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Author Topic: Sallie Mae continues to screw me...
Sam
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Posts: 1
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Post Sallie Mae continues to screw me...
on: November 16, 2013, 14:04

I basically work to pay Sallie Mae loads of money in interest. After giving up on them providing me any help, I decided the only way to get rid of this debt was to save every penny and begin sending in checks to make principal payments on my loans. I have about 50k in private loans (serviced by Sallie Mae) on top of the 25K in federal loans (serviced elsewhere). I had to find a way to afford this. I am working two jobs and live at home with my parents at 28 years old. Over several months I was able to save up 3500 dollars and I sent in a principal payment. It was applied to my account and the loan amount was reduced...all fine and well I thought. I logged in to my account, as I do weekly, and found I had no payment due. I enrolled in school this semester to return for a masters degree and Sallie Mae automatically deferred my loans. As if I want them to continue to accumulate interest! Interestingly this occurred in October. The semester started in August. There was no notification sent to me, no attempt to send correspondence, nothing. I called and asked how this was possible and the woman couldn't offer an answer but said she'd have it looked into for me. She said it would be 14days until they could set up my auto debit again. Unacceptable! I also asked her to address the fact that I never received the interest rate reduction for setting up automatic debit. Again she had to have that "looked into". Just about fourteen days later after 1 missed auto payment I found they have set it back up on my account but still no interest rate reduction. The best part is, after I worked so hard to save this money and make this large payment, they have now raised the interest rates on my student loans for the first time in years. My largest loan is about 26K at 9.25% and actually stayed the same. I have two others that raised about 1% in interest. The loans are variable so the rate is subject to change. Does it make sense that two were raised and one stayed the same? I find it very interesting that I can finally put a slight dent in these loans and Sallie Mae still finds a way to screw me! They stop my payments without authorization and I wait to have it fixed. Next, they raise my interest out of the blue. I never had any of these issues until I tried to make a principal payment.

For years I've asked them to offer a program to lower interest rates but I always get the same response. "We don't offer any program like that at this time." I make a modest income and at one point was on their interest only payment program but I have never missed a single payment! Why don't I deserve an interest rate reduction? These student loans are the worst decision I've ever made and there's no way out.

I would never ever recommend someone take out a private student loan with terms like this. Unfortunately, when I was 18 years old no one explained this to me.

mlux22
Administrator
Posts: 3
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Post Re: Sallie Mae continues to screw me...
on: November 16, 2013, 14:19

Sam,

First let me applaud you on being so proactive with your student loans. I know it is a huge pain, but in the long run you will be far better off.

Based on what you are saying it sounds like Sallie Mae decided to automatically defer your loans when you returned to school. It seems wrong for them to do that when you were expected automatic withdrawals from your account as well as a lowered interest rate.

I haven't personally worked with their Consumer Advocate Unit, but I've heard good things from others. I'd suggest giving them a call at 888-545-4199 or sending an email to [email protected] Explain to the consumer advocate exactly what happened. I think at the very least you should get credit on your account for the extra interest you had to pay as a result of their failure to take a timely withdrawal from your account AND from their failure to lower your rate by the .25% they promised.

Good luck and keep us posted on how it goes!

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