dennis Smith. I asked if the loan was paid off. He said yes. I asked him twice he said yes. So I explained my situation and asked for a copy of the reconvance letter which is proof of payment and asked for his extention. He said he would send it in the mail. The letter never came in the mail.I called back and his story had changed and he told me that the loan was paid by the California Student Aid Commission. I told my mother what had happened. She agrees what they are doing is WRONG. Its theft. I dont know what to do???? I called the student ombudsman. He told he told me to call the claims department at Sallie Mae. I feel at a loss. I can’t get a loan for a new house because of this damn student loan, I am renting i found a place that was empathetic to my situation but it is not rent controlled. I do not know what to do. I am really nervous and now this loan is affecting my credit.

  41. Diana said,

    I at the age of 32 i ended up in divorce in 1989. I was a single mother with 3 children to raise and support because their father was awarded to give 150.00 a month for rent, bills,and all other needs for the children. I thought that maybe if i would get an education i would do better for my children. I had an experience in 1990-93 when i attended a university. I recieved student loans for the amount of 3,000. than i had to quit attending college for personal reasons. I had to work to make ends meat. I was not even aware of any way to postpone my loans, so 10 years went by and of course i kept getting calls and letters from collecting agencies( sallimae) and ended up in default. In 2001-2002 i decided to go back to attend a community college and had a very hard time getting back on track. I had to pay student of education 1,000 in payments before i could go back to college. I recieved a statement of my passed history of my student loans and my interest had accumulated 7,000 dollars in ten years that i was in default. now i owe the loan agencies 10,000. my tax returns were kept back because of my student loans. they kept my tax returns for about 4 years in which they totaled around 5,000 dollars and besides my wages that were being garnised. and i thought i was done paying but i still owe them 10,000. where did all this money go to?

  42. Angela said,

    My daughter has several loans with Sallie Mae, she is not working, and I am unemployed. My mother who is 84 years old, co-signed for my daughter. Between my mother, myself, and my daughter, we get at least 40 calls a day from Sallie Mae. They are confused down there, don’t know where their corporate office is, they are constantly messing all the loans up.
    I need some assistance, as I faxed a letter over to Sallie Mae in March of 2010, still waiting for them to lower the payments.

  43. Brandon said,

    I paid Sallie Mae off back in 2003, and out of the ashes they started sending me bills again in 2009 saying my loan is in default and was taken to collections. Everytime they send me something for collections I reply with a letter from my JAG officer, my loan payoff paperwork (from Sallie Mae) and the part of my credit report that shows the accounts closed. It stops for three months then a new collection office tries the same thing, so I do the same as I mentioned earlier and it stops for two or three months and then….well, you get the point. Sallie Mae is a bitch ass crooked company that needs to fold.

  44. Donna Bell said,

    I am a 61 year old woman. I acquired a student loan thru Sallie Mae in 1974. Over the years I have run into a lot of hardship. When Sallie Mae would not work with me, they would I guess sale the loan to another company.

    There has been at least three different company’s since my loan began. The other companies would turn my loan over to collection agencies. My loan started out $2400.00. Everytime this loan goes to another company they start the amount over. This loan has been &11,000.00 three times and Sallie Mae has it that I owe &8000.00 now. I have the loan in deferrement at this time. My situation has gotten worst. I now have to write sallie Mae to let them know the state I am in.

    My health is bad from a stroke last year. Increase in Medicines I have to take. Allowing my daugther and her four kid move in for eight months. None of them worked. I’ve become depressed. I stay stressed, I have anxiety attacks. Extremely high blood pressure and don’t know how I will pay for my medication or my house or bills.

    I have been indebted to Sallie Mae for 30 years. Even a stupid person know that bill has been paid three time over. My advise to the young people if at all possible do not “Ever” get a government loan for anything. You will regret it. Believe me!

  45. Jason said,

    It’s sad to see that all these people have outrageous student loan debt. However, everyone is complaining and not being responsible for their own bad choices by taking out loans they could never afford in the first place! Plus the fact that most of the individuals chose to be “educated” at for-profit non-regionally accredited schools. Seriously, who honestly goes to a technical or on-line college and pays these outrageous tuition costs and doesn’t realize the trouble they are getting into for a $80,000 two-year TECHNICAL (meaning on-the-job training) degree? When a school shows you their tuition is upwards of $1000.00 per credit hour, why the heck did you sign a loan form for thousands of dollars, AND THEN, go on to sign the MPN form? You have no one else to blame but yourself, so start taking responsibility people!!!!! I’m a graduate student at a reputable college, and NEVER once did any of my financial advisors suggest that loans other than the Staffords be taken out, NOT ONCE IN 6 YEARS! I’ve also surveyed my friends on this topic, and they have the same sentiments as well, when you sign up for the easy way out, you have to deal with those consequences. In summation, stop complaining about YOUR OBVIOUS POOR CHOICES and repay the loans YOU SIGNED UP FOR!!!!!

  46. Woody said,

    non-payment

  47. ANGELA said,

    I’VE BEEN PAYING ON A STUDENT LOAN SINCE 2005 AND I OWN MORE NOW THAN I BORROWED??????!!!!!!!!??????!!!!!!

    • Woody said,

      Was this due to Capitalized Interest added to the principle debt? In other words… you are paying interest on the interest if you when through a period of now payment..

  48. Cynthia Smith said,

    I have a student loan I started with Sallie mae in 1991. Since that time I had deferments but did not miss payments. My orginal loan amount was $16,000. In 2004 I made a payment of over $8000.00 and since that time I have not missed. REcently I was told by sallie mae that I had to double the amount I was paying which would be about $500 a month because the loan had to be paid in full within the next few years because the 25 year rule. I have already paid about $24,000 to Sallie and all payment go toward interest. If i could afford to pay I will be paying in excess of $45,000 on a $16,000 loan they were calling cell and have recently sent a letter to my employer my mother and email address. What can I do.

  49. Mhl said,

    I have been put into default with Sallie Mae and took their road to recovery the default came from a direct deposit mishap, my amount had be somewhat nomnial and I assumed it had been coming out. Once I became alerted , only after default had occurred, I contacted to get on the right track. They put me in a program for 11 months, I regave them my bank info and they started debuting me. Then without warning stopped 10 months in an just called me to tell me that they are garnishing my wages for 15% because they did not have my signature for the 10 months. Therefore they stopped taking my moeny and defauted me for it. So basically I went from a nominial amout to giving up my rent in under a year while fully complying. Does not taking my moeny constitue a an agreement? How can I be at fault if I had been totally unaware? Futhermore what do I do?

    • Floyd said,

      I feel your pain. For the past couple months i had been paying on my loans through their collections department, because my loans were in default. They had gone into default because month to month Sallie Mae had mysteriously lost my banking info, or had old info saved in the system to which I told them to remove because the account was no longer open. This got way out of hand and today I called to see why my loans were not payed this month and they told me that they had no record of my signing up for automatic withdraw!

  50. mike said,

    I got a Sallie Mae consolidated loan after I graduated from A tech school in Minnesota in 1995, I had been paying on and off, till I went into the Air Force in 1997. I got out of service and went to school again. Anyways, I had interest accrued on the loan, after a number of times being in forbearance through not working, I have discovered something disturbing I have NO principle paid. I made payments on this loan from 2004 and stopped 3 months ago. This loan is at 7,330.09$ with the original amount 9,672$; however that is reflecting interest (9%), with monthly payments of 149$ withdrawals from my account.

    MATH does not compute. . . Sallie MAe is a criminal organization that preys on the weak who long to get ahead in life. They are doing it again to me after all my years of service and dedication to pay them, they send the credit collectors. I have not spoken to nor read one letter from a Rep from Sallie Mae.

    • mike said,

      …”I have NO principle paid. I made payments on this loan from 2004 and stopped 3 months ago (Feb 2010). This loan is at 7,330.09$ with the original amount 9,672$; however that is reflecting interest (9%)”…; I have no idea what the actual Principal is on the loan.

      As a follow up, my Father paid half of my loans off in the 90’s, he called and stated the only amount I owe should be around 3,500 K.

  51. Takeisha said,

    Sallie Mae is rediculous. They call everyday and I just got off of the phone with a representative and manager and the manager was arguing with me and telling me that I was going to listen to him and let him talk. Also, he got the balls to say that he don’t believe I want to work nor looking for work. He also asked me how in the world am I paying my other bills. They are so disrespectful and harrassing. I urge no one to deal with them for education purposes.

  52. surine said,

    my daughter along with her cosigner applied for a loan at Sallie Mae she and the cosigner went through hell before the loan was approved. the amount was $10000 the school certified $4811 which was owed to them this amount was paid to them she contacted Sallie Mae about the rest of the money Sallie Mae told her they go by the school policy and she would have to applied for a new loan with her cosigner is this right after both she and the cosigner sign a contract for $10000. After reading these postings i am thinking of tell her not to bother with them she is an international student so not much is available to her

  53. bob said,

    they want me to pay on a school loan i never made. matter of fact the crook who use my info put the wrong middle initial in my signature and the jerks processed this and now want me to pay. but fed law says i can sue them for purposely ruining my credit.

  54. Irene g said,

    Chris, I can feel your anguish over the harrassment of sallie Mae. They just don’t go away or listen to your reasons that you can’t pay. I am a 76 yr old grand mother who co signed a $3000.00 dollar loan for my grand daughter. over 5 years ago. We were victims of the nightmare storm, Katrina and expenses were mind boggling. They listened for a while but started back meaner than ever. They called me every day and came at me with such a vengence. The loan became $5980 dollars with interest and penalties. My credit score went down every month. I was trying to get accepted in an assited living home, but because of my credit, I was refuased.Finally I turned to my credit card company. They agreed to have all of the loan transferred to my credit card. They also worked with me on a lower finanace cost since they saw what a good customer I was prior. My granddaugh is paying me what she can afford each month and the sense of relief is enormous. I would advise anyone in this situation to check if something can be work out with a personal loan and you pay them back at a cheaper interest rate. Hope this advice helps. Wasting your efforts on fighting Sallie Mae is fruitless.

  55. carrie said,

    I’m a married mom of four and I cannot pay the loan. My husband will not pay the loan payments. He was paying before for years and stopped paying because the loans actually went up instead of down. Instead of 24,000 I now owe 27,000 and some change. Its getting worse and worse. I’m home all day with my kids. One of them is 10 weeks old. I have a severe anxiety disorder and OCD and cannot work. I’m on medication. I’ve used up my defferments and I’m being hounded my Sallie Mae for payment that I cannot give. I’m drowning in interest and the interest is accumulating and making it that much more hard to pay. I don’t know what to do. I feel like if I were dead this would just go away. I don’t know what to do.

  56. heather said,

    ok so i have read every comment on here and have a serious issue with sallie mae my husband who was a student 5 years ago was contacted bye sallie may in 2007 when he moved to maine from NC they told him that he was to repay his student loan of 1,313 dollars that his ex step father took out in my husbands name we told sallie mae that my husband and i had no idea that he had a student loan cause at the time he was 19 and we asked for all the orginal paper work cause we had no idea what they where talking about they said they had sent letters to my husband which was actualy going to his ex step fathers adress they where emailing his infomation to his ex step fathers email adress ( which is on themaster promseary note ) and calling his ex step fathers number which was also the contact number trying to reach my husband when we reported to sallie mae that the information on the Note was cause of his ex step father took out the loan in my husbands name they said that they neede proof it was a fraud case when we asked how do we go about reporting the fraud they said it wasent there problem and we had to get the orginal paper work and contrast from his ex step father and hung up on us when we got ahold of his ex step father he said he would take care of it cause he is the one who took and electronicaly signed my husbands name and infomation to the application we never heard any thing back from sallie mae till my husband and i filed taxes on feb 12 expecting a refund from the irs instead we got a letter stating that the money was being sent to sallie mae /deparment of eduication / allied inc to repay his student laon upon this letter i contacted sallie mae and yet again told them my husband did not file for this loan that his ex step father fraudently filed for it and that we would be contacting a laywer about it they sent us a copy of the prom note that stil has his ex step fathers adress phone number and email adress for contac info and refuse to talk to us about it any more my husbands laon in 2005 was 1313 and they took 1605.90 of our taxes on feb 22 and said my husband still owes 545.93 for intrest and collection fees they have then told us that my husband is the only one who took out the loan and that the contact info dosent matter i tonight have recived 12 calls from allied telling us we need to pay them within 30 days or they will add more fees and garnish my husbands wages and hung up on me 4 times when i called back to talk to a supervisor i got conected right away to a call that was already in progress with another client of theres and tried to tell the guy who was a rep from allied i was in on the call he ignored me and contuined to talk to the person he had called and i heard all the person personal information including ssn dob and adress full name and even the persons account number i tried again to tell the gentle man that i couldnt disconnet the call it wouldnt hang up and he fianly hung up i called back right away and talked to another rep and told her what happend and she said the phone lines where messing up and that they will be taking care of it shortly for me to disregard the persons infomation i had heard i had asked the rep what the leagel age of consent was to sign into a contrat for a student loan and she told me it was 18 unless the person was married had a co signer ammanaspaded or court docs saying that a minor could sign into the contrat or parents permission which would be on the promsery note my husband was 17 at the time the note was signed and no parents signed it he didnt have a co signer and i told the women that this contrat was fraud and we neede to have all the paper work they have on this so we can report it to the police they refused and hung up on me so if any one has any infomation on what to do please feel free to contact me at mommyoftwobrats@yahoo.com and let us know since no one else will help us and we cant afford a laywer since im disabled and husband makes minium wage at mcdonalds

  57. John said,

    I am confused saw my tax refund was put into my bank account on 2/11 but today I get a letter from the IRS saying my refund was give to Sallie Mae to pay for some my loan. Last year they did not take my tax refund but the year before they took some of it so was not expecting them to take any this year with the plan I agreed to with them. Now I had already used a little of my tax return the other day so have to really limit my spending for a few months to make sure my account doesn’t get overdrawn. Are they able to take the tax refund after it has been put into your bank account?

  58. marge arnett said,

    My son’s income tax refund is being offset to pay an unpaid student loan in ny. When we filed we put our bank information on the return so any refund could be deposited into our bank account. Now I am wondering if fms or the federal offset program can share that information with hesc so they can freeze our checking account for the rest of his student loan? Can they share personal checking account information with other agencies?

  59. AMS said,

    Having problems with them for a very long time. Need to get financial advice!

  60. Lori McDonald said,

    Can someone tell me if Social Security benefits can be taken to satisfy student loan the collection company trying to do this is Pioneer out of New York

  61. i also want to start a law suite.
    1. refusing to adhere to govermental laws( discrimination against dandicapped individual)
    2. both sallie mae and westwood, did not not ify me when i first contacted them when they were shut down for fruad
    3 the federal ” don not call list was broken”
    4. embezzement of federal funding from government it’s self.
    5. scare tactics to obtain more funding when loan was paid off in full. ausugt, not fall break
    may i sugest the attuorny general of funding and education becagin a class a law suite on the deceptictive dealings of not salie mae, but of westwood also. fleesing the students who need this education to compete with progessive commputerization, they defraud our military overseas when the are trying to comensate , even asfter serving uncle “sam”
    laws are not meant to be rashly delieted at whim. ask obama, our president, what he thinks of the aternury general start a aclass A laws suite to return money to those who have become bankrupt, as the laws for these funding are comprimised as they have been.

    I was told each one must firle with the head of eductions to start this suite.

    who have i contacted.

    if not the proper authorthity,

    imail the positition of who.
    ( these computer system also has pop, but http:/ works best.)

    ( Class A law suite request of aternury Genernal pertaing to embezzel ment of funding from sallie mae and westwood college( online). edu.

    sign up here.

    • Joe said,

      Is this a joke? Please say it is… Hoe the hell did you ever get in to college in the first place? Even a joke school like westwood has some standars… Wow…

    • Mike said,

      Im interested in getting a class action started about thier deceptive collection practices and their failure to obey laws that pertain to discharge of loans if it it closed while you’re still attending. My school COMPUTER LEARNING CENTER was shut dow by the U.S. Derpt of Education back in 2001 – I have more details and a solid hands down winner of a case… get back to me

  62. ist sallie mae loan, december at westwood colleg, onlie.edu.by march i had enrolled in college near our house. was contanctly harssed by westwood college and salie stating my loan was in default, sold off to creditors, then in fact i had paid the loan off completely in august of 09,. i was enrolled in fall semesrt for 1/2 then decided to go 3/4 time using pell grant which paid for spings( books inclding tuition),
    i have gotten a reacent rash of calls from sally mae insited i make a payment plan for loan which westwood online maded in december.
    yesturday i did recieve a notice that this loan was paid in full. these to institutions of ” higher”, learning are scaming the students who need it the most. westwood has no accreditdation, and does not apply to eoc laws.
    follow up with paper work which lists me under the odc progaming. at bristoll communiny college, fall river campus, mass. on elesbry st.
    the president jack sprega of bristol community college. thank you.
    ( both sallie may and westwood college. edu are shisters taking advantage of president obama’s education offereing.
    done.

    michelle boyd

  63. Ms. Dee said,

    What do you do if the school you attended was closed for fraud? I have been unable to get any relief from the loan takin out in 1995 (18) $2500, now $11000 with interest and penalties due to unforseen harships.

    I have explained that I was not receiving the education promised and withdrew from the school, and a very short time after that the school was closed for fraud.

    • Tammi said,

      Dear Ms. Dee;

      I am in the same boat. I took out a $10,000.00 loan in 1992 and the school closed. I now owe $26,000.00!!!

  64. Heather said,

    Yeah… Sallie Mae is seriously messed up. They always send me statements that have major discrepancies… such as my balances being vastly different in two bills for the same month, same loan, and in the same payment period.. Totally effed up. And they always screw up how much I pay each month on my loans… Plus, they charge me late fees before the payment is even due every month. They try to get my co-signer to pay the payments I’ve already paid all over again… and they always have my online statements showing my payment as being about $500.00 more than it is. Plus, they charge me almost $100.00 each month is late fees when I’m paying a full week before the due date. Pisses me off. And, to top it all off, they NEVER put any of the payments towards my principle, which is screwy… I mean, a portion of my monthly payments goes to the principal every month… al least, it’s supposed too. I set it up that way. And the effen calls. They never call me or send me ANYTHING stating I’m past due on my payments, but they due harass my co-signer and they lie to her telling her I’m about to default on my loans. Shit. I’ve been taking a LONG time to try to find out as much about them as I can… I’ve already had to deal with fund embezzlement on these loans while IN school and THAT was a pain in the ass… now it looks like I might have to drop the payments down to an interest only payment and save up to do a large payoff +a fee… Effen stupid lending institutions. I’m so glad I have less than $10,000 owed to Sallie Mae, but it sounds like i might be doubling that by the time I pay off the loans….

    Does anyone know who Sallie Mae’s banking/credit regulator is? I know that Chase bought out an interest in Sallie Mae, but I still haven’t been able to find out who regulates this company…

    • dd said,

      consumer financial protection bureau an the Federal trade commssion. You can also file a complaint with your state’s attorney general office

  65. Lindsay Campbell said,

    Sorry my note is spelled wrong or whatever I am pissed and I need help fast

  66. Lindsay Campbell said,

    I would like to join in on suing sallie mae… I have been going throught it with them since 2006. First it was the fat that I have a dash one and dash two account. So in speaking with them to make payment arrangements or to make payment I was always told the wrong amonts because one would be looking at one page someone else would be looking at another. So I would either have to pay if I have or use forberance or deferment time. I notified them in 2007 that I would be on disabilty due to my preganancy could I send them any papers so I wouldnt be dealing witha mess once I was back on my feet. They told me no to just use my time which eneded up getting used up. Then in 2008 the took extra money out of my account told me I still owed I wasnt able to pay my sons daycare that week… then I still had to pay another 250 after that. Then my finacial situation wasnt in the best place they told me the least of payment for my private loan they could do was 360 …. who has that a month. I now work at a resturant and I told them earlier this year I could on afford to pay $100 a month until I find some thing else. It only cost about 75,000 to go to school why do I owe 109,000. then when i am trying to pay something they put you in programs that ypu dont know anything about. I was just told I was put in to a selct step way back. I did get on on my federal loans but not my private. Now they are saying on of there reps put me in but they dont hve to tell me they just got the payment lowered so I should be greatful WTF…… then also they insulted me by telling me I need to look hared for a job no wonder i CAN’T PAY MY LOANS WORKING AT A RESTURANT ISNT GOING TO GET YOUR LOANS PAY OR DONT YOU KNOW THAT THEN THE REP SAID…. I AM IN SCHOOL NOW AND I AM ALSO IN THE AIRFORCE SO I DO HAVE TO WORRY ABOUT LOOKING FOR A JOB WHEN I GET OUT!!!!!! I explained to him I am a single parent, who put my self through school, i have two degrees , also it is not easy to find a job to day!!!!!!!! I want to sue them because I had stuff go all they way up to Eddie thier OMBUSMAN……. I have had a issuse today because of something I was told on 11/13 by a jordan Who said post date a payment for this … I will give you a all in to weeks to see about lowering your payments for this one or getting you 6 month forbarance to day i was told no he gave wrong info we cant do that. This has been going on since 06. I would like to sue them what do I do where do I sign up!!! or Who can help me with this?

  67. Dan said,

    I have a friend who has been forced into default by Sallie Mae for refusal to pay off loans that she is not even required to pay off yet. She cannot afford a lawyer, because she is barely making ends meet, yet she also makes “too much” money to receive assistance from a state-appointed attorney (apparently if you make more than $7.25 an hour it’s “too much”). Does anyone know of attorneys who are working pro-bono, or who at least require only a small fee up front, so she can resolve this matter? She is not even looking for monetary compensation from these scumbags; she simply wants the delinquency to be lifted so her credit can be restored. I repeat: she does not owe anything until 2011. If anyone can help, please let me know.

    • heather said,

      if i was you i would contact your local state rep and ask them about any laywers tahst what we have to do i guess and have your friend write to the credit reporting agencys to have them challlange it here is a free web site for her to see her credit report and chalange it hope it helps https://www.annualcreditreport.com/cra/index.jsp

  68. karen ermeling said,

    I was accused of taking out a loan of a person that lived in michagan that I have never heard of. this all happened so fast. I got a call saying that I was being taking to court and my last choice was to pay right now are sallie mae would take my home. I asked numerous times for proof that I signed this paper but never recieved it. the calls all day and all night, they were abusive, mentally exausting and total harrasment. I had no choice but to pay if I want to keep my house and my sanity. I had to give him a check number right there and then to stop a law suit and had to borrow the money now when I do need school loans for my real children sallie mae has ruined my credit and will not say my account is paid in full with the credit bureau

    • Karen – you should contact a lawyer. They bullied you into paying on a case of identity theft and that’s illegal.

    • Monica zoepfl said,

      Sallie Mae scares the hell out of me! The interest rates are ridiculous!! And that makes it very hard to pay off.

  69. Dillon said,

    hey there, I’ve been trying to find a way to join a law suite against sallie mae. From the very first month I’ve started repayment on my loans I’ve spent 3 hours at a time talking to various people about why I’m being charged for late fee’s i don’t owe.this has been going on for years…I have been financially raped by this loan provider by being forced to pay hundreds of dollars more then I owe every single month. I finally had a collections employee admit that they were trying to charge us for something that we had already paid…and not only a day later received numerous calls from debt collectors from sallie mae once again attempting to siphon money from me. I have all the records, I just need to band together with others with a similar problem to get my money back or at the very least do SOMETHING about this evil company!

  70. shaz said,

    Are there ANY private student loan lenders that my sons can get loans with that won’t require a co-signer, are deferred till after graduation, and don’t have outrageous interest rates? ANY suggestions would be appreciated. They have already borrowed the max for Staffords, Perkins & Ford’s Direct Loans-Going to big name schools & got a good amount of grants. They still need to borrow about 10k each & I am newly married & will keep my promise to my husband that I WILL NOT cosign any loans for them, but can & will help them find one, is there one reputable source somewhere…??? All the SallieMae Stories are truly horror stories & my boys are about to consider “Smart Option” loans with them if they can’t get anything else, with us (under free will) paying the interest! How can that be a “smart option” when these kids are full time 2nd year students in school full time??? How are hard working kids today supposed to do it. HELP!!!

    • Shaz,

      In this economy it is HIGHLY unlikely that you will be able to find a private loan for an undergraduate student that does not require a co-signer. ALl the major banks – such as Sallit Mae, Wells Fargo, Citi and SunTrust – require cosigners and I believe nearly all, if not all, the more minor banks do as well.

      The reason for this is that students are a high risk group. They have no credit and no assets with which they can back a loan.

      Regarding the extra amount your family needs to find, the federal government assumes that parents will borrow or pay for the difference. There are thousands of students whose parents won’t give their financial info for the FAFSA and these students are even worse off as they won’t qualify for Stafford or Perkins loans.

  71. ALEX said,

    I HAVE FOUND OUT THAT THERE ARE NATIONAL VIOLATIONS OF THE FAIR CREDIT CONUMER PROTECTION LAWS.
    IN MY CASE TWO JUDGES RULED IN OUR FAVOR.
    I ENCOURAGE ALL OF YOU TO FIND AN ATTORNEY THAT SPECIALIZES IN FAIR CREDIT COLLECTION(S) VIOLATIONS WITHIN YOUR STATE AND FILE TO SUE THEM. THIS IS THE ONLY WAY THAT YOU WILL BE HEARD.
    THE DEPARTMENT OF EDUCATION WITHIN YOUR STATE IS THE CATYLST IN PORMPTING THE COLLECTION AGENCIES TO ABUSE YOU. IF YOU DO NOT FILE AND CONTINUE TO HAVE CONTACT WITH THESE COMPANIES THEY WILL NEVER LEAVE YOU ALONE AND WILL CONTINUE TO CONTACT EVERYONE YOU KNOW. ANY AND ALL JOB OPPORTUNTIES WILL BE SQUASHED AND YOU WILL BE TEERMINATED FROM YOUR JOB(S) THEY WILL JUST SIMPLY “LAY YOU OFF ” SO THEY WON’T GET IN TROUBLE.
    THE FLODE RUIEND OUR LIVES.
    AN UPDATE ON MY SPOUSE. HE SUSTAINED RENAL FAILURE AND JUST OVER THE PAST SIX WEEKS HAS HAD TWO BLOOD VESSAL SURGERIES WITH A THIRD IN ANOTHER SIX WEEKS IN PREPARTION FOR DYALYSIS. HE HAS HAD REPEATED HOSPITALIZATIONS SINCE THAT HORRRIBLE EVENT PROMPTED BY THE COLLECTION AGENCIES HIRED BY THE FLDOE TO ABUSE US.
    I WOULD NEVER RECCOMEND THAT ANY PERSON APPLY FOR A STUDENT LOAN. IF YOU CANNOT PAY FOR YOUR CLASSES PER CLASS DO NOT APPLY FOR ANY LOANS BECAUSE IF SOMETHING EVER HAPPENS NO ONE CARES AND YOU AND EVERYONE THAT YOU LOVE AND KNOW WILL BE ABUSED FOR COLLECTION OF THESE LOANS.
    MY SPOUSE IS NOW TERMINALLY ILL. I HAVE BEEN HIS CARETAKER SINCE 1997 AND WE HAVE HAD NO MERCY SHOWN TO US….
    DO NOT ALLOW THAT TO HAPPEN TO YOU.

  72. Donna said,

    continued…I did co-sign a student loan for a friend a few years ago so he could be schooled for a new career after he lost his paving career due to physical reasons. Before my signing he informed me that there was a clause with Sallie Mae that states that if he makes the payments faithfully and regularly and on time for two years that I would be automatically dropped as co-signer and that was our agreement. He agreed to do this so I could be free of this in two years time. He swore that he would make sure that I would never be bothered by Sallie Mae for payment and that he would pay it religiously since HE is the one that would get and use the funds…not me. He did not have to start paying on the loan until after graduation. Well, right away after graduating, he started to get behind on his payments and up to now he has been granted many deferrments/forbearances. The loan amount he owes is now over double what the initial loan amount was…Here’s the catch though….when I signed the loan application for the school we were together near Sacramento, CA…he then took the signed application, by himself, to the school in San Francisco, CA…I stayed behind at home. When he began not paying faithfully, if at all, I got really worried and I then realized that I never got a copy of the loan application. So I contacted the school and asked for a copy of the loan application. I received it about a week later and when I opened it I about keeled over dead, for I saw immediately that the loan amount of $24,000 that was written in the loan amount line when I signed it was crossed out and a different loan amount of $30,200 was written above it. There also appears to be a set of initials (kinda sketchy) written in alongside of the new loan amount. I know these initials are NOT mine!! I was never notified of this change nor did I give any approval for any change of the loan amount. I had no clue any changes were made to the loan application. I wasn’t even there when the application was altered. I have tried for years to get someone…anyone from Sallie Mae to listen to me….to understand that the loan application was altered witout my knowledge or approval but no one seems to care. I checked with a lawyer and he says that this does in fact make the loan application null and void. That if Sallie Mae takes me to court, which he says they MUST do before they can garnish any wages I earn, to submit this loan application to the court. I just want to be off and free of this loan so I can repair my credit that my “supposed” friend (now ex-friend) is trashing….I didn’t sign up for this!!! Suggestions anyone? Please help me!!!!

    • Donna,

      There is a clause on the Sallie Mae loan, but what your friend didn’t tell you was that the co-signer can be removed ONLY after 2 years of on-time payments. Once your friend missed that first payment, he ruined your chances.

      Unfortunately, you’re now stuck. Kudos to you for consulting a lawyer – he’s correct. An altered loan application without the consent of both parties is null and void. The difficulty will be proving that to Sallie Mae.

      Good luck!

      • Chris said,

        My situation is similar but a bit differnt from you Donna. I am the student who applied for a private loan through Sallie Mae. Under the first loan, I was paying 18.25 %. When it was time to reapply for FA at my college I was told I needed a co-signor. So my parents co-signed on my new loan. Fast forward. I graduate, I was late on my first payment because we were in the process of doing a consolidation on the loans to reduce the interest on the first loan. We consolidated both loans, and I made timely payments for 26 months. I contacted Sallie Mae to have my dad removed from being a co-signor and they said I could nto have him removed because the first payment was late.

        What I want to know is if we signed a new promissory note in teh second consolidation and I made timely payments every month after the new note was signed how can they retain my co-signor? Does this seem like a breech of contract or am I crazy?

        Thanks,
        Chris

    • dd said,

      file a complaint with consumer financial protection bureau , the Federal Trade commission and the your state’s attorney general

  73. Donna said,

    I have been reading all the posts regarding Sallie Mae and I haven’t seen one that describes my problem.

  74. lily said,

    i need advise! i co-signed for a friend in a very rational moment and did not see it comming that she soon after that got a divorce and and a large list of bills afterwards. she’s not able to make payments and when she contacted sallie mae they agreed to freeze payments for 3 months untill she is ready to start repaying again. the following month they sent a late payment as well as non-stoping calls to me the the main person on the loan. my friend is not able to make the high payments that keep jumping up.. please advise and let me know my personal options? ( p.s. im a current student that is not able to pay off her bills)

    • Lily,

      Unfortunately for you when you co-signed the loan, you agreed to pay it back if the main borrower could not. That is what a co-signer is, another person agreeing to help pay back the loan.

      Have you and your friend gotten on the phone together and called the company? A united front may help, if you can both document your economic hardship. You should provide Sallie Mae with documentation that you are a full-time student. Federal loans automatically go into deferment while attending school. That could help you.

  75. Pauline said,

    Sorry for the jumbled typing something with computer we’re in the middle of a storm..

  76. Pauline said,

    My daughter was paying her loan they sent her job a garnish I spoke with Sallie they said send 600.00 to bring current which I did my daughter began paying again they sent another garnish this time it was another amt to bring current, she again started paying they garnished the 3rd time. We decided let the garnish go thru so they take money each check now she is getting letters to send in more on her own.
    A frien dof her’s had the same thinghappen so he let garnisg go through he’s receiving letters to pay more and instend of his loan going down it keeps going up..
    A girl frien who is paying has same situation no garnish but loan never seems to be going down.

    • Pauline – the garnishment appears to be a sort of minimum payment – it keeps the loan “current” but is not paying down the balance of the loan. Has your daughter called the company to ask how much she needs to pay each month to pay down the balance?

  77. Kelly said,

    Dad took out loans for son through Sallie Mae and we want to now get them out of Dad’s name and into our son’s name. Any suggestions. Thanks

    • Kelly,

      If he took out Parent PLUS Loans then it is not possible to move them into your son’s name. If he took out private loans, please read the application carefully – normally, these are in the child’s name with the parent as a co-signer.

  78. Iris said,

    About 7 years ago my granddaughter was in her final year of college and needed a co-signer for a $3,000 loan to complete her courses. At that time, I did not hesitate because even though I only received Social Security as my income I felt that $3000 was not that much money and I was glad to help. Shortly afterwards, she graduated and even though her first job had limited salary , she began paying Sallie Mae above her other loans since they were so insistant on getting paid on time.
    She began to have some financial problems and got forbearance.Well. in 2005 the horrible storm Katrina past over us and I lost things in that storm that I am still trying to count. All of the contents of my home was lost and my home had over 75% damage. The nightmare is still with me. I am 75 years old and anything of a minor nature can send me over the top. My health has become severly affected . My granddaughter has had severe financial problems and has contacted them and paid partial payments when she can. Instead of owing $3000 now the loan is $3500 in spite of the payments that were made.
    I had every intention to pay them when I signed for that loan. I am bearly able to make ends meet from month to month with Dr copayments and medicine. I have called SM numerous times and explained. It seems to fall on deaf ears. I amm getting calls every day two or three times a day. I got a call on Sunday when I was in church! My hands start shaking every time my phone rings. Now I found out that each month they report me to the credit Bureau. Is there any advice I can get I am at my wit’s end. Thank you.

    • Iris said,

      Just as a follow up, my phone rang twice while I was typing and my son, who lives in another stae received a cal looking for me. Noone ever gave his number, our last name is unusual and I guess they connected us that way.
      Iris

    • Iris,

      Unfortunately, as co-signer you agreed to help repay the loan if your granddaughter could not. The loan is now higher because the company has capitalized the various fees she has encountered by not paying the loans on time.

      Has your granddaughter asked about a 2nd forbearance or a deferment? As her loans are in default, she won’t qualify for consolidation, but the company may be willing to work with her on an income-based repayment plan. Not all will, but she may get lucky.

  79. Gary said,

    I started a website for people like us that have been screwed over by Sallie Mae. Please go there and tell your horror stories. It’s… I hate Sallie Mae.com

  80. Jeffrey – are your loans federal loans or private loans? Federal loans can be discharged if your doctor certifies you 100% disabled. It is more stringent thatn what Social Security requires for disability payments. Have your doctor provide as much information up front as possible – many applications, I’m told, get lost in the shuffle due to repeated requests for info from your doctor. Go here to learn more and download the appropriate documents:
    http://www.ed.gov/offices/OSFAP/DCS/loan.cancellation.discharge.html#Disability

    If your loans are private loans, then it depends upon the terms of your loans, I believe. Read all documents you have very carefully. Generally speaking, they are not insured against disability or even death, and cannot be discharged in a bankruptcy court.

    I’m sorry I have no more advice to offer than to contact your Senators and Representatives and demand that the laws be changed.

  81. Laura,
    As far as I am aware, Sallie Mae does not have a time frame in which to collect the loan. Your daughter signed an MPN (master promissory note) promissing to pay them back, and that gives them the ability to try and get their money back. Furthermore, at the moment student loan debt cannot be discharged in bankruptcy court.

    As your daughter’s loans are in default, she does not have many options. If she can get them out of default, she could consolidate them to get a lower monthly payment.

  82. Jeffrey said,

    Several years ago I graduated from a two year art program, using SallieMae as my source of payment. After graduation I found it difficult to find employment and consequently I joined the Coast Guard. Needless to say, my loan payments were paid on a regular basis. During my time with the Coast Guard, I was assigned to NY following the destruction of the twin towers. I was later diagnosed with PTSD and was given an honorable discharge.
    It continued downhill after that. I had a difficult time staying employed and was in and out of institutions. I was awarded 100% disability. I found it hard to pay a mortgage, support a wife and 2 children and continue paying student loans with the moniey I was receiving from the government. I still owed a few thousand and tried to have the loan forgiven as I could no longer keep a job and found myself divorced and paying child support while trying to support myself. Is it possible to have the remaining balance forgiven because of my 100% disability?

  83. David said,

    Record all incoming calls from Sallie Mae OR send all calls from Sallie Mae directly to voice mail without your phone ever ringing. Get the word out about Google Voice (former GrandCentral.com). It’s a completely free service that give you a permanent telephone number and allows you to send calls you don’t want directly to voice mail and allows you to accept and record incoming calls! It’s perfect for those enslaved to Sallie Mae. You’ll have a complete inbound record and recorded calls to provide your state’s attorney general. Get the word out about Google Voice. For example I was able to record an inbound call from a Sallie Mae agent where I explained in detail my situation and asked that it be documented in detail. The Sallie Mae agent said it would be documented and thanked me for calling. Then after that call I received 5 more inbound calls from Sallie Mae throughout the day! So, because I have a Google Voice telephone number I have the recorded call and the subsequent attempts to harass me all documented and time stamped! If everyone used this free service then we could all start forwarding the recorded calls and inbound harassment attempts to our lawyers! Once again it’s a FREE service. (used to be called grandcentral.com)

  84. Laura Harden said,

    I am commenting for my sister. She took a loan from Sallie Mae in 1994. She married and then had a baby. No time for school. She and her husband tried to stick to the payment plan but could not continue. Needless to say she went into default and life for her to this day is HELL!!!. She is now divorced raising 2 sons alone. She works for a well known discount store and these people(Sallie Mae) are calling her at work!!! Is there not a time limit to collecting this loan. Has any one looked into this?

  85. Joel – if you pay taxes, then YOU have political weight – call your senators and representatives in Congress!

  86. Joel said,

    I started with Sallie Mae seven years ago not knowing of the headache they would be giving me now. On a off for the past four years Sallie Mae has sent letters stating that I need to begin paying back my student loans. Well, I am still in school and what I was told when I started with Sallie Mae that my loans will be deferred until I was done with school. They lied. They want me to start paying back the money now. I can’t work ’cause school takes up all my time. And plus with the economy, my field of work has dried up. They don’t care. A suggestion was given to me by Sallie Mae to sell my blood to make the payment. I was told by a lawyer that I can sue Sallie Mae for the harrassing calls they already know that I can’t pay now. I shouldn’t be stressing over this until I get out of school. This harrassment from Sallie Mae is not beneficial to me. The constant thought of this problem keeps me from concentratings on my studies; which means not getting the best grades, not gettting the best job, and not being able to payoff these !@##$%^&&*(()(*&^%$####@@!!!!! at Sallie Mae. Please somebody with political and/or financial weight, HELP!!!!!!!!!!!!!!!!!!

  87. david said,

    I’m about 20 days late on a private loan that no longer qualifies for forbearance. I’m unemployed and I’ve clearly explained in writing that while I don’t have any money to pay right now I have every intention of resuming payments as soon as I begin working again. They continue to call me a couple of times each day and are now using a telemarketing source so that the incoming call shows a local area code. This company SallieMae is ruthless!

  88. Hi Piggy,

    As a co-signer, your grandfather is also responsible to making sure the loan is paid. A co-signer agrees to help pay the loan if the main borrower is unable to pay, it’s not just a reference. If you go into default, they can garnish your and his wages, and tax rebates. So keep those loans current!

    You say you have 2 student loans – have you consolidated them? You pay off the loan balance over a longer period of time, so you pay less each month, though more in the long run. It’ll help you get by month to month. Right now, the Department of Education is your best bet – their website is:
    http://loanconsolidation.ed.gov/

    Now, if I were your grandfather, I would do a few things. At the next call, record it, and inform them he is recording it – and record it if you can! You are legally able to record calls. Also, ask if the person is calling FROM Sallie Mae, or on BEHALF of Sallie Mae – there’s a big difference. It may be that you’ve been dealing with Sallie Mae directly, but that your grandfather has been called by a collections agency.

    Now, you should call Sallie Mae and ask why this is happening, especially if your loans are current. Also, get documentation from Sallie Mae that your loans are current, and give this to your grandfather. So the next time he gets a phone call, he can say “I have proof in my hands from Sallie Mae that these loans are current, and I can provide you with a photocopy.”

    Unfortunately, in these cases, it seems like you have to prove to them that nothing is wrong.

  89. piggy said,

    I’ve had loans from Stupid Mae for about 3 years now for an artschool I never got to finish attending. I had my grandfather cosign, though his credit wasn’t great, is retired, and on a very limited fixed income. I’ve tried this whole time to stay current with my loans (2fed and 1private)…I’ve gone back to school a few times and was automatically deffered…I’ve had to have forbearance a few times. Late last year, my loan was delinquent, but it has since been current. Today, my online profile witg SM even says that I am current. I will mention I have NEVER been to default!!

    Yet, my grandad is getting calls and letters everyday saying that I am delinquent, in default, etc. They threatened multiple times to take away his home…amongst other things.

    SM has contacted ME not once about this!

    So my question is, can they do anything to him? This whole thing has set my entire family against me…they are scared and so am I!! Can they take away his home? On a loan that is current? Can they do anything else to him?

    Can they do anything to me? I am currently unemployed so I have a hard time even making the most minimum payment. :(

    Thank you in advance for any help or advice. Take care! And I can personally say ill be making my voice heard to lawmakers, etc.

  90. Dear Freaked Out,

    If I were in your shoes, I would ask for any agreement you make with them to be sent to you in writing – whether it is a payment schedule, or anything at all. You’ve had bad experiences, and you want documentation to show them or a lawyer or Congressman should they re-neg on something.

    Loans generally go into default after 90 days of non-payment. Generally, paying less than the required amount won’t make a difference unless you’ve entered a new payment schedule with them.

    As for the lawyer – not sure it will, help, but it’s worth a shot!

    Sallie Mae (or any other lender) can buy a package of loans from a different lender. It happens all the time, the same as with mortgages. There was an inquiry into Sallie Mae, but to the best of my knowledge no formal charges were filed in court against them. Call me cynical, but I doubt much will change.

  91. Sallie Mae Fraud Victim said,

    Dear Fellow Sallie Mae victims,

    I, too, have been a victim of the unscrupulous practices at Sallie Mae.
    A month ago I was transferred on the phone to a Sallie Mae call center in India.
    Through this agent I made my monthly payment.
    The representative said that it “would take a month” for the payment to be reflected in my bank account.
    A few weeks later I checked my online account and the payment was never reflected so they had charged me a late fee totaling $500!!!
    When I called them to see what happened they said that the payment never went through- that I did not have a “Bank Account.”
    This was a BLATANT lie. I gave them the transaction number.
    It turns out that the original person WITHELD my payment so that they could later charge me a 500 dollar late fee!! And when he told me “don’t check on it- it could take up to a month” it was a way for them to throw me off track while they did their illegal shenanigans racking up fake late fees and other fraud.
    I have been on the phone with them for 3 consecutive days trying to sort through the lies. I keep getting the run around about what is going on. The person in India and the person in the US have 2 different stories.
    From now on I will Tape Record their phone calls to try to eliminate the fraud.

  92. Freaking out in Florida said,

    And… which agreement am I asking for in writing? And, how long before loans go into default? If I pay something lower than the monthly payment and they accept the payment, can they still put me into default? Admittedly, I am too naive about this process and need to get educated quickly before the really do me in. Can anyone tell me why our government still allows Sallie Mae to manage (or buy, I guess) loans after they were brought up for an inquiry based on unethical lending and collection practices?

  93. Freaking out in Florida said,

    Thanks for your advice. I can absolutely get an attorney to notarize my cover sheet – and use their letter head if necessary. I have NO issue with paying them back; I just had no idea the economy would crash at the very moment I finished college and re-entered the job market. One question still remains though, is it possible to get my loan out of Sallie mae’s hands? On another website, I read that someone in NY was going to request their loan be transferred back to the Department of Education, so I am wondering if that can be done.

  94. Deb, it sounds like your son may have forged your signature on some loan documents. I’m not certain exactly where the law is regarding burden of proof, but I suspect it’s on them… have you contacted a lawyer?

    Unfortunately for your son, they are legally able to garnish his wages, as your son signed a promissory note to pay them back.

  95. Deb Frank said,

    Any update to this story? Has any further action been taken? We have been receiving harrassing treatment for years now and never new what to do about it…they actually tried to get us to pay for a loan that we never co-signed for, and when we told them to produce a copy of the Promissory Note that had our signatures, they said the burden of proof was on us to show that we didn’t!!! They have called our elderly neighbors looking for my son and asking them to go to our house to see if he still lived there…they have been rude, harrassing, and absolutely INSANE to deal with! Latest tactic is threatening my son with jail, financial ruin, etc., etc. when he works as a part-time waiter and makes about $300/week…he told them he would pay what he could and they said unless he paid them $850/month, they would pursue the legal action…absolutely CRAZY! We don’t know how to get out of this mess because they will not work with us. We really would like to try and refinance everything — does anyone know if this is an option under the new Stimulus Bill?

  96. OK, first thing’s important – make a payment NOW! Do NOT let your loans go into default you’ll regret it for the next 15 years. I highly doubt they’ll retroactively apply your deferment. Sallie Mae isn’t know for being helpful.

    Go ahead and record the calls. Tell them you’re recording it with or without their permission because you’ve been lied to, and that you’ve reported them to the Better Business Bureau. And actually report them to the Better Business Bureau!

    And ask them to fax/mail you the agreement so you have it in writing. ALWAYS get things in writing. Try faxing them again – can you get a notary public or lawyer to witness the fax? Get the notary public/lawyer to sign/notarize/witness the cover sheet with you. It may not help, but it might scare Sallie Mae.

    Contact your representatives/senators in Congress. THey may not be able to offer too much help, but as Sallie Mae is involved in the federal loan business, it’s important that your representatives/senators know that you’re being treated like dirt. If Congressmen don’t know, they can’t change things.

    And yes, they can garnish your wages and tax refunds if you fail to pay for long enough. Remember, you did promise to pay it back.

    So get creative and get other people involved in your fight. You’re not the only person going through this.

  97. Freaking out in Florida said,

    I am sooo confused at this point. I have Federal loans which Sallie Mae apparently bought out – otherwise I have no clue how they got involved in the whole deal since I actually chose to use Regions as my lender? I have been out of school for 6 mos but, as a person with a teaching degree in a time of sever budget cuts, finding a permanent teaching job is impossible. I am permanent subbing until June but my husband sells real-estate (ha ha) and is in college now so finacially, we are strapped. I applied for deferrment based on economic hardship, but I have been given the run-around. Every time I fax the supporting financial info I receive a positive confirmation on my end but they say it was not received meanwhile my account is steadily becoming more delinquent. This has been going on for almost 2 months. Not only that, but apparently all call reps are in India now so i cannot productively communicate with anyone. I have spoken with supervisors who give me their fax number and promise to push my app through and call me back but, needless to say, no one ever does and my deferrment app is still pending. The first time I spoke with a supervisor, I was told that they would retro-act my deferrment to cover any past due amounts. Last time I spoke with a supervisor, I told him I was recording the call and he said I could not but never ended the call. So, my questions are: What should I do about my deferrment application? Since my loans are Federal loans, can I have my account removed from Sallie Mae? Hypothetically speaking, would it be okay to record a business call without permission? Will they withhold my Fedeal tax Refund for late payments? Will they retro-act my deferrment until the first day payment was due, Dec. 27th, 2009?

  98. Obambi.com said,

    The above was written by a visitor & reader of our website:

    We thought it would be good to re-post it on your blog.

  99. Obambi.com said,

    Even if you have a loan with sallie mae, and they call you

    REPORT THE PHONE NUMBER and TIME at

    https://www.donotcall.gov/complaint/complaintcheck.aspx

    It will show harrassment and FTC will investigate

    DONT BE LAZY, DO THIS AFTER EVERY CALL. NO MATTER WHAT.
    OR DO IT ONCE A DAY AT END OF THE DAY

    Calls will slowly drop. as they get notified by FTC.
    —————————————

    2nd. GET OOMA , at ooma.com, they have a system that helps you control unwanted calls.

    ————————————

    3rd, WRITE LETTERS TO ATTORNEY GENERALS in Nebraska, New York California .

    Complain

    WRITE LETTERS TO Edward Kennedy office, yes , do it.

    WRITE LETTERS to your SENATOR, DO IT!

    ——————————-

    4th, SEND A CERTIFIED LETTER TO SALLIE MAE, telling them they are harrassing you with the robotic phone calls.

    Make itofficial in case you go to court with them. DO NOT admit any loan.

    ——————-

    LASTLY

    WHEN THEY CALL YOU, TELL THEM YOU MAY OR MAY NOT RECORD THIS PHONE CONVERSATION FOR QUALITY PURPOSES

    if they call you, you have the right to record.

    THIS IS WHAT THEY WILL TELL YOU

    “I am not giving you permission to record me.”

    Say

    I have a right to record this conversation and if you refuse to be recorded, then I cannot continue this phone conversation.

    They will probably already hang out at this point, if not, tell them you want everything through WRITING.

    Always state you are going to record their phone conversation.

    They dont like it and are trained not to be in calls where they are recorded.

    ———————

    SUE in Small Claims court for up to $5,000 for harrassment.

    Whole small claims deal takes about $150-$200, they usually wont show up.

    You will get a judgement if u show evidence and paper records of their harrassement.

    Collect the judgement from Sallie Mae.

    SUE SUE SUE, seriously.

    ————————————-

    If you have no CO-SIGNERS, they cannot call anyone else about the loan.

    If they call your parents, send a certified letter from parents and theirnumber, teling them to CEASE AND DESIST CALLING as I have no business with that loan.

    —————————————–

    DONT GIVE IN

    DONT GIVE UP

    THERE IS NO DEBT IN HEAVEN AND GOD WILL ONE DAY have a talk with those people from Sallie Mae on your behalf. Im sure.

    We are here on earth for 75 years lets say. Dont let sallie mae run your life.

    Really.

  100. Sandy said,

    If anyone can help me please do.In 1979 yes you are reading that right 1979.I applied to a nursing school and applied for a student loan,within a few weeks I withdrew as I heard from several nurses that this school was not a very good school I withdrew before classes started signed stating that I was withdrawing my application for the school and student loan,I even received a letter from the lender thanking me for my interest in the student loan and if they can be of any help in the future let them know.Did not hear another word untill 1997 when I bought a house,and The Department of Ed sends me a letter stating I owe on a student loan.I have been fighting this since then.I can’t get any info even though I have requested all information all they send me is a name of a school I have never heard of and that has been out of buisness since 1994 and who has destroyed any and all records.Pioneer Credit Recovery has now garnessed my SSI check to the tune of $160.00 and even stated that they will take what ever the can out of my checking account as once it is in my account it is no longer considered SSI [they can only garness about 15% }before it is deposited in to your bank account after that they can come back and do what ever they like.Great nice little scam they have going,I don’t have the papers that I signed all those years ago,who keeps records from 30 years ago anyway and by the way the nursing school that I applyed to is out of buisness and has been since late 1979/1980 I believe Iam all for a class action lawsuit as what they are doing is wrong, just go to StudentLoan Justice.Org and read all the horror stories,please help me and all the others who find themselves in the same boat I am in.I also don’t believe that they will discharge this so called loan because Iam disabled,there is know way Iam allowing some collection agency to get thier hand on all my medical records.Good luck to everyone and keep fighting this.

  101. Gina said,

    I have a few student loans with Sallie Mae, which was initally applied through Nellie Mae. I was paying $388.43 a month and after three years I received a letter saying I could apply to have my co-signer released. I emailed customer service to be sure I actually qualified before requesting the application, which I was told I was qualified. The qualifications were 24 consecutive payments that were not late. So I applied and after a few weeks, I received a rejection letter saying I did not qualify because I was paying interest first loan. None of my payments have ever been late, no late fees, etc. I asked how could this be and was informed that had I been on a Standard Payment plan, I would have been approved. Now, why couldn’t they have told me that when I was inquiring about the co-signer release application?!
    Not only that, but I had noticed my balance on my student loan was increasing instead of DECREASING!!
    In September 2008, I requested to be on the Standard Payment plan ($552.41 monthly) so I could begin to get my co-signer off my loan and pay down my balance on the loans. I was told this would be in effect October 2008…I also signed up for automatic debit so they could not ever claim any payment to be late. October came and the payment was still $388.43, so I called again to complain and requested the payment plan be changed to Standard. I was assured by the customer service rep. that this would be taken care of and the next month’s payment would reflect the update. Guess what? NOT! Each month I called to ask what the hell was going on and why this request was so hard to understand and implement. This has been going on for three months. Each month, the monthly payment on the Standard Payment plan increased from September 2008: $552.41 to December 2008: $556.41.
    Yesterday, January 2, 2009, I called and as soon as a customer service rep. answered I immediately requested to speak to a Supervisor. I went over the situation I had been facing and he assured me that this would be taken care of. I hammered in his head the importance of me getting my co-signer off the loan and he promised that I would be able to request the co-signer release application in 21 months instead of 24 months because their records showed I had not been delivered what was promised. He also informed me the Standard Payment plan monthly payment was $558.82. I made a point of telling him of the change and he said “Who quoted you the lesser amount?” He did not have an answer to why the rates I had been quoted were given to me.
    I have had nothing but a shell game handed to me when it comes to dealing with Sallie Mae and cannot wait to see the day when this fraudulent institution fails! There will be a cold day in hell when Sallie Mae steals my parents home from them!!! I would like to know if there is a class action lawsuit filed against them, because I want to join the suit to sue these crooks!

  102. HI Avril,

    I’m so glad you posted what you learned, as I wasn’t sure which rehab program you were referring to.

    A reminder to all my readers – DO NOT let your loans go into default! It will remain on your credit report for nearly 10 years.

    If you’re worried about your loan payments, contact your loan company. DO NOT just stop paying – that will get you nowhere and they’ll simply garnish your wages. Call and ask about deferment, forbearance and other repayment options for financial hardship. If you contact them BEFORE you stop paying and make a good effort to keep paying, they will most likely respond.

  103. Avril said,

    OK, I found my answer and thought I would share, I spoke the RI Student Loan Authority and was advised that this does not apply to just consolidated loans. The lenders are being very selective on what defaulted loans they will take back due to the current economic situation in the world, and consolidated loans are not on top of the list. As a result, not all loans will be accepted into the rehab program. Even though we are paying our $250 per month, this does not mean that a lender will pick up our loans therefore the loan will remain in default and delinquent status on the credit report, that is the down side, the up side is that so as long as we make the payments, they will not seek further collection action as wage garnishment & freezing bank account etc..in time all we can hope for is that the economy improves but in the mean time, we are just making the payments, so that we don’t get into any further trouble. We were lucky and just missed the cutoff and they are allowing us to make payments (of course) but we are not in the rehab program, but at least further collection actions will not be sought, I don’t know what this means for people that are currently trying to enter the rehab program, good luck to you all, wish the government could do something for us, they are “lending” money all over to the big companies, but won’t help us small people, welcome to the USA and the American dream…huh

  104. Avril said,

    Does anyone know if the government passed a law recently that a previously consolidated loan cannot enter the rehab program??

  105. donellgraham said,

    In 2006 I got a career traning loan from Salle Mae. It was for automotive resturation. Over the last two years the auto industry is having problems. I can not find work. I am now behind and Salle Mae will not give me a foreberance. the call me every hour, and now a lawyer’s office is calling me. Is there any thing I can do?

  106. C – I agree, it’s awful. And you probably read many similar stories on this thread.

    Unfortunately, you have no proof so there’s nothing that an AG or lawyer can work with.

    However – have you considered reporting Sallie Mae to the Better Business Bureau? They’re no attorney general, but the reputation of a company at the BBB is something Sallie Mae should pay attention to!

  107. C. Adams said,

    I have a Sallie Mae loan and have been paying on-time since the loan came out of deferment in October 2007. It was a loan with 8.25% rate and due to on-time payments, I received rate drops. It’s down to 7%. My payment is taken out automatically.

    Well, on Oct 9th I called to inquire about why if capitalized interest now shows paid (on one of my smaller loans) then where is my payment going since the prinicipal does not appear to have gone down. I never got an answer and just gave up in frustration when Bangladesh Bob, who I can barely understand btw, just danced me in circles. Then on Nov 11, I was checking on something in my account, just by chance, and noticed that my payment didn’t go through. I discovered that SallieMae had placed my account in forbearance without my permission and my next payment wasn’t due until Nov 2009 and they wiped out my 7% interest and placed it back to 8.25%!!

    So, I called up Bangladesh Bob again and of course, couldn’t help so I asked for the superWiser, as Bob called him. Got no help there and got yet another superWiser who told me that the signatures MATCHED on the forbearance document. I asked it to be faxed to me right at that moment and of course, they couldn’t but said they’d mail it to me. I carried on with these idiots for two hours before arriving at that end. They told me it would take 14 days to get the paper and couldn’t guarantee that the rate would be returned to 7%. The next day, the rate was reinstated.

    On Nov 19, I received the document. The signature is CLEARLY forged and the portion at the top of the document, to be filled out by the applicant, was not filled in at all No name, address or account number. Obviously, they pulled out a blank and someone there signed it.

    Is this not forgery? I cannot find any way to contact someone higher up at Sallie Mae. Every door to attempting to make contact for resolution has been closed. A true crooked company. Also, all evidence of their little forbearance trick has been taken off of my account. Unfortunately, I do not possess the criminal mind that Sallie Mae has or I would have thought to take a screen shot of the transaction in my account when I discovered it.

    Does anyone know who I can contact? I have already previously contacted news, AG, FTC when it first occurred and as usual, no response.

    This is really unconscionable.

  108. Shibumi2 said,

    Ok. Show of hands, who read my post above? Very well, we shall go over it again, this time with a bit more background in the practices of Sallie Mae.
    They make a LOT of money every year. How, one would wonder? Student loan servicing should not be that lucrative, eh? Well, there is a little thing called debt instruments. Here’s the blunt skippy: when you signed the promissary note that authorized your loan, no money was actually “lent” by anyone. Instead, a series of computerized entries were credited to your account. NO ONE ever gave you any money. The note that you signed then became, in essence, a debt instrument (think of it as a big Federal Reserve Note for the total of the loan). This was then IMMEDIATELY “sold” by Sallie Mae (or whomever you signed the note over to). So, they immediately got capital, without having to risk anything. Now, the loan is due, they are expecting you to pay them, when they have already made money by selling the note to someone else. So, they get paid twice, without having to lay down any money of their own. Sound fair? If you did indeed sign a contract, then yes, you are responsible for it. But only if they can come up with the ORIGINAL, signed document. Try photocopying a $100 bill and trying to pay for something with it. That is the same thing as them saying a copy of the loan document is legal.
    So, the deal is, if they threaten you with default (they are required to send you a dunning notice in writing), respond with a dispute letter IN WRITING (do NOT conduct any business by phone, it is not legally binding, and they can trap you and harrass you into doing things not in your best interests). Make sure it is within 30 days of their dunning letter, and let them know you are disputing all or part of the alleged debt until they can validate it (the only way is by producing the original signed document). Decline to validate a copy of your signature (since you are the only one that can do so, they have no case unless you give it to them). A copy of your signature could have been made by anyone with a scanner, so this is a completely valid privacy concern. I will repeat AGAIN, do not conduct any of this business over the phone. Tell them you will only respond to written, signed correspondence, and only send your letters via certified or registered mail, with a signature receipt. This is a very straightforward and legal method. Don’t ask lawyers for advice, they get paid no matter who wins, and will usually advise you to settle, because they have more important things to do. DON’T sign anything new, because then they have a new contract, and you are SOL. AGAIN google the Fair Credit and Debt Collection Act. The illegal bailout and TARP should not have affected it too much. We hope. Good luck.

    Shibumi2

  109. jon chappelle said,

    Deftek u are most like one of the [expletive removed] heads who work for sallie mae or ur some rich [expletive removed] who has every thing givin to u. so dont go around telling us not to complain. what sallie mae is doing is wrong. putting people so far into det that they can never pay it off. [inappropriate comment removed]
    post edited for inappropriate language 9/29

  110. Something similar happened to me once, but I only got two calls – apparently the person who previously had my phone number was in default or something. I told them to please check with the phone company and thy will see that this number is no longer in that person’s name.

    In your case, as you were duped by a friend, it may take more than that.It is illegal to harass someone over the phone or use abusive tactics. I can’t find the article about it at the moment – google around a bit about harassing phone calls. You have even more ammo against them as you are not their intended target and are innocent in this matter!

  111. Lorie said,

    I don’t have a loan with Sallie Mae but someone I knew at one time did. They gave my phone number to Sallie Mae and now they will not stop calling my phone. I’ve told them for months that this person does not live here and I know no way of getting in touch with him. They’ve said many times that they would remove my number from their files yet they still call several times a day. 14 times yesterday and 11 times today. Thank goodness I have dial up internet or they most likely would have called more today. Once I sign on, they can’t get through but they still leave messages on my voice mail. Any ideas how I can stop this harassment? I’ll go the legal route if I need to. They either get very rude with me or they hang up on me. I don’t need this harassment. Help!

  112. Kimberly Pothoff said,

    I too have been caught in the Sallie Mae trap. I applied and was accepted at a career college by the name of Gibbs and was told that my Federal loans would not be enough to pay for my schooling. The school had a business deal with Sallie Mae and only offered me a private loan choice that was unbelievably high in interest because my credit was already poor from past schooling and personal debts. At the time, I didn’t understand that I had other options and they made me feel it was the only choice.

    I signed and it was the stupidest mistake I’ve ever made. Not only has the school gone under (they were trying to sell it off and couldn’t, now they’ve gone bankrupt), but I ended up having to quit school because it was becoming too financially hard for me to balance class and a job….then I was laid off and have been for four months now, enough time for the calls to start about defaulting on my loan.

    I tried explaining to the reps that I am unemployed and other people are helping me out, just barely paying my bills. I’m also receiving $100 a week from Unemployment Insurance. One rep even suggested to me that paying my student loan back was more important than buying food or keeping the lights on in my house.

    They said that they will not stop calling and do so eight to ten times per day. None of the reps that I speak to seem to have any record that I spoke to them other than to say that I’ve flat out refused to pay….which is not the case. I cannot pay because I have no money to pay them and wish to set up a payment plan when I am back to work. However, they told me that this will be taken to a court of law, my wages can be docked, they can take my tax return and I could go to jail….etc.

    I can’t believe the people there are so damned heartless!

    The economy is in the toilet and me with it yet they won’t be satisfied until they’ve rifled through my pockets and thrown me in jail?

    Maybe I will start paying them back. I’ll drop a penny in the mailbox as payment.

    Then they can’t say that I’m not making an effort in these trying times.

  113. Laurie, you need a lot more help than I can provide. If you have copies of the original paperwork, you may have ammo for a lawsuit regarding mis-representation. I don’t know for certain, as I’m not a lawyer.

    Again, I’m not a lawyer but if you have proof they cashed the check but did not apply the balance to your account and instead let your account go into default, then if I were in your shoes I would contact a lawyer to see if this is legal. To me it sounds down-right scandalous but I’m not certain where the law stands regarding these matters.

  114. LaurieD said,

    Ok, maybe I can get an answer here.

    My daughter went out of state to College (to the aforementioned horridly loosely defined college, Westwood College of Technology in Westwood, IL). When I spoke to the college’s repr over the phone numerous times and several HOURS trying to decide if we / daughter could handle the cost of the college (this was in the spring / summer of 200–). I had it all figured that for the 16 month degree she was going for it would cost approximately $4,000 a semester including her PELL grant. We had at the time four other children still at home, one in high school the others younger. My daughter, thinking it through and after talking to repr herelft, with the area she was going into thought it was very doable. Loans for school would leave her after 16 months with a college debt of approx. $12,000. The school promised several things, including affordable housing and help in finding a job. Everything seemed to be good. We did research, I talked to people (sound via the net, BIG MISTAKE) on the school and it looked good. So we moved my daughter out there.

    We filled out the FAFSA and such via internet and were approved for the PELL and any possible federal loan programs IF necessary.

    When our daughter had been in school but 2 months she called in a panic, stating that they were going to kick her out because the tuition had gone up and the loan originally approved BY US (and SAllie mae, for which we had NO CHOICE as Westwood ONLY uses SM) was not enough. They (westwood) would be faxing a paper for us to sign (hubby signed all these, as I have NO credit) to get more funds. We really weren’t given a choice, it was NOW. The down fall being, our daughter would be kicked out of school, her apartment (which was through the college though not really, who other story) and left to the streets. She had NOT been helped to find a job and was still jobless, I was paying her rent via credit card to keep her with a roof over her head. We were NOT ever sent confirmation regarding 1) HOW MUCH the loans were for, (2) paperwork showing these loans (3) Dispesment dates and such.

    My daughter was told BY WESTWOOD that she could not get her own loans (which three kids later we know to be WRONG, but at the time unfortunately we trusted the school, BIG MISTAKE!) so the only way she could go through school was wiht PARENT PLUS loans. We were taken, but by whom? Sallie Mae? I feel was 80% responsible in the fact that THEY never sent us paper work, verification that we wanted to sign things etc. Now if we are a day or two late in paying (due to pay day changes, we get paid on a certain day of the week, NOT certain date) we get phone calls. Now this is what gets me, I am NOT allowed to discuss with SM any of this situation (of which I know and understand more than my husband due to my accounting background) because MY NAME is not on the loans. So, do they call once and after I tell them he is not at home due to work hours, give them the HOURS he works and approximate time he will be home, NOOO they call then and repeatedly about every 25-45 minutes for the rest of the day. And until THEY decide to post our payment (which this month they are now claiming was not made and that we are going into default, on an account that has a whopping $50 remaining balance AND is NOT even late, and paid and they have cashed the check).

    HELP! How can we go back and PROVE that we really are behind the 8-ball so to speak regarding everything owed (over $20,000 MORE than what we owe on our house) . Do we need to be thinking of suing or arguing the amount due SM and going after falsifying papers via Westwood?

    I really need help. We are paying more than we can afford in these loans and feel like we have been screwed!

    Thanks!

  115. Ben – have you tried asking about deferment or forbearance? Or are your loans already in default?

    If you’re in default, then that severely limits your options.
    Check out this article from the federal Department of Education – it may help. It applies to Federal loans only, unfortunately. Private loans are another beast entirely.

    http://www.ed.gov/offices/OSFAP/DirectLoan/avoid.html

  116. If you’re being harassed and threatened, then you can report them. Ask for the caller’s name and a phone # at which she can be reached, then notify that you are reporting her for harassment. I can’t find the legal notice offhand, but google around for harassment and debt collection – you’ll find it.

    Make sure you have that and review the details before reporting her! I’m working on memory here and the details are slightly fuzzy.

    One question – are these government-backed or private loans? If they are government loans, you *may* be able to consolidate, though your history of default is definitely against you. Perhaps you could qualify for forbearance or deferment? Beyond that, I’m really not qualified to offer advice – I’m not a financial adviser. I don’t know of any programs to help, sorry.

    This article may help:

    http://www.ed.gov/offices/OSFAP/DirectLoan/avoid.html

  117. traveller0112 said,

    It’s not paying it back, it’s that I don’t make enough right now to pay what they want and pay for utilities and gas for the car and food. I don’t have other credit to pay, not talking about unnecessary items/bills. I cant pay the amount they want in a week and a half–I will not have it & when I start to mention the Fair Credit and Debt Collection Act, she starts yelling at me. A lawyer friend thinks they may have already stepped over the line. He wants me to question them on this, but I seem to be out of time.

  118. Ben said,

    Please help….

    I co-signed a loan application on behalf of my wife so that she could do her associates degree (which she completed).

    We are being harassed by Sallie Mae on a daily basis, in the form of automated messages left on my cellphone and at my wife’s job (I don’t know how they got hold of that number). We have both tried speaking to them, but they will not co-operate. They tell us that they need us to pay a large sum of money before they’ll consider anything, which we cannot afford due to my wife’s mother being ill.

    How can we get Sallie Mae off our backs? We simply cannot afford to pay them over $500 a month in student loans.

    Please help.

    • Ben – it is illegal for Sallie Mae to call cell phones to collect, unless you gave them express permission to do so. If you would like to speak with an attorney about this, please give me a call at 415-956-1000. Barry Himmelstein.

  119. ruz4444 said,

    From the bottom of my heart thank you…… I will sleep a lot better.
    ruz4444/I.L.

  120. To ruz4444 / I.L. – they’re all gone.

  121. traveller0112 –
    I don’t know the exact legalities of garnishing wages, but I do know that Sallie Mae is legally allowed to garnish wages, generally speaking. You signed a contract agreeing to pay them back and now you’ve reneged on that contract. They have a legal right to recover their losses.

    If you’re wary about the agreement, take that agreement to a lawyer. There are public service branches out there that will help you with small things for a nominal fee. I know money is tight for you right now, but if you’re that worried, it might be a good move.

    I’m not certified to offer financial advice, and I don’t know the details of the contract, so I can’t advise you on whether to sign or not.

  122. ruz4444
    If you’re in as much trouble as you imply, perhaps you should contact a financial professional?

  123. traveller0112 said,

    I am just about to the gallows but if someone can help, I’d appreciate it. I have been in default for a couple years. I have not been employed more than part-time since then. Right now, I take in about $150/week. Can wages that low be garnished. They’ve talked me into rehab program…which they first sent papers to be signed and faxed back at a higher rate than what they first said. They did catch that and resend papers, but I am wondering if they can even take any action making what I do at work. Should I hold off signing the agreement or go ahead…despite the harassing tone when I told the woman at the other end of the line to stop calling at work. She started yelling about she could hang up right then and send it into garnishment since she was merely doing me a favor…. HELP PLEASE.

  124. lovesponge123 said,

    I feel that higher education is truly for the really rich. I don’t consider myself poor and I’m not rich, so I must be middle class. I feel like because we are not super rich that we have been discriminated against because we don’t earn 6 figures. Because we are not poverty we don’t qualify for any grants either.

  125. lovesponge123 said,

    This all sounds so scary to me. I am about to co-sign loan papers ($20,000) for my daughter to attend a career education.
    Sallie has been the worst people I’ve ever had to deal with and I haven’t even signed the papers yet.
    They told me in the beginning (b4 we submitted our paper work and got our hopes up) that interest rates are usually around 5%…What a crock of lies.
    I am a business owner and I also work a full time job. My business grosses almost a half million a year but the net doesn’t look all that great. I own a $750,000 home with $500,000 in equity.
    I make close to $30,000 in my day time job. We submitted the papers with my daughter as the borrower and I as the cosigner. Well, they denied me. So, they deleted me from the acct and we added my husband as a cosigner. The approval came back right away, but with a 15.5 interest rate. So, I’m like wtf? So, we tried putting me back on as a 2nd cosigner and the interest rate went even higher.
    I don’t understand any of this.
    I am looking for anyone with any information about Sallie Mae and if there are any alternatives to Sallie Mae.

  126. m said,

    This is such a sad state of affairs in the realm of higher education…

    Suze Orman basically has it right… Don’t buy an education that you can’t afford… Don’t take out exorbiant loans as most of us posting here have… Only go to a school you can afford to pay in cash… Or is less than $10,000 for the full degree, be it 2 or 4 year… This is part of the business of poverty along with credit cards, overpriced car loans, home mortgages and similar lines of credit…. This will keep you from buying a home more than anything… And people who say that a college education will help you make more money don’t really know… Only if it is in the sciences, computers or something similar… Every other degree is essentially useless… Sadly… I have a Bachelor of Fine Arts that I didn’t really need to do what I did before I had the degree and what I do now in the entertainment industry… A very expensive lesson… Take your basic classes at a community college with low cost per credit and transfer them…. Trust me!!!… m…

  127. BobH said,

    I am so sad to see all of these issues regarding Sallie Mae.

    My wife and I owe around 200K in student loans, 120K to Sallie Mae.

    My wife has about ~20 some thousand in Signature Loans at SM.

    We received a letter saying that 2,600 of interest was going to be capitalized after my wife graduated. I paid 2000 dollars of it. Sallie Mae did not even put the payment towards that, somehow half of it paid down the principal of the low interest loans. OF COURSE IN THEIR FAVOR. We also had to pay a $600 dollar insurance premium for having to wrap in the capitalized interest. They said it was because a disclosure in the promissory note said that they could do so. I told them I wanted them to send me the note. There was no disclosure in what they sent me, and at that point I gave up.

    We have continually tried to pay significant portions on our loans down on the high interest loans. We do what they said to do.. Send the payment with a letter saying to apply it only to Loan 10 or whatever. We did that.

    Here is the problem… Now Loan 10’s due date is now in the future. We make regular payments on the *billing group*. $115 dollars is supposed to go to loan 10. Now only 26 dollars goes to loan 10. $76 dollars or so is supposed to go to the interest. Well, if only 26 dollars is going towards interest, and 0 goes to principal, the remaining 90 bucks of my payment gets put towards the rest of the billing group…the biggest portion going to the low interest loans.

    They have found a way to ensure that must borrowers do not pay ahead. I refused. My wife and I have very good income…and we intend to have our debt paid back in 10 years or so. I am TIRED fighting them after every payment.

    I am a state banking/credit union regulator. Unfortunately Sallie Mae is not in our jurisdiction obviously. I want to know who is their regulator. They have got to be regulated by some government entity.

    Because the payment histories do not make any sense….I have had another examiners/auditors review it… they do not make any bit of sense. I am about to send a letter to Sallie Mae requesting that they send me every note, every payment history in detail. I am positive that they have royally screwed up my accounts. In the past 4 months, they have let interest accrue on Loan 10 because it is paid ahead. My regular payments are not being applied to pay the loan as agreed. This has got to be illegal.

    Good luck to everyone.

  128. Cathy – I’m rather speechless… except to say that what you’ve reported scares the s**t out of me!! That’s awful! I can’t believe they’re not fixing it, that’s a breech of customer data…

  129. Cathy said,

    There’s been a breach of security at Sallie Mae, and noone cares. Maybe the guy, whose loan information is appearing on my account with all his personal information, would care.

    If you manage your loans on-line, you may want to check your accounts. Sallie Mae had a bit of a mix up in giving access to loan information to co-signers. Problem is, they gave access rites to the wrong people.

    Many, many calls to SM to get the private information from this person I don’t know off my account, but no luck yet. Only response, “they’ll research it. They thought they caught all the mistakes.” Can you believe that?

  130. Concerned Mom said,

    Re: Deftek,

    Not everyone who has posted to this listing is in default. And according to my own research, Sallie Mae has contacted people regarding default when in fact they are not in default. Sallie Mae’s repayment system is set up so that you are consistently paying more interest than principal. You are not allowed to send in a principal payment (you can, but all it does is move your monthly payment forward), so that Sallie Mae is getting interest charges above and beyond what was originally quoted to a student in the repayment plan. If you look at YOUR statements, you will see that Sallie Mae repayment is a “Rules of 78″ loan with an evil twist: the interest is consistently paid first, with little or no money paid to principle, so that in effect, you could be paying them back forever. Even regular banks for the most part, don’t use the “rules of 78″ method any more and instead, use simple interest plans, where interest charges are made based on the unpaid principle balance and structure payments so that a portion of each payment is sent to principle.

    The practice of not allowing principle payments borders on a discriminatory banking practice. And the law not allowing you to refinance your Sallie Mae loan with another lender should indeed be changed. I”m watching my daughter struggle to pay down her loan (which is consistently current) and not get anywhere because of these underhanded loan practices.

  131. Shibumi2 said,

    Ok, the first thing you need to do is google the Fair Credit and Debt Collection Act. It is there to protect you. AS SOON as you receive a dunning notice, you need to immediately send a letter disputing the debt. Under the FCDCA, you have 30 days from when you receive the dunning letter to respond to them. As long as the debt is being disputed, they cannot: A)Harass you. B)Damage your credit report. C)Add fees. They then need to PROVE you owe the debt. That means original note. Anything else, and it is not a legitimate debt. If they try to send you a copy, request the ORIGINAL. If they try to get you to validate your signature on the copy, DECLINE to validate without the original. It is ILLEGAL for anyone but yourself to validate a signature, and without the original, they could have used any means to forge or copy your signature. The original is the only way.

    Send all correspondence certified return receipt. Phone calls are worthless, decline to speak to anyone over the phone. Request your correspondence from the collector to be signed, otherwise it has no weight. You need to remember, they will LIE CHEAT and HARASS you. Make THEM prove you owe it. DON’T validate your signature unless it is the original. That is the key.

    Remember, they sell your loan as a collateralized debt instrument, and have probably already been paid for it (for pennies on the dollar). Force them to negotiate with YOU for a deal like that. Hope this helps some of the people here.

    Shibumi

  132. Perry H. said,

    What I would like to know is how in the hell did Sallie Mae private loans receive the same status as federally back student loans in the 2005 bankruptcy reforms making them non-dischargeable????

    ok – scratch that – I know how. But why hasn’t something been done about it?

    They don’t allow deferrements, forebearance ect on their private loans….even if you lose your job. (Where gov’t backed loans do allow). They don’t act like student loans, rather more like cc companies. If you pay extra to try to pay down the loan, their practice is to ‘extend out’ payment due dates, and lower the min. balance due. It’s as if when you pay extra, they are applying it to future payments rather than the principle balance. I’ve asked them to make a note in my account never to extend out payment due dates or lower the min. due and all I got back was a bs letter that made no sense. I’m in the process of collecting documentation to go to my congressmen with because their practices are insane and should be illegal. And they sure as hell shouldn’t have received protection under the 2005 bk reform act – not with their practices.

    I’ve had my loan since 2002, making regular payments (and sometimes more) and my principle has only gone down a little over $1000. That is complete bullshit! At this point, they’ve made more off of me than the original note was for. So for the previous poster before me, screw you. I’m current too. But I’m just an average person with an average job trying to pay off this loan. I don’t have chunks of 5k to plop down on this loan to pay it off. And I’m willing to bet – you don’t either. However I do expect this lendor to play fair and put anything extra I can pay towards the principle and not towards future payments!…especially when I request this in writing to them.

  133. Deftek said,

    I am shocked at some of you… dont get me wrong, I think overly aggressive tactics is poor customer service but for all of you people who are complaining: PAY OFF YOUR LOANS. I mean come on… did u think this was free money they are just handing out? And for you old people who cosigned for deadbeat nephews/grandchildred: do you know what a cosigner is? Its someone who GUARANTEES a loan if the person defaults. Of course u cant get out of it.. just the fact that you are trying shows that you don’t have the conviction to follow through on something you (legally) promised to do. I mean really people… you can complain to eachother about how much it sucks to pay bills but that still doesn’t mean that its the lendor’s fault that u cant plan accurately. You should be ecstatic that someone is even willing to lend out the capital. By the way, I have a sallie mae loan and am current. For some reason they don’t call and harass me… i wonder why…

  134. Have you tried calling your lender and asking about a graduated repayment plan? Many lenders offer them, and they’d rather have you paying something then nothing, so they have an incentive to get you into a structured program.

    With a graduated repayment plan you pay less than the full monthly payment at first, to sort of help you get back on your feet and get your loans out of default (as that will affect your credit for the next 10 years). After the specified time period ends, the payments go up. Some plans have many steps, some just 2 – the starting, lower payment and the regular payment.

    If you do go into a graduated repayment plan, be sure to get the amount of the largest payment, and in the meantime make provisions so that you’ll be able to afford it!

  135. Leigh said,

    Myself and my 2 sons have fallen into the same pit. How in the world do we get a handle on it? Does anybody know what we do now? We know we owe but… My youngest son’s note payment is to be $1000 monthly Sallie Mae whoes steadily been sending junk mail to get him to consolidate won’t touch him now.
    I just don’t know what to do

  136. pat duvall said,

    I am also a Sallie Mae hostage. I took out loans when I was going for my nursing degree and raising 3 children on my own. I graduated in 1995. I did not have my loans originally through Sallie Mae. They bought my loan. Since graduation I have never been able to afford the payments. Nursing didn’t pay enough to compensate for the loan payments. Due to deferments which have made my payment increase I am still in the same boat and unable to afford the payments. Around and around I go and never get any where. I have asked them multiple times what I can do and there is nothing I can do according to them. They have called my friends and also my sister who I put as contacts on my loan papers. I went to college to make my life better but this has not happened. Going to college isn’t all it turned out to be. It really sucks. I feel like I really f’d up. I guess when I receive my social security they will want this too. I know the next step is taking my tax returns and my pay. I feel like I should put my checking account in my boyfriend’s name so they don’t get into that. It is on my mind all the time. I want to pay on the loan, but I will pay til I die because the amount I can afford won’t help at all so I just don’t pay anything. Like I said I am just going around and around.

    • Shawn said,

      PLEASE!!! contact me!! I am a nurse who has your same story!! CALL ME ASAP!!! Shawn 810-908-3825

  137. rachel said,

    Ok I have huge issues with Sallie Mae. They are scammers and nobody should go thru them for loans. I attend westwood college (another bad choice) and had to take out private loans through sallie mae who my school recommended. I was denied from sallie mae due to the fact that I didnt have enough credit. My mother cosigned for me and had good credit. I am a junior now, 1 and 1/2 years into my degree, and 35,000 in loans. Westwood college told me i needed to apply for another 7 month loan. I did and my mom was denied!! Nothing on her credit changed as we did research and I called them 4 times to try and figure out what the hell is going on. They gave me 4 different answers and now westwood college is blocking my classes next week unless I sign some frigain promissary note that will allow me to take out a loan thru the school for 18%!! Total fraud and I am reporting sallie mae to the BBB. There is no reason why my mother shouldntv been approved when they have alreayd approved her for 35,000.

  138. Sarah said,

    Can anyone give me any advice on my situation. I took about 20k school loan to finish my BSc in computer science, I graduated in 2002, unfortuntely, I couldn’t find a job, to earn enough to make payment on my school loan. Economy got so worsed that it’s hard to find any job now.
    Now, about few years ago, I got married and I have a little girl. I am not working at all, I became a housewife. My husband is supporting me.
    Is there any way they could make my husband pay for my loan now. Or will they take his asset away from him because of my situation. He bought a condo before, I was married. I am totally relying under my husband’s name.

    By the way, I am getting calls from Sallie Mae, I dont answer there phone at all. Sallie Mae and online Unversity played nice game with me, when I took one semester with University of Phoenix to complete my MBA. Education is not worth it in USA by taking loans from school. It’s fraud, This country is putting there head in hole, too many frauds, around here. I don’t see any future in USA. I will be making my moving plans in few years.

    Any advice would be helpful.

  139. THEBATMANZORRO said,

    You guys need to launch an agressive strategic plan of action:
    Write your Congressmen & Women by email and/or letters of complaint.
    Let them know your troubles. Don’t let up until you get an acceptable response & changes to the system.
    Fax & call them by phone.
    Write/Call/Fax/Email your State Governer.
    Write/Fax/Call/Email your State Legislators, Senators & Assemblyperson.
    Write/Fax/Call/Email your local Mayor & Councilmen.
    Write/Fax/Call/Email your Unions.
    Write/Fax/Call/Email your University & College Professors and Aides – some of them are in the same boat!!!
    Do so the same with the BBB’s wherever you reside.
    Write/Fax/Call/Email & Report them to the Chambers of Commerce.
    Complain with the Professional Associations and Organizations whom these collectors are members of.
    Write/Fax/Call/Email the President and Secretary of Education.
    Write/Fax/Call/Email/ Attorney General.
    Write/Fax/Call/Email/ your local District Attorney.
    File private lawsuits with your private attorney for illegal debt collection practices & harassments.
    Fill the Courts with legal lawsuits against these practices.
    Write/Fax/Call/Email ABC, CBS, NBC, local media, newspapers, periodicals, FoxNews, 20-20, 60 Minutes, 48 Hours, Larry King, Oprah Winfrey, etc…
    Launch a Class Action.
    Join forces and form a formidable army of transformers for the better… Doctors, RN’s, Lawyers, PHD’s, Graduates, Scientist, MA’s, MS’s all of you from every Industry & Field where you had to get a loan from SM.
    Get the picture!!!
    You are Americans with rights guaranteed by the Federal Government and Constitution.
    These are your taxes that they are loaning you. They work for you. They should work with you. You are not Colonial slaves of the old British Empire.
    There is a reason why the early colonist revolted and started their own government.
    Remember the checks and balances. No one government or government backed agency should be allowed to get out of hand and think itself god unto itself. Take back your government. Call upon your Democrats & Republicans to “truly” represent you.

  140. Amanda said,

    Here is an email address of someone from Sallie Mae I have sent her all of my complaints maybe if enough people send their complaints something will be done. KarlyJones@salliemae.com or Reply-to: eteam@salliemae.com It doesn’t hurt to try.

    Amanda

  141. Amanda said,

    From: Amanda
    Date: Mar 19, 2008 11:19 PM

    Just some advise for everyone who has or is thinking about getting a loan never use Sallie Mae. They call you non stop when your loans go into repayment. They lie to you about how much it is going to cost you when they go into repayment. I am current on all of loans and they call me saying I owe them money I have to prove to them that I don’t then they go “oops we should not be calling you I’m not sure why you were on my list” Yet they keep telling me they are going to take me off and fix it and the calls still have not stopped. If I don’t answer the call when they call they turn right around and call my co-signer. That makes me look bad and it is harasment! Im not talking about just once a month they are screwing up and calling me but this company has been calling me and my co-signer about 2 times a week since my loans went into repayment. When you call customer service if you are mad and let them know that you are mad they hang up on you! Thats real unprofessional.

    I am interested in calling an attorney and joining a class action lawsuit against them for the harrassement.

    My advise to you NEVER USE SALLIE MAE FOR ANY LOANS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    any questions send me a message! selbbub10@hotmail.com Put in your subeject line: Sallie Mae

    Amanda

  142. Lender to students faces claims of discrimination
    Tampa woman: Sallie Mae targets minorities.
    By TOM MARSHALL, Times Staff Writer
    Published January 5, 2008

    Battered by investigations and financial woes over the past year, college lending giant Sallie Mae now faces a new challenge: angry minority students.

    Tampa student Cathelyn Gregoire is one of two named plaintiffs in a possible class-action lawsuit, accusing the company of “systemic discriminatory practices” in marketing student loans to minority applicants.

    The suit, filed Dec. 17 in federal district court in Connecticut, alleges the company violated federal civil rights and lending laws by intentionally targeting higher priced loans to students attending schools with high minority populations.

    Martha Holler, a spokeswoman for Sallie Mae, said the company would vigorously defend itself against the “unfounded allegations in this baseless complaint.”

    But Christa Collins, the attorney going after Sallie Mae, is no rookie.

    A managing partner in the Tampa firm of James, Hoyer, Newcomer and Smiljanich, she has made her reputation bringing down large companies accused of discriminatory practices.

    Last year she reached a national settlement with Allstate Insurance Co. over allegations of unfair pricing, and in 2002 she reached a $160-million settlement with MetLife Inc.

    And Collins said she has plenty of ammunition for her latest case.

    “We’ve been contacted by hundreds of students or former students,” she said.

    In the lawsuit, Gregoire contends that her former school – the International Academy of Design and Technology in Tampa – applied on her behalf for a Sallie Mae private loan with a 7 percent interest rate in 2003 after she expressed interest in financial aid.

    The lender denied her application after a credit review, but later urged her to reapply. In September 2003 it awarded her a $14,276 loan, “which she later found out contained a 6 percent supplemental fee” on top of the regular interest rate of 5.5 percent above prime rate, or 13.25 percent, according to the lawsuit. Her debt has since climbed to around $20,000.

    But those terms were not disclosed to Gregoire until after the loan deal was consummated, the lawsuit said, claiming violations of the federal Equal Credit Opportunity Act and the Truth in Lending Act. It said Gregoire, an African-American, was charged higher rates and fees based on her race.

    Another plaintiff, Sasha Rodriguez of Branford, Conn., said Sallie Mae is now charging 18.1 percent interest on two loans she took out to attend a New Hampshire college.

    At those rates, which she said were concealed by the lender, her initial debt of $19,500 climbed to more than $33,000.

    Sallie Mae and other lenders had already been put on notice last summer that their marketing practices to some schools might constitute “redlining” – charging higher rates based on race.

    In testimony before Congress, New York Attorney General Andrew Cuomo said some lenders assign schools an interest rate range based on their overall loan default rate, and then assign specific rates to students based on their credit score.

    Last year Cuomo led a spate of state and federal investigations into unethical or illegal lending practices at U.S. colleges.

    Dozens of schools and lenders, including Sallie Mae, have signed on to a New York code of conduct and paid $13.7-million into a fund to educate students about financial aid.

    And last month Florida Attorney General Bill McCollum unveiled his own code, saying he would use it to push for higher lending standards here.

    Sallie Mae, the nation’s largest student lender, manages around $160-billion in student loans.

    While much of its business revolves around federally backed loans, the company recently said lower federal subsidies have prompted it to market its so-called private loans more aggressively. Those loans, around 17 percent of its portfolio according to the Wall Street Journal, are typically more expensive.

    The company is also in court over the collapse of a $25-billion takeover effort by a group of investors including J.C. Flowers & Co., JPMorgan Chase and Bank of America.

    That buyout fell apart last fall, a casualty of the increased congressional scrutiny into federal student lending and the slumping credit market. But in October, Sallie Mae sued its would-be owners to collect a $900-million deal termination fee.

    Tom Marshall can be reached at tmarshall@sptimes.com or 352 848-1431.

    [Last modified January 4, 2008, 22:44:28]

  143. Lyle Peterson said,

    It is not surprising that all of the referrals in the responses are to sites that give the standard, now way out, these are your options answers. This situation has gotten out of control and it will take the actions of a willy nilly congress to correct it. The standard answers are not a one size fits all option. There are and have been since the student loan farce was created situations where a student simply can not pay the loan. Sallie Mae is a narrow minded arrogant bunch of idiots who can not see anything but black or white in any situation. They generally choose to see black and the borrower sees red.

    Congress, in their infinite wisdom, decided that they had to knuckle under to a few news articles that cited one or two abuses of student loans. This is what gets them elected and re-elected. Giving in, giving up, failing to protect the rights of the citizens of the US. They can only protect themselves and their jobs as flawmakers.

    Government is a wholly owned subsidiary of corporate America!

    Contact your elected representatives. Give them your story and as many other stories as you can find. Inform them of the abuses that Congress has authorized with their witless flawmaking. Keep after them until they do something to correct this horrendous situation. Cajole and sweet talk at first but when it is obvious they aren’t listening tell them how it really is.

    Post your comments to them here. Tell us who you have contacted and what their responses are. What I get most often is, “I’ll pass your thoughts along to the senator/representative.” Yeah, right. I may as well write it on ice.

    Our elected representatives are totally clueless. They are unresponsive to the people’s demands until enough people are making demands. When their mail boxes, e-mail boxes and their phones are overflowing with complaints about their activities they may begin to realize they are losing votes. Without those votes their cushy job is gone.

    They are just regular people who put their pants on one leg at a time. They have no super powers. They are not psychic. They do respond to pressure but their has to be lots of pressure brought by many people.

    The alternative is to give them a huge check in support of their campaign for re-election. That is what corporate America does to buy them.

    LAP

  144. Hi Rachel,

    If you men you filed with a tax agency like H&R Block or something similar, then my best guess is that your tax return may be garnished to pay your loans. I don’t know much about this area. I would suggest calling your tax company and ask for an explanation.

  145. I wanted to take time to thank you for this interesting article. I found it to be very helpful as I can relate to it. I look forward to you writing again in the future.

  146. Racheal said,

    moniqueleonard
    Rachel – I’m not sure what you mean. Sallie Mae took your tax return? Or they wanted a copy of it?

    I’m not sure why they would ask for it…

    When I filed for my return I was told I would get it about in a week.
    Well instead of my return check I received a bill for services rendered from the company along with a note from them saying my return was being sent to Sallie Mae .

  147. Karissa said,

    Anita,

    I am in the exact situation your in with Sallie Mae. I have told them “they can bury me in a Sallie Mae coffin.” My payments are so high, I keep putting them in deferment. I was watching the “Suze Orman Show” and she was saying to pay the loans off as much as you can afford. I am in the same boat, and its sucks my will to live (especially the phone calls) anyway, any ideas would be welcomed.
    Karissa

  148. Rachel – I’m not sure what you mean. Sallie Mae took your tax return? Or they wanted a copy of it?

    I’m not sure why they would ask for it…

  149. Anita said,

    Sallie Mae calls me at least 5 times a day from various numbers. Sometimes they leave a message sometimes they leave a hang up on my cell phone. This is very irritating since my phone only holds 10 messages and usually in an average day, 3 or 4 are traced back to them. My loan is presently about 3 months behind. Recently they started calling my employer again. Claiming that they had no other way to reach me. I informed them in the past not to call but they started again. Anyway, I told the guy yesterday that I already spoke to them about 40 minutes ago on the phone and nothing has changed. Do not call my employer. As a result of the call, I lost my job. So I sent a fax to the “Legal Department” and certified letter explaining this. Later that day, they called my cell phone and told them that I’ve already talked to their office twice today and the only thing that has changed is as a direct result of receiving a call at work I’m scheduled to be fired as of April 1, 2008 meaning that I will have no money and no way to pay them or anyone else. So, guess what. They called me at my job again today and left a message. I returned Gina’s call and told her that the number was supposed to be removed and that I was fired now. She told me that based on what I was making I should have been looking for a better job anyway and maybe it was for the best. How will unemployment help me pay what I can’t pay right now?

    This has to be harassment or a violation of some law. I don’t understand how it can be legal for them to continue to call my employer and thus cause me to get fired?

    • Anita – it is illegal for Sallie Mae to call your cell phone to collect, unless you have given them your prior express permission to do so.

      If you would like to speak to an attorney about this, please give me a call at 415-956-1000.

  150. Racheal said,

    Sallie Mae took my tax return is this legal?

  151. Kelli said,

    First of all, I am a student attending full-time until December. My father co-signed for a couple of my private loans (total under $10,000) and Sallie Mae calls him everyday! When my father tells them that I am still in school they argue with him! I have e-mailed (without a response), called and had my school send more information stating that I am still attending. During one of my calls a rep said that they had received my school papers and that my parents should not be getting any more calls. The next day my mother calls and lets me know that they are calling non-stop again!

    I have no idea what I am supposed to do. Is there any where that we can report them?

    Please contact me if there is a class action lawsuit brought against them.

    Thanks!

  152. John said,

    I believe Sallie Mae practices purposeful incompetence to make money.

    Case in point- I consolidated several private loans for law school with another company, but when the consolidation lender attempted to purchase the Sallie Mae loan, somehow there wa a “miscommunication” between the lenders and the entire balance was not paid off.

    Not that big a deal, since the balance remaining on SLM is onlk 2k, but it gives the lenders another opportunity to throw someone into default if I missed the fact the entire balance was not consolidated.

  153. Jennifer said,

    I agree, when my parents and I both got loans so I could go to collage. Well after collage I was having trouble finding work. So my parents were paying both loans. Originally I wasn’t with Sallie Mae but the lenders I was with sold me to them. At one point they screwed up the interest rate and charged us lower then we were supposed to. They sent us the letter but not the payment book which my mom was paying out of.

    She sent the check for the old amount and Sallie Mae took the money, then hit me up for a late fee and demanded the full amount. Not only taking the smaller amount but requesting the full original correct amount.

    So once I got a job and saved up the right amount of money I sent them a check to pay off the whole loan completely. I even paid them 300.00 more just to make sure.

    Now I just got back from work, and my dad gives me two letters from Sallie Mae. The first one is date in December of last year congradulating my parents for finishing paying off the Loan.

    The next one is from this month stating they have defaulted on their loan and must pay for January AND Febuary.

    Only rich people who can afford a couple of thousand dollars don’t suffer from them. Sadly I’m not rich.

    Thanks for the Column.

  154. Marianna T said,

    This may or may not apply to this blog. My 80 year old father’s signature was forged to get a student loan. After contacting Sallie Mae’s Forgery Unit and complying with a police report, notarized signatures samples, Id theft affidavit and submitting signature samples of older legal documents. They find it impossible to continue with “investigation” if signatures made within one year of fraud are not submitted. This would not be an such an extraordinary request where it not for my father’s age.
    Needless to say, my father for some time now hasn’t signed ANY checks nor documents.
    It seems they would rather keep the cosigner document with the falsified signature than losing a cosigner all together ??

  155. JC said,

    Yea…… uhm……… Sallie Mae just called my fuckin job harassing me, not only at my job……. but on my boss’s phone!? So, I go in my boss’s office, and a Sallie Mae rep tries to make me pay $600, when I just payed them $150 last night. They don’t listen to realistic facts from hard working people that WANT to live up to their responsibiblty, but CAN’T because of their income. Sallie Mae doesn’t negotiate……. they demand and threaten.

    It makes me wish I never went to college. I’d still be poor, but at least I wouldn’t be poor and IN COMPLETE DEBT.

    And it’s sad… because here we are…. the richest country in the world…. spending billions of dollars on a WAR per MONTH, when we could use the money to pay for Americans education. Every other country gets free HIGHER education…. ain’t that some shit????

    JC

  156. MD Clement – I’m quite confused by your comment. I am very open about the fact that I work for a student loan company – namely the Student Loan Network. I actually work in teh IT department, I am not a loan rep.

    I also take offense at your suggestion that I play down things that Sallie Mae has done. It’s companies like Sallie Mae that give the rest of us a bad name. If I was playing down Sallie Mae’s bad side, would I have posted the news article that you left a comment about?

  157. md clement said,

    This Moniqueleonard seems to be a student loan rep. of some kind all she does is play done the terrible things Sallie Mae does and tries to change the subject. Sallie Mae is corrupt to the max why arent they in prison? They take advantage of the disabled and elderly people. They are the true parasites not the student borrowers.

  158. Thanks Troy, that’s very nice of you to say.

  159. Troy said,

    Thank you for taking the time to write this blog. I found this to be very helpful. The information was good and I look forward to you writing in the future. Thanks again.

  160. louise reeves said,

    I find this all very interesting. Sallie Mae would call me 5 times a day every day of the week trying to collect. I was out of work for 9 months and paid what I could. I wrote them letters explaining the situation and asking for help and never got answers. They called my friends who were listed as references continuously.
    Of course I got mad and told the callers they can’t harrass me 5 times a day-the response was, We can call you as many times as we want until you pay what you owe.”
    When I could finally pay them off completely with a refinanced mortgage, they would not give me the pay off amount unless I paid them $100 for it.
    If there is ever a class-action suit against these loansharks, I am in.

  161. Dee said,

    Sallie Mae owns some of the collection agencies that persue you for your student loans. IF Sallie Mae sells/ or claims defaulted loans which are then turned over to the guaranteer who in turn uses sallie mae collection agencies. Are you getting the picture? For every defaulted loan sallie mae collects more than once……..and interest charges too. It is a pretty sweet deal for sallie mae. Wake up people. There is no reason for them to make any effort to contact you. They are insured loans, and in the event that you are found then they can collect again through the collection agencies. It is all legal. But very wrong. Everyone should write to Senator Kennedy and let him know their story. He is a powerful man. I hear there are hundreds of thousands of students who have defaulted loans. It is time that our voices are heard. Get out your pens and write.

    Alexandria deJesus said,

    September 13, 2007 at 9:45 am

    THE COMPANIES OWNED BY SALLE MAE:

    ALLIED INTERSTATE, MULTIPLE PO BOXES
    PIONEER RECOVERY, INC; PCR, INC; PROGRESSIVE FINANCIAL, INC.
    INDEPENDENCE FINANCIAL SERVICES, INC.

    ADD YOUR COLLECTION AGENCIES TO THIS LIST

    THEY USE CELL PHONES TO MAKE THEIR CALLS. MANY TIMES THEY COME UP UNKNOWN.

    THEY MOVE AROUND FROM STATE TO STATE.
    THEY USE FALSE NAMES WHEN SPEAKING TO YOU OR LEAVING MESSAGES.
    THEY REMAIN UNREGISTERED AS A BUSINESS IN THESE STATES, NONCOMPLIANT.
    THEY DO NOT PAY TAXES OR COMPLIANCE FEES, LICENSING FEES.
    DO YOUR RESEARCH!!!

  162. Erin said,

    Want to get them back?!

    The companies real name is GRC, or General Revenue Corp. They are owned by Sallie Mae and do all of their collections for the company. GRC’s Info is below, along with 3 easy steps on how to file a complaint with the Better Business Bureau for Illegal Practices.

    The following link takes you to a site which outlines what collection agencies are and are not allowed to do (like calling you outside of normal business hours at work, or whenever you specifically say it is inconvenient for you) – (http://www.fair-debt-collection.com/rules/collection-calls-5.html). They were recently sued for malpractice and if you read the link above you were probably a victim of malpractice, like myself. They are relentless!

    General Revenue Corp (Owned by Sallie Mae)

    http://www.generalrevenue.com/aboutus.htm

    Cincinnati Office
    11501 Northlake Dr.
    Cincinnati, OH 45249
    Borrower
    Ph: (800) 234-6258
    Client
    Ph: (800) 234-1472
    Fax: (800) 234-5035
    877-672-9950 (No response number or “Dummy Number”)

    Or call Michael Schneider of GRC…He responded to the BBB letter submitted below saying that their employees are “thoroughly trained” and my statements of harassment were unfounded…
    His number is: (585)237-7000.

    If Mr Schneider doesn’t believe my claims, perhaps a few hundred calls will convince him of his “thoroughly trained” employees illegal practices.

    PLEASE CONTACT THE BETTER BUSINESS BUREAU ABOUT THIS COMPANY.

    Easy step to follow:

    1. Go to Better Business Bureau Website:

    https://odr.bbb.org/odrweb/public/GetStarted.aspx

    2. Use the Info above for GRC City/State/Web info to file against Sallie Mae/GRC

    3. File a complaint addressing your issue, similar to the one I filed, below.

    BBB Representative,

    I have mentioned several times to both to GRC (General Revenue) and Sallie Mae Representatives that it is both inconvenient and inappropriate when GRC (calling on behalf of Sallie Mae Collections) is calling me any earlier than 8am Pacific Standard time or on the weekends.

    This morning (Sunday) as well as yesterday, I received several calls from phone number 877-672-9950 (GRC) without any voice message or contact information. All were received before 8am and another was received as early as 6:15am on Sunday morning! While at work I also received a phone message from a family member saying that GRC had contacted them. GRC not only disclosed the dollar amount that I owed, but that I was delinquent and they inferred she would be responsible if they were unable to get a hold of me. Obviously, this family member had no idea what the situation was and became frantically worried about me. She had no idea (nor had I at this point because no one had left a voice mail) that my account was only 10 days overdue and not one late fee had even been assessed yet! This family member is in no way related to these loans and was randomly called.

    All of my information listed for Sallie Mae is both current and valid. I believe what GRC did by contacting someone about my debt and disclosing my financial information is bordering, if not blatantly illegal.

    It is NEVER appropriate for any collections company to call my family member/neighbors/co-workers etc about my financial issues, nor do these have any influence in the situation. There would be no reason to contact them.

    I have several Student loans through Sallie Mae and I have never made a payment more than 30 days past due.

    I understand my rights and I have notified both Sallie Mae and GRC that I have reported them for poor business practices. If their employees do not know my rights they should have them review the following link:

    http://www.fair-debt-collection.com/rules/collection-calls-5.html

    Particularly Section 805(a): Collection calls to consumers. If it happens again, you may expect a call from my attorney.

    Erin XXXXXXX

    • Another Concerned Student said,

      VERY WELL STATED!!!!! Thanks for all the information. I have not had to deal with their collection practices as of yet, but it sounds as if I will. It is great to be well informed beforehand…THANK YOU!

  163. Joann said,

    I just received a notice that they are going to garnish my pay for not paying my student loan from STENOTOPIA WORLD OF COURT REPORTING. This has been an ongoing night mare since the school was closed by NEW YORK HESC IN juLY 2000.

    The loan should have been forgiven since the State closed the doors on the school, but unfortunately I have been running around in circles since 2000. The State wants me to prove that I was in attendance, this is rediculous, they are the ones who have the school records.

    I also found information that the US Department of Education sue STENOTOPIA and the school owes them $295,085.00 and stated they misused the funds. The State wants their money and they don’t care who they get if from.

  164. Jaclyn said,

    I am looking to be a part of, or start a Class Action Lawsuit against Sallie Mae. Please contact me, with your name & story at jaclynmcnutt@hotmail.com.

  165. Hi Pamela,

    Let’s start with the private loans. They are VERY different from federal loans and not everybody can consolidate them. Visit http://www.parentplusloan.com/ to learn more about private loan consolidation and your daughter’s options.

    And now grace period. Federal Loans have a 6-month grace period after school ends – it’s required by law. Private lenders are NOT required to offer this. Check your master promissory note – read the fine print very carefully. She may have gone into repayment right after classes ended. Or she may have had a 3-month grace period, I don’t know.

    Also, it’s a popular misconception that the grace period is 6-months after graduation,. when really it’s 6 months after classes end.

    Now the credit card issue. That actually doesn’t surprise me at all. You see, the way Sallie Mae earns money is by getting the interest payments. I’m certain there are clauses in your daughter’s Master Promissory Note that talks about pre-paying. Paying them off by credit card would be a form of pre-payment and I’ll bet it’s forbidden by something in your contract. You’ll need to consolidate, and I warn you that Sallie Mae will fight every step of the way so be prepared for lots of phone calls.

  166. pamela holt said,

    has there been a lawyer contacted yet? my daughter has her federal student loans thru sallie mae consolidated. shes trying to ge her 3 private loans consolidated, but they don’t do the type she has. the interest is accumilating like crazy. it’s not been quite 6 months since she graduated and got her bachelors degree , but they have it down as if it has been. also they charged her a total, all of a sudden for 500.00 on the 3 loans, for insurance. when she questioned them, they call it something else. i told her i would come up with the money to help get these loans away from sallie mae, but when she called to pay them off with her credit cards,, sallie mae refused and said they could only accept her monthly payment, which isn’t even due according to 6 months after graduation. they told her they are sending her something to prove that they don’t do that anymore, allow you to pay credit off with credit. not that its any of their buissiness how one pays their bills, but i ,the mother is actually going to take care of it.i plan on getting with whomever goes after the bastards, to give all the help i can. the interest is acculating until i get my money ready, because they refuse to let my daughter take the loans out of their hands. i feel not only are they stealing money from her , but they have violated their contract….sincerely, pamela

    • Another Concerned Student said,

      I have never heard of a lending company refusing to take a payment because it was too early. That is ridiculous!! Has anyone managed to get a hold of a senior rep or branch manager/president? Since their names that the reps are giving are apparently fake, there has to be a way to research them and find a real person’s name and deal with them.

      Another problem which seems to be happening is that the attorneys, BBB, and other official places do not seem to want to help us with this mess. What are our alternatives? My loan will be coming to be due in a few months also… I do not have the tolerance to deal with terrible customer service people, nor the desire. Has anyone found alternatives yet?

  167. Kelly said,

    To Stephen Settimi,

    Have you started court proceedings? Or had any luck dealing with these crooks?

  168. Kelly said,

    WOW! Had I known all of this i would have never co-signed for my sons “student” loan – Which after the fact is now called a career training loan! They took an unauthorized withdrawe of over $400.00 out of my account causing my account to go into termoil! I just got hung up on by one of their representatives! This company is a joke!

    Dec. 1, 2007

    • Sarah said,

      I wish I would’ve read this about Sallie Mae taking an unauthorized withdraw from your account causing your account turmoil – they did the same to me!

      Did you ever resolve it?

  169. Nazmira said,

    I’m about to commit suicide, Sallie Mae is killing me slooowwwwwly

    • LCVD said,

      I wonder if you’ve survived. It has been 4 years since this comment.

      • mike said,

        contact kron and moss they have a class action lawsuit against sm and they will get sallie may to pay you 1 thousand dollars for there illegal threats and tactics and sm will also have to pay the law firm they have around a 90% success rate. the chairman of sallie mae built himself his own golf course with the money you send them your an idiot to pay them anything stand up for yourself they can only bully you if you let them write a letter to the attourny general your congressman be specific on there harrasment and bully tactics. i record there lies on the phone and im using it against them they tell me i dont have to pay im in deferment and then send me bills and i have there lies on recording they are getting real sloppy.there are several dozen othres lawsuits you can join and the more the marrier what do you have to lose people. president obama is even trying to stop them but congress is in lockdown right now.

  170. Julie Balotin said,

    I have been out of college for 5 1/2 years and am in the middle of finding a new job right now so I don’t have any money to pay my huge payments but I was making small ones when I could and I have had nothing but problems with Sallie Mae. I have been hung up on when trying to figure out what is going on with my loan cause everytime I call I get different info from the last and the person I am talking to has no record of my last call cause it wasn’t logged. Everything with them is always so wishy washy. They never know anything or tell you wrong info or just tell you the last person you talked to was wrong. They made me pay $150 forbarence fee, sent a letter saying it went thru, then called and said I owed money. They told me all the do is except payments that TERI makes all choices on my loan so I called TERI and they don’t even know why Sallie Mae has my loan. So nobody has any idea what’s going on with my loan but they keep harrassing me to pay but won’t answer my questions about my own loan! It’s very upsetting to me and my parents. They are always lying to you and being rude, just treating you like your a piece of crap and it’s not right. I totally want to give these guys a taste of their own medicine. I have been logging all the times each day that they call sometimes up to 11 times in a couple hour period. It’s hard enought trying to find a good job I don’t need they harrassing me as well. They act like I don’t want to pay, that I’m just holding back money from them. It’s just not right.

  171. Janna Weldele said,

    I started receiving calls early this year from Sallie Mae, evidently my daughter who has been dead since July of 2004 had several student loans with them. I refuse to provide them with death certificate b/c they won’t accept a copy that have. They want me to contact the out of state county records and pay 18.00 per copy so they can get their insurance payout on her loans. I tell them send me a check to cover the cost and I will be glad to do this for you.
    Tonight the lady was down right rude and said until I get this done they won’t stop calling me. My daughter was twenty-five and ewe aren’t co-signers on her loans nor did she have an estate, oh I suppose they could rummage through some boxes in our garage and take those. The most awfull part of all of this is when her little daughter that we are raising gets very upset when they call and she answers and they ask for her mom. I am ready to contact an attorney over this, they are so stupid, and I am not forking over 18.00 several times if they are going to harrass me like this. I call blocked tonights rude snip, like that will stop them.

  172. Mona Pellerin said,

    My nightmare began with the consolidation with Sallie Mae. I paid off other loans with no problems even my graduate studies partially through stipends which I had to work with special populations and the pay was low. I paid monthly notes for 10 years and now I owe more than I started. I sent an application for consolidation in April 1995 and the loan was not processed until July 1995 after the interest rates increased. According to student loans prior to 1998, interest rates were not to be more than 8.25% on any consolidation. Sallie Mae charged me 9% which was the weighted average. Also, reading the FFEL which regulates consolidations, it stated that Sallie Mae has the option of requiring any rate – so why do they always go to the highest rates. Not very user friendly for an organization that is supposed to be helping people with education. Furthermore, the deferments and income-sensitive payments are only their means of increasing the principle, it is really no help to the borrower in the long run.
    I have paid over $10,000 into the loan and still owe more than I started because the payments they provide never touch the principle. This is a disgrace for a federally-backed loan. Where is the oversight for this multi-billion dollar company. There is also a clause in the FFEL that states when interest rates are low, Sallie Mae can over a variable rate tied to the T-Bill but this is never offered. I have written letters and the only thing I get back is a generic letter stating that I committed to the loan. I think they need to be investigated for unfair practices that actually are abusive.

  173. dontunderstnd said,

    Anyone know how they can “withdaw a loan application” and say its cause of discrempencys and never call you back? what causes that? why? thx

  174. […] Sallie Mae, the nation’s largest student loan company, may … Banks targetting college students for high fees. Design by Beccary · Blog at WordPress.com. … Learn about here . . . […]

  175. Stephanie,

    I read your post which stated:

    “Well, he required a co-signer. My dad tried, and I did, too. Both my dad and I receive Social Security Disability, and we were denied.”

    Well, my husband took out a Student Loan through Sallie Mae which was, apparently, a private loan. He had to have a co-signer, and his father, which is also on SSD applied to co-sign, put on the app that his income was $0, and was APPROVED! A year after starting school at a Tech. College, he had to quit due to his boss making him work overtime and weekends in order to keep him from going to class. Soon after that, he was out of work off and on for two years (at one point, for 3 months straight), and we were not able to make payments. We had put all of the student loans into forbearance for 2 years, but they still sent these two private loans to NCO, a collection agency, who wanted $100 per month. Well, with only half of my husband’s income coming in, and me being 6-months pregnant with no job, we were hard-pressed to do even that. NCO never sent us any paperwork–only phone calls were made, and we had to make payments by Western Union Quick Collect because they wouldn’t give us an address to send a payment to.

    Now, my husband is back at work and we are trying to play catch-up on all of the things that got behind during the time he was out of work (we almost lost our home and had one car repossessed). The attorneys who called us about filing suit against us agreed to a payment arrangement that consisted of us paying them $100 per month until we received our tax refund, and then we would hand that over to them, and then we would pay nothing until the next refund, and had that over to them, and then it would be over-with. Well, when we got the paperwork, it read that we would pay them $100 per month until Feb. 25th and then pay them $5000, then $100 per month again until Feb. 25th the next year and pay them another $5000 and then $100 per month for the next 3 months. There’s no way we could afford $100 per month for more than a couple of months, and we never know when our tax refund is going to come in, much less if it’s going to be $5000!!! So, since we wouldnt’ sign these papers, they are taking us to court to garnish our wages. Now, with our income and all of our bills, we only have about 6% of our monthly income left at the end of the month if we’re lucky. If they garnish for 25%, we’re going to lose our home. I’m having to get 2 jobs just to make up the income we’re going to lose in the garnishment.

    Oh, and apparently, the federal loans that we thought were also in forebearance (more than once) have been sent to an unnamed collection agency for which we’ve only been given an 800-number (no address, no name). They’ve called one time when my husband wasn’t home (at least I think it was them–they wouldn’t name who they were with, just gave an 800-number, an extension, adn the name “Mr. Anderson”, which is what NCO did). We never got any paperwork from Sallie Mae saying that these loans were being sent anywhere or that the forbearance was over and we had to reapply–we were under the impression that the forbearance was for another 2 years, from what the rep on the phone told us. And, still, we have never received an paperwork from the collection agency whom the loans are currently with. We only found out they had gone anywhere when my husband called to see if we could get the rest of the loans consolidated. They told him no because $7,000 of it had gone to “a collection agency” and would have to be paid off before they could consolidate the rest.

    We don’t know what to do. We’re very confused because, as I said before, we thought all along that we were keeping these loans in forbearance. The forbearance forms don’t have a place to list specific loans you want in forbearance, so we assumed all of the loans under our name/soc.# would be included. Apparently not, and we were not told which were included. Two months after our first forbearance we received a letter from Sallie Mae saying we were still overdue, and when we called them adn told them we had filed a forbearance, they told us, “Oh, yes, I see. Disregard that notice, then. We apologize.” We kept getting notices like that, and would get the same response when we would call about the forbearance. Then they started calling my father-in-law about the student loans he co-signed, and we would call Sallie Mae, and, once again, they woudl apologize and say, “Disregard.” Then, the next thing we know, they’re with NCO and now we’re being sued for them. We’re beside ourselves worrying and wish that someone would be consistent.

    Just thought I’d share my story. If anyone has any advice, please let me know.

    Thanks!

  176. Stephen Settimi said,

    I’m interested in suing Sallie Mae and would like to find (1) other co-signers who would want to enjoin the suit in a class action, and (2) a qualified attorney who can see beyond contract law and address the more fundamental issue of equal protection under the law. Here’s the case:

    I believe Sallie-Mae has no interest at all in servicing student loans once the student begins to default on repayment. At that juncture in the life of the loan, Sallie-Mae makes little effort to collect from the student, but instead defers to the co-signer for loan payments, as co-signers are easier to locate and have more assets. I believe that as soon as Sallie Mae makes contact with the co-signer due diligence on their part in collecting from the primary borrower stops. No further efforts are made to collect from the borrower; thus treating the borrower and co-signer unequally, a violation of law and provisions in the contract which expressly states that the co-signer and borrower are one in the same and are referenced as one identity throughout; the documents euphemistically referred to this joining-at-the-hip as “you” in the terms of reference. If borrower and co-signer are treated as one and the same and equal at time of loan signing but not in processing or collection, then one party is being treated unequally under the law because the other has found undue protection because Sallie-Mae fails to comply with due diligence equally. Both parties must be treated the same from start to end. Sallie-Mae wants its cake and eat it too.

    Is any other co-signer interested in joining this action? Any attorney interested in representing this case? Senator Kennedy, any suggestions?

  177. Hi Stephanie,

    A good option for you might be to consolidate your alternative loans. This would be a separate consolidation from his Stafford Loan consolidation, but it works in much the same way. It stretches out the period of time over which you repay the loan, so your monthly payments go down.

    You can visit http://www.studentloanconsolidator.com/private/ to learn more about how it works. It’s often called Private Loan Consolidation. I’m not sure you’d be eligible if you go into default, so I’d start looking quickly.

    Also, avoid going into default at all costs because in some circumstances the fees can be added to the principle of the loan, then interest accrues on it, and it’s a vicious circle.

  178. Stephanie said,

    My husband took Stafford Loans thru Sallie Mae to go to a trade school. Unfortunately, the grants and Stafford Loans were not enough. He couldn’t get any more of the federally backed loans and his school suggested the “alternative loan” to make up the difference. Well, he required a co-signer. My dad tried, and I did, too. Both my dad and I receive Social Security Disability, and we were denied. Well, the school was able to “push it thru” and he got the loan…. My husband was told that the SCHOOL was the co-signer. Turns out that was NOT the case! Just one week late and you get harassing phone calls. “This is XYZ from Sallie Mae (or SLM Financial) and you have a past due amount of $ABC…Would you like to pay be check over the phone or credit card today?” Um…..It’s late because if we tried to pay TODAY, we would be overdrawn, not to mention possible bounced check fees. “Well, we can post-date the check.” Yea, there we go. Post-date for a date when we don’t know for sure if we will have the funds.

    I just want to say that we fully intended, and still intend, to repay this loan. We are still catching up from when we relocated for my husband’s job. SLM calls MY DAD even though he is NOT on the loan. I was even put on it, voluntarily, so they would remove my dad. they said they got it fixed. Yet, they call my dad when hubby is late. Different “department” calling….different phone numbers. I swear, they change the phone number monthly! And I think I know why they do it…So debtors don’t know it is them. Well, my kids keep me busy, so I can’t answer the phone EVERY HOUR! And they don’t leave a voicemail so I can’t call them back. So, I google the number, find out who it is, etc. I just wish my husband hadn’t needed extra funding, and that the “alternative loan” hadn’t been needed.

    That reminds me….the “alternative loan” is not a federal loan like Stafford. It is called “career training”. How does that figure under the default laws? I don’t want to end up in default, and try to make good faith payments, but I can see it heading there….They can’t be consolidated with the Stafford loans, and they only do forbearances that cover the past month(s) and MAYBE a few months in the future…not to mention charging $50 for a forbearance! Ridiculous! Any help would be appreciated!

    • LCVD said,

      You will be paying forever. It seems that if you are getting over-drawn, this mean you are living paycheck to paycheck. If this is a private loan you can’t arrange for anything except for paying them $50 to setup a forbearance. This is a fee and does not count toward payments. I think you have a private loan not fed. I seriously think you won’t be able to pay them unless you live like poor, sell your car or get a beater, rid of you cell and other things so that most of your check go to SM. Read my previous comment. There is no other way out. I am truly sorry. I am in your situation, although I am paying my fed loan of 30K that is affordable, but I am living well because I don’t play the Sallie Mae game. They will have to settle on my own terms with me. First, I don’t care about credit. You should not be using credit anyway. Save and buy when you have the money. If SM has a court judgment you cannot get a house on your name unless you want to live in a house with a lien. But you can do it like the Mexicans do. Best of luck to you.

      • Robert said,

        I agree & thank you for your comments.I took the loan for school & intend to pay it back but will fight to pay of just the principle & not the skyrocket interest rates they demand. My main worry is that my wife is co-signer on my Sallie Mae Loan & I do not want them touching her salary or tax returns all because of my mistakes. I am currently unemployed & have been told to call them tomorrow
        Wed February 8th 2012 to discuss payment. Can they deny me a forebearance ? or deferment ? …Really worried about them messing with my wives Bank account. We have a 14 year old son to worry about. Thank you to all on this wonderful site. God Bless you all & stay strong. You are good people & do not let these corporate bums tell you otherwise. Best always Robert New York CIty..

  179. joyce steele said,

    My daughter is in the Army and I am paying her bills. Sallie Mae said she owes $332.00 because 1) they said they never received her payment in November 2006 (they just told us this about 3 months ago) – We requested a copy of the check from her back, sent it to Sallie Mae and Sallie Mae said that was not their endorsement –
    2). they told us we owe this money because they had increased her interest rate from 6% to 12% because they thought she was out of the Army
    3) They told us they have to research this because they don’t know where this transpired from — each time they call us or we call them, we get conflicting information about the over charge. They call her constantly on her cell and I’ve told them to stop calling her because she is trying to serve our country and this harrassment is too much for her.
    Sallie Mae keeps telling us that they are researching the situation but we will get calls several times a day and they will say there is no research being done on my daughter’s account.
    Now my daught’s account is not current because of this mix up that Sallie Mae can not seem to find out what they did.
    We need help.

    • It is illegal for Sallie Mae to call a borrower’s cell phone to attempt to collect a debt, unless the borrower has given his or her express permission.

      If you would be interested in speaking to an attorney about your daughter’s rights in this regard, please give me a call at 415-956-1000.

  180. JoAnn Buchholz said,

    I am returning to school after 25 years and after reading this I am so glad that they audited my fafsa app so that I can make sure that I don’t accept the SallyMae loan no matter how much money I need. I am really worried about how long this is taking after starting school with a class debt of $913.60 not including books or anything else. I am so scared that I wont suceed since it has been so long since I have gone to school but I am tring to make sure that I do what ever I can to make it happen. Thank you for the info.I do hope that everyone is able to get together and stop this kind of abuse.It was hard for me to decide to go back to school and this is something that may have changed my mind had I seen it first. Sincerly, JoAnn

  181. Elyssa Davis said,

    My name is Elyssa and I am currently 90 days late on paying sallie mae. They call my house at least four times a day and I always awnser if I am here. It has been a year since I have recieved a paper statement or a bill. They recently released my loan information including my social to a consolidating company that harassed me as well. I recently requested a deferment and I never recieved a letter or a person contacting me about my application for deferment. I recently just started a new job and are playing catch up with my utilities and child’s daycare and preschool. A lady from Sallie mae stated to me when I told her I have no money that sometimes you have to rob Paul to pay Peter. I clearly stated I am not like sallie mae I don’t rob anyone I just try to survive. In deep fusteration and regret for taking a loan from them, Elyssa M. Davis

    • Shawn said,

      Please contact me!! Sallie mae is destroying me !! 810-908-3825… They will not work with me on a tuition answer loan and I am about to go into default!!

  182. Alexandria deJesus said,

    THE COMPANIES OWNED BY SALLE MAE:

    ALLIED INTERSTATE, MULTIPLE PO BOXES
    PIONEER RECOVERY, INC; PCR, INC; PROGRESSIVE FINANCIAL, INC.
    INDEPENDENCE FINANCIAL SERVICES, INC.

    ADD YOUR COLLECTION AGENCIES TO THIS LIST

    THEY USE CELL PHONES TO MAKE THEIR CALLS. MANY TIMES THEY COME UP UNKNOWN.

    THEY MOVE AROUND FROM STATE TO STATE.
    THEY USE FALSE NAMES WHEN SPEAKING TO YOU OR LEAVING MESSAGES.
    THEY REMAIN UNREGISTERED AS A BUSINESS IN THESE STATES, NONCOMPLIANT.
    THEY DO NOT PAY TAXES OR COMPLIANCE FEES, LICENSING FEES.
    DO YOUR RESEARCH!!!

    • Concerned Student said,

      I have been hearing rumors about stories of Sallie Mae and their lending practices. Most of the schools around here are attempting to get the students to transfer their student loans over to the Federal Agency (Stafford) so they can rid Sallie May of their terrible treatment of people who are wanting a better education, It is very wrong for an organization to establish a way for kids and adults to further their education without having to take from their savings, they are fortunate enough to financially afford to hide that money away for the “golden days.” For a company who robs people of that are pathetic!

      Good luck to you all, and me….My current loan amount is close to somewhere between 26k & 35K!!

  183. Alexandria deJesus said,

    STUDENT APPLICANT BEWARE OF THE WOLF!!

    I AM WRITING IN CAPS…POOR VISION.

    MY NIGHTMARE BECAME AN UNVISIBLE AND UNIDENTIFABLE PHANTON
    WHEN I HAD TO WITHDRAW IN MY DISSERTATION YEAR 1997. MY SPOUSE
    BECAME PROGRESSIVELY ILL FROM JUVENILE DIABETES. HE WAS ABLE ABLE TO KEEP OUR FAMILY SAFE. I THOUGHT THAT BY GOING TO SCHOOL I WOULD BE ABLE TO PROVIDE FOR OUR HOME. THAT NEVER HAPPENED.
    WE HAD TO FILE A BANKRUPTCY IN 1997. I FILED ALL THE APPROPRIATE
    HARDSHIP PAPERS FOR THE FLDOE UNTIL I WAS ABLE TO FIND A JOB.
    THAT NEVER HAPPENED. I HAVE BEEN UNEMPLOYED FOR TEN YEARS BECAUSE THE FLDOE HIRED OUT OF STATE COLLECTION AGENCIES THAT ARE NOT REGISTERED IN THESE STATES, RATHER OCCUPYING THEM AS A GERM/HOST TO RUN UNETHICAL COLLECTION PRACTICES THAT I WAS NOT AWARE OF JUST HOW CRIPPLING THEY CAN MAKE YOUR LIFE.
    ON JULY 23 ONE OF THESE COMPANIES, THEY USE MULTIPLE PO BOXES SO THAT THEY CANNOT BE TRACED AND…CELL PHONES TO MAKE THEIR PHONE CALLS FROM PRIVATE HOMES….THEY STARTED TO CALL EVERY FIFTEEN MINUTES FROM 6 AM UNTIL AS LATE AS 1 AM. ON 07/25/07 THEY CONTACTED OUR NEWLY WED SON’S INLAWS, LEAVING A FLASE COURT DATE, A FALSE NAME TO CONTACT, THREATS AND A DISCONECTED PHONE NUMBER WHEN THEY TRIED TO CALL THEM TO WARN THEM ON THEIR GROSS VIOLATIONS OF THE FAIR CREDIT ACT.
    DUE TO THIS HUMILATION THAT FRIDAY 07/27/07 MY SPOUSE BECAME UNRESONSIVE AND WAS HOSPITALIZED IN CRITICAL CONDITION WHERE HE SUSTAINED RENAL FAILURE. THEY CONTINUED TO CALL.
    THESE COMPANIES IF WE ALL CAN PROVE THAT SALLE MAE OWNS THEM AND WE CAN COLLECTIVELY BRING THEM TO COURT FOR ALL OF OUR SUFFERING THEN AND ONLY THEN WILL THIS TYPE OF TERROR STOP INVADING OUR LIVES.
    MY SPOUSE REMAINS SERIOUSLY ILL. I CANNOT EXPRESS HOW THESE COMPANIES HAVE VIOLATED THE LAW. HOWEVER, LET US NOT BE MUTE!
    CONTACT EVERY STATE GENERAL ATTORNEY’S OFFICE AND REPORT THESE PO BOXES, WHAT EVER PHONE CALLS THAT YOU HAVE RECEIVED, THEIR ABUSIVE LANGUAGE AND EVERY FALSE ACCUSATION THAT YOU HAVE RECEIVED AND UNDERSTAND WHAT THEY DID TO ME, THEY CONTACTED OUR FAMILY, THEIR EXTENDED FAMILY, OUR NEIGHBORS, MY OLD EMPLOYERS ANY NEW EMPLOYMENT OPPORTUNTIY THAT I MAY HAVE HAD, EVERY HR PERSON WHERE I APPLIED FOR WORK AND TOLD OUR PRIVATE BUSINESS.
    HELP ME AND YOURSELVES BY REPORTING THSES EVENTS TO YOUR STATE ATTORNEY GNERAL OFFICE. ALEX DEJESUS

  184. Jaclyn said,

    If you are interested in a class action suit. . .contact me at jaclynmcnutt@hotmail.com. . .

    • Dorita Smith said,

      I am interested in participating in a class action lawsuit against Sallie Mae, send me any info. you have on this.

      • Chris said,

        I am also interested in joining in on a class action suit. It is about time that SM be put in place becuase they have wrecked thousands of lives.

      • Cristina said,

        Is this class action law suit still taking effect and how can I join.??

    • melba Lanette said,

      Hi Jaclyn,

      Are you still going after sallie mae, because I would like to join in the lawsuit. They charged me over $2000.00 in interest in 3 years. My loan was for $4000.00, now I am oweing over $7000.00. I am so angry I could pop. Please let me know if you are still filing a lawsuit, because I also have friends in the same situation, and would like to sue also.

      Thanks
      Melba

      • Lee said,

        Call their corporate office at (703) 810-3000.

        Also ask someone in the corporate office to transfer you to Lisa Stashik, Director of the Office of Consumer Advocate.

      • David L. said,

        Me and my friend have loans outstanding and are in contact with NBC, in fact a reporter will be at my house tomorrow at 11 am. My friend has records that point towards Sallie Mae and the Art Institute of Charlotte collecting grants and scholarships and not putting it towards his loan. If investigated mine might as well, for a 2 year degree and after all said and done over 104,000 dollars being paid to them… Something doesn’t seem to add up. Contact me at Largeteau_david@hotmail.com and if you wish I may be able to put you in contact with NBC as well and have a very strong case against this corporation. They may be responsible for multiple felonies just under my friend’s account alone. If there were any time to go after them it is indeed now. The more people on board the better, take them down once and for all. If the new bill put forth by Obama truly hit them that hard, we should hit them harder and crush them like they’ve done to us. My name and credit are dirt until I am a middle aged man, time to get these guys.

  185. Jaclyn said,

    PEOPLE listen. . .Harassment to collect ANY debt is illegal. Let’s file a CLASS ACTION SUIT against SALLIE MAE. . .Sallie Mae is under investigation for these illegal practices. LOG every call that is harassing. Follow this protocol: When answering the phone first ask who is calling. Record their name, ask what their number is, and the department they work for. IF they DO NOT volunteer this info–you are under no obligation to offer any info. . .LEGALLY all collections people HAVE to identify themselves.

    1. Keep a LOG of ALL calls. Who called, number, department, etc. Legally, they have to identify themselves. (see Federal Trade Commision link below)

    2. According to the Federal Trade Commission–Sallie Mae or ANY collectors cannot harass, threaten, annoy, abuse, you to collect funds. . .and if you don’t want to recieve calls, LEGALLY, they can reply by mail. LOG everything!!! (see link below if you don’t believe the ways to collect debt. . .)

    3. If we keep a LOG book of all the threats and illegal practices, then they essentially are HANGING themselves. We just have to document all occurances.

    4. Sallie Mae is ‘red-flagged’ and is in the limelight, NOW is the time to take action. . .

    http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm

    • Carolynne said,

      I owe Sallie Mae a loan of $1015.00 in 2007. I still owe $1008.00 as of now. I was 45 days late. A collection agency started calling. I paid Sallie Mae. I thought I was caught up. They charged me $80.00 late fees. I called Sallie Mae to find out why I was still in collections. The person who took my call was so rude I hung. I tried to call back to talk to a supervisor but I am blocked, when I call and give my SS# it goes right to the collection agency. I can not even find out why I am still in collections. What can you do?

      • I’m sorry, Carolyne, but there’s nothing I can do personally. I do not work for Sallie Mae, nor do I have any contacts there. I write this blog to offer advice, that’s all.

        Given what you’ve written, I would guess you’re in collections because Sallie Mae wants you to pay the $80 in late fees. Generally speaking, if you were late in payment, they are within their legal rights to charge late fees.

    • Cristina said,

      I would like to file a class law suit against sallie mae…Has anyone started one? where can I find out?

  186. Hi Marie,

    I cannot call you and give you advice on what to do – I’m not a certified financial planner. All I can do is recommend what I would do in your shoes.

    I would suspect 2 things here:
    1) You’re being mistaken for someone of a similar name. – You’ll probably have a difficult time here. If you can prove you never attended the school that Sallie Mae has on record, that might help. However, they’re not likely to give you that information.

    2)You’re being mistaken for someone who previously lived at your address. In this case, proving that you moved to the new address/phone number after Sallie Mae’s application on record should get them off you back.

    3) Someone listed you as a co-signer without our knowledge. – This is fraudulent and the person who did this without your permission could be subject to jail time.

    4) Someone stole your identity – check the credit bureaus to see if this loan is on your credit history. If it is, notify all three bureaus that your identity has been stolen, and submit the report to Sallie Mae. You might want to find a lawyer, too.

    Get as much information out of Sallie Mae as possible – what school you supposedly went to, when the loans were taken out, etc. You need to prove that it’s not you.

    I should note that for those of you who simply don’t want to pay back your loans… well, you shouldn’t have taken them out in the first place. You signed a contract and you must re-pay them.

  187. marie Pierre said,

    please help me sallie mae is charging me for loans I never take and for loans that a pay off.

    My number is 646-226-6837

    thank you

  188. Hi Josh,

    Unfortunately your situation is normal when it comes to private loans. They have much higher interest rates, and as people tend to run to them for large loan balances, you pay a lot of money over the life of the loan.

    You are able to consolidate your private loans, which may offer some relief… not sure hoe much though. You can read more about your options at http://www.studentloanconsolidator.com/private/

  189. Josh R. said,

    Well i apply for a loan & had to a family member cosign.
    Signature Student Loan
    The loan is for $35,000 at about 15% and i’ll have to pay $107,685.37 total for the loan over 15 years am i wrong or is there something very wrong with that.

  190. Unlucky Student said,

    I am a 30 y/o doctoral student. My university tells me not to expect to gain employment upon completion. I will be well over 100K in dept. I do not believe I have a future. The biggest mistake I made in my life was going to college. Do not go to college unless; It is by full scholarship or you are in the sciences. A liberal arts education is worse than worthless. You will pay for your mistakes for decades afterwards.

  191. Mig, I wish you the nest of luck. It really can happen to anyone. I just learned that my friend’s little sister was duped by her boyfriend, who then dumped her and now she can’t find him, though she’s saddled with his loan.

    You DON’T want to go into default – it can ruin your credit history. As a cosigner, you’ve agreed to pay back the loan if he can’t. Since he’s dissappeared, you’re stuck with it.

    It is unjust, yes, but you’ll need to pay the loans while you dispute them or you could bear the consequence for years. And like the folk mentioned above, contact your state Attorney General, in person if possible. Also, if it’s a family member, and if it were me, I would bring other family members in to help find the missing person.

    Good to luck to you.

  192. Mig Wheeler said,

    I am a 65 year old aunt who was asked by my nephew to co-sign for loans.
    I never would have imagine that he would turn out to be irresponsible and
    inconsiderate. He is out of school and working but has not made an effort to meet obligations. I am constantly receiving letters and telephone calls from Sallie Mae in an attempt to collect monthly payments on the loans. I do not know his whereabouts and, therefore, unable to get in touch with him.
    Is there a way I can get out of this. Anybody has any suggestions they can give me? Desperate Aunt.

    • linda said,

      hello auntie- i too co-signed for family member student loan did you find a way to get out of it- my sister in law got her job but fails to pay the loan help -linda

      • Woody said,

        My wife (now EX Wife) somehow managed to have me listed as a co-signer to her Sallie Mae loan. Shortly after we divorced I discovered the deliquency on my credit report. I contacted Sallie Mae and the each person I spoke with suddenly became remarkably silent when I explained the situation. I asked if the argeement was notarized. They gave no answer.

        Our Property and Settlement Agreement stated that my ex-wife was to be responsible for her debt and I was to be held blamless. I sued her and won. Still have yet to recoup my loses.

        In short, I am stuck with repayment of a loan I never took out for an education I didn’t receive. and the payments continue.

        Anyone have any suggestions?

    • mike said,

      join a lawsuit against sallie mae there are tons of them on internet. you dont have to pay a penny and they will get you money for unlawful harrasment. tell sallie may you are involved in a class action against them and they will stop dont give them any more info write your attorney general also.

  193. Hi Linda,

    There’s no reason to be afraid if you educate yourself. Know what you’re signing, and know what the terms of your loans really are.

    The best loan to take out, and I think everyone will agree on this, is the Stafford loan because it’s a Federal Loan with a guaranteed low interest rate. There are 2 different types of Stafford Loans, and your school will determine which one you’re eligible for.

    This page has good information on how you apply and get awarded a Stafford Loan:

    http://www.staffordloan.com/stafford-loan-info/

  194. linda said,

    Hearing all of this is scarying me.. I am a student who just finished my freshmanyear at an Expensive college.and I already have 20,000 dollars in loans. sigh! I dont know what loans are best..and which are save.. which ones have the best rates and what not.. I amtrying to do my research for this coming year but very skeptical and scared to tellyouall the truth! sigh.. If anyone has any advice..feel free to share!

    • LCVD said,

      Pay the interest that is accumulating while you’re in school. Or make regular payments if you can now. You will be in trouble if you can’t find a job rightaway. My guess is that you won’t find a job that pays you to live comfortably while having a high monthly loan payment.

  195. heather said,

    I just applied for a student loan through them….wish I found this before!!! I wonder if there is any way to stop the process..??

    • mike said,

      talk to your school loan advisor about this at my school the rule was i had to complete two classes before i was obligated to college or past the point of no return. mabey you can give the money back immediately if your school gives you a check for left over money dont take it leave it in the account to go bach towards loans. its impossible to ever pay it off, even in full a friend of mine paid 30,000 in full and thought they were done with sallie mae then two years later sallie mae said he owed them close to 50,000. tell all your classmates write a letter to the atourney general and have everyone sign it saying your all concerned about this predator and you as future victums good luck my girl God bless

  196. Lauren said,

    I had a problem with New York State Higher Education Services Corporation’s collection tactic on my student loan. They referred the collection of my loan to a law firm on Long Island called Rubin & Rothman, with whom I negotiated a repayment agreement after they had one of their employees call me asserting he was an attorney (when he in fact was not) aggressively trying to get me to borrow money from my credit card to repay my loan. They accepted the first payment on the repayment, and then claimed that my second payment was late when the returned check clearly showed that they in fact had cashed the check before it was due. They told me to contact a certain person at their firm to discuss this, and this person never answered her phone or returned phone calls. I finally called another number at their firm and asked to speak to an attorney, who told me that I could only speak to the person designated on the letter I got. I explained repeatedly that she never returned my calls and that the firm did not respond to my certified-return receipt letter to them showing proof that my second payment was timely. They refused to deal with me and then refused my third payment, returning it to me. In essence, they did enough to warrant receipt of payment from NYSHEC for attempting collection, and that is all they were interested in. Now, NYSHEC is asking me to pay collection costs in the amount of over $3000, probably for the services of this crooked law firm they hired, which is probably politically connected. This is a scam. The government gets away with this type of scam and we are powerless to do anything about it. I have kept my records and I will pursue this with Senator Kennedy. I hope he can do something to help me and others who are bullied by political cronyism and big ineffective bureaucracies who don’t properly respond to what student borrowers are telling them about the corruption that exists in the collection process by government agencies.

  197. Hi Mary –

    I”m not sure what an EU loan is, so I’m not sure what your grandson signed you up for. It’s not any kind of financial aid I’ve ever heard of. I wish you the best of luck, though. Perhaps it’s time for the young man to start paying his debt to you?

    • mike said,

      you must be a sallie mae rep. stay off here theres a special place for you in hell, pastor mike

  198. mary j. nacco said,

    I am a 75 year old grandmother who was asked by a panicked grandson to co-sign a loan that he need in 5 minutes or he could nnot refister for his first year in college. I gave him my ss number and never thought about it again until salliemae started sending me agressive phone messages that I owed them money. I really did’t understand what it meant until I got a rep from that company to explain that I was not only the co-signer,but the loanee.. The loan was a EU Loan that I had never heard of and they insisted I must pay monthly interest to them. I tried to have them change the loan to a deferred interest after graduation, and some reps agreed and some did not. Just today I received a nasty poster from them saying they were going to notify all the credit agencies. I now intend to notify the att’y general of New York and assess him of the situation at Hartwick College. How could they steer a new freshman into such a loan? He has five siblings younger than he and still sallie mae was able to con this young man into an untenable loan. Hoping to hear from you.

  199. michele said,

    Ira if you find out anything please send me an email.
    Monique is right contact the attorney general’s office. I have been fighting with them for 20 years. my story is also very upsetting. I have tried BBB, Congressman, School, the actual lender, and the Attorney General’s office at Greenville Texas, they said that they would look into it. What puzzles me the most is, I wrote the school and asked about a defaulted loan and there was no record of it because it was cancelled. The National Guard had picked up my tab. And when i joined the Army they came after me and since they had proof and not sallie mae, I paid the Guard. My tuition was less than 400.00 and they are asking me to pay nearly 5,000 despite me having proof from the bank, the school and the National Guard. They have harrassed me with phone calls every hour or every five minutes. When I asked for proof they never provide it and then they send me different items that look like the paperwork has been altered.

  200. Hello Ira,

    I have no legal expertise, so all I can do is offer you what I myself would do. Contact your state’s attorney general and tell them your situation. Perhaps they’re involved in an investigation already. If not, you can point them to what’s going on in other states. I wish you the best of luck.

    • luckybelle20 said,

      I am a 24 year old single mother struggling to provide for my family. I dont live on my own because I simply can not afford to do so. I had no cosigner with my loan through sallie mae. I was never informed that if I didnt graduate my payments were due immediately, nor was I informed that when I began my payments would be $250 per month. I am currently unemployed. I left Lehigh Valley College in Allentown, Pennsylvania 6 months after starting when I found out I was pregnant with my son. Within weeks of leaving college Sallie Mae began their harassment, claiming I had signed stating agreement to pay immediately after leaving college. Which they were never able to provide proof of. Since signing for the loan I have yet to be able to afford $250 per month payments. After a family friend suggested that if I sent in anything towards my loan they would have to accept it as payment, I tried that, I sent them $30 the first time. A few days later they called and told me that my payment was being returned to me as an improper payment. They refused to negotiate or consider lowering my payments to what I could afford. My loan was originally only $1500 per semester. So since I only attended college for 2 semesters most would assume that I only owed Sallie Mae $3000. Wrong! According to them I owe for 4 semesters.
      When I told them I refused to pay $250 a month on the grounds that I had never agreed to pay that much nor did I have that much each month to pay them. Thats when they rudely suggested that I apply for deferment, twice I was denied. Mind you when I applied I was on state assistance with no job. How could I not have been accepted for deferment when I met all criteria! When I was denied I called them and asked to speak with someone who could explain to me why I was denied. They refused to patch me to someone who could explain it. They completely shut me down and flat out told me if I didnt come up with $250 within the next 4 weeks that they would be forced to place my loan in default. This was a total of maybe 4 or 5 months after leaving college. Again I tried to make a payment, I sent in $50 this time. Again it was sent back to me. Again I was threatened with default.
      Then they started harassing people I had listed as references. They started calling my aunts at their job and threatening to sue them for the debt which they were told was nearly $4500 at that time. They harassed my grandmother threatening to garnish her wages because she had cosigned for me. Which I had no cosigner. So she ignored them and that was that.
      They continued their harassment, even to this day. They refuse to accept anything lower than $250 a month, they continously declined me for deferment or forbearance. They forced me into default which has severely damaged my credit. And to top that off they have recently begun threatening to take me to court, claiming that if I dont pay them the balance of nearly $8000 that I will be sued and have to travel nearly 4 hours to Harrisburg for court and that if I can not make payment then that I will be placed into a jail until my debt is paid by 10%.
      My point is this… They have harassed me and my family, they have made outrageous threats towards me and my family and to top that off they have also been unbelievably rude. When I informed them that I was not employed and that I was on public assistance to get by and make ends meet, the woman I spoke to flat out asked me, “Well is it because you dont care and dont want to work or is because you think is a joke?” I was appauled. I was even more shocked when I spoke with a male rep who asked “Are you serious? Oh, your one of those mothers who thinks being on welfare means you dont have to pay your debts!” I told him off point blank. I was no longer going to sit there and be treated like that and be courteous to them.

      They lie, they manipulate and do their damndest to make you terrified of not paying them. They are corporate bullies who think they dont have to follow the rules nor do they cooperate and listen to your unique individual situation, They simply want their money and they really dont care about being respectful nor courteous but I will say that when you get rude right back with them its hilarious!

      They can not come after your references, only a cosigner. If you do not have a cosigner do not let them fool you into thinking that they will sue your family etc. Legally they cant! They can not take your vehicle into auction unless you have more than one vehicle in your name. They can not force you into making any specific payment over $100 a month. And you can not legally be rejected for forbearance or deferment if you are on public assistance or are unemployed. They will lie to you and try to trick you, be smart know what laws are in place for your individual state. Dont let them bully you and truthfully I am very happy to see that they are being sued and I will definitely be in touch with my states rep to find out how to be included in this lawsuit for their harassment, slander and threats!

      • stefanie said,

        they are doing the same thing to me and i just found out that not only do i have federal loans i have private which i had no ideal i had i dont have the money to pay for the both of them they have harassed everyone that i listed also

      • mike said,

        i graduated 18 mths ago and sallie may said we all were to have one year after graduation to find a job and start making payments right, wrong i barrowed 3000 and they now say i owe them 10,000 and are threating default, they told me they have as much power as the irs, and could send me to jail take my home and garnish my disability pay. i filled out deferment papers 5 times but they say they never got it, my doctor filled out loan forgiveness papers saying im disabled but that did no good, first the dates were wrong the second time they say it wasnt signed there is always an excuse. they keep stalling and leing and misleading me until i am defaulted and now they no all my info about ssi so they can garnish it. the only way out is death and even then they attack your family. i have read over two hundred simular stories and it scares me to death. we must find and join law suits against them. krhon and moss seem to be a good firm. look on the net there are several to chose from. they are scandalous and we the victums must speak out and be bold and loud after enough of us do someone must do something we have to believe that and dont give up. God bless you all never give up we have more power in numbers and we will win they just dont know it yet. any valuable info send to holder33@sbcglobal.net


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