Thursday, April 2, 2009

Your Emails: Sallie Mae Servicing - Loanshark/Beyond Predatory Lender

My loans are consolidated with Sallie Mae. Sallie Mae has added per a recent conversation with one of their customer service reps $15,000 in interest to my student loans in approximately in a 7 year period. I recently started paying on my loans on Sallie Mae's graduated plan. I have a due date for the 28th of the month, but because I pay Sallie Mae earlier than that date I am told I am being charged additional interest on my account. Further, Sallie Mae are showing my loans in my credit file as if I owe two loans instead of one. They are not showing all the original lenders as paid in full even though Sallie Mae was suppose to pay off those original lenders they have listed them as if the information on those lenders are not available and they don't know their phone numbers or the balances, which is impossible since Sallie Mae is the one that paid all those initial lenders off in full. In one of my credit files Sallie Mae is listed on all my loans and have taken the original lender off. In another credit file Sallie Mae show me owing them $58,000 and $66,000 when I have only one consolidated loan with Sallie Mae. Students need to get together and protest and March until our government stop this insane abuse of student loan practices by lenders.

Sallie Mae has not reported my monthly payments to the credit agencies. I have not as of today received a requested written statement from Sallie Mae of my account. Sallie' Mae's customer service told me I had to have either a coupon book or a statement, but I could not have both. While I am paying Sallie Mae the agreed on payments on my loan and before my due date. Sallie Mae tells me the interest on my loans a increasing because I pay earlier than the due date via mail.

The interest on these loans are more than the entire initial loan and near impossible to pay because of the huge amount of interest, which Sallie Mae says accrues daily

The consequences of these loans were never explained properly when taken out. Lenders like Sallie Mae are taking advantage of t he poor, the uninformed, and those simply wanting to better themselves by pushing these bloodsucking loans on to unsuspecting students when the bulk of these students will end up with nothing but degrees in fields where there are no jobs to be had and a loan it will take them the rest of their life to payoff working in jobs slightly paying more than minimum wage.

The interest on all student loans should be frozen for at least 5 years to give students an opportunity to bring down the principle on these loans. The Government should allow students to discharge the interest on these student loans in bankruptcy since the lenders are collecting more than their fair share of interest. The Government should allow lenders to charge only a flat rate of interest on student loans and not compound the interest daily. .

9 comments:

Unknown said...

already i get education loan for my daughter, last 2 years. only 2 lakhs loan for her bhms education. this year syndicate bank said cumpulsary i paid interest, otherwise they have not give the amount. our prime minister anounced interest free education loan. then what i do?

Anonymous said...

First of all, you realize interest is a daily accrual. I do not know if your interest rates are fixed or if they are variable, but if they are fixed your interest rate never changes nor does the daily accrual of interest, unless you postpone payments and let interest build and capitalize on the principle.

Again I do not know the details of your loan, but subsidized federal loans do not collect interest during federal deferments. Unsubsidized will. Unpaid interest at the end of a forbearance, deferment or a generation of a new payment schedule will cause collected interest to capitalize.

7 Years. A 30 k dollar loan @ the GOVERNMENT set interest rate of 6.8%, which has been the norm over the past few years, will collect 14280 in interest. Do the Math!!
READ THE PROMISSORY NOTE!!! REALIZE what you are getting into!!!

Credit reporting, all servicing companies report at the beginning and end of each month. If your credit reports are conflicting, file a formal dispute with them. 90% of the time it is the credit reporting agency that is behind on updating their systems.


FREEZE INTEREST FOR 5 Years!!!

Does your car loan do that? How about your house? NO and NO !!! it is a loan people. Just because it is not something physical in your hand it does not mean it doesn't classify as a loan. ITS A LOAN!!! Get with the program.

I don't mean to offend. What upsets me is lenders, schools, parents and most of all borrowers lack of effort to realize what they are getting into.

Education is expensive, in my opinion, it is the root of the WHOLE problem, tuition costs are entirely way too much.

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Anonymous said...

I have loans with my university and will Sallie Mae for a Master's degree. My loan with the university is steadily being paid off. As Sallie Mae applies the payment first to the interest and then the remaining to the principal, the company is in effect getting more money from you in the long run. Your balance decreases slower.

Here's my advice, sell your loan back to the university if they will take it or pay it off with another provider. If you make regular payments, they will happily take it back. It is what I am doing ...

W.C. Varones said...

Hate to break this to you, genius, but Sallie Mae is the Government.

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Unknown said...

I signed a grant with ICM School of business. The admissions lady Marci told me the terms of the grant were to work in PA for at least a year after graduation. She did not however mention that I would have to work in the IT field or it would not count. This resulted in the grant turning into a loan and getting taken over by AES. My loan is not a fixed interest rate resulting in a huge fluctuation in how much I owe on any given mth. This is unfair and should be illegal.

Unknown said...

I signed a grant with ICM School of business. The admissions lady Marci told me the terms of the grant were to work in PA for at least a year after graduation. She did not however mention that I would have to work in the IT field or it would not count. This resulted in the grant turning into a loan and getting taken over by AES. My loan is not a fixed interest rate resulting in a huge fluctuation in how much I owe on any given mth. This is unfair and should be illegal.

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