And then...

I had an interview with Ben Elgin of "BusinessWeek" magazine Sunday evening. We met at a restaurant near my home (he was on his way through to Seattle to meet up with collegues) and we went through all the paperwork.

Interestingly, he'd gotten some feedback from Sallie Mae already about their practices. Supposedly, the PR person he spoke with has stated they're putting a cap on percentage rates for private loans given starting this year. However, nothing has been done for those of us with high interest rates due to being granted the loan prior.

Some of the more interesting points of the interview:

- My loan has an 18.5% interest rate when I _DON'T_ pay for it, and drops to 13.9% when I do... Now, this interest rate went into effect as of the first day of my loan, and had accrued interest from day one at 18.5% - even while I was in school. Apparently that was not something that Ben expected, as he told me most federal student loans have a zero % rate while the student is going to school, and then goes up from there.

- Sallie Mae failed to pay for my school on time twice. No reason was given as to why, and there is no information regarding whether a late fee was tacked onto the payment - and if so, if it was then passed on to me.

- Sallie Mae originally granted me a $22,000 private loan when I had an income of less than $200/week (unemployment and a part-time job combined). When I requested a consolidation of the private loan, and my income was $1000/month after taxes, I was denied because I didn't make enough money... WTF?

- My private loan was originally granted through Stillwater National Bank, a subsidiary of Sallie Mae. I received a letter about 8 months later from Sallie Mae stating that they'd "purchased" my loan from Stillwater National Bank... Now, here's my question: how can you purchase something from yourself?

- Sallie Mae's letter to me explaining their collection processes state that they are following the law to the letter under the Higher Education Act of 1965, and they increase the contact based on the number of days delinquent. From my understanding, even the Higher Education Act of 1965 is subject to the Fair Debt Collection Practices Act.

- Sallie Mae has stated they have had to place my account with them into a "special" area, and as their set-up is not geared to non-telephone contact, I will simply receive NO contact from them whatsoever - including receipts showing that I've paid them - because they cannot STOP the calls from coming through any other way.

All in all, it was an enlightening interview for both of us. We walked through my various statements, showing the increase in the private loan interest rate while I was going to school, and then the late fee increase and monthly payment increase by them each month I was unable to make payments...

Ben has stated he is going to call me in a few days, and apparently there is going to be photographer that will be contacting me as well.

I verified with him that, should you want your name changed, but still want to share your story, he wants to talk to you. This is an important issue that needs to be fully exposed, and changing your name doesn't change the facts.

Please - if you have had a private loan through Sallie Mae, and they're screwing you for it, let Ben know. It's important, not only for yourself, but for others out there who need help, too.

~M

Laughable

I received a letter yesterday from Sallie Mae, in a really "official-looking" envelope, on "official-looking" paper, all embossed and everything. It was a response to the BBB complaint I put in.

They basically spent 1.5 pages justifying their repeated attempts to torture me telephonically, stating they had the right to based on some statute I need to look up to find out and clarify. I'll re-post the letter here in its entirety, but I needed to get this stuff off my chest right away. I actually was having frantic, angry thoughts all night last night and didn't sleep very well because of the letter.

I have issues with people trying to justify their actions when they *know* it's illegal, when they *know* someone cannot fulfill the request, and when they simply don't care. I can't imagine EVER working for a company like Sallie Mae, when they end up treating so many people like crap. I have a higher moral standard, I guess. I cannot abide treating people that poorly. I cannot justify it by stating that I need the job - there are plenty out there, even if it's flipping burgers - at least you're helping people rather than harassing them into the deepest depths of despair and self-loathing.

I hope Sallie Mae ends up losing every bit of their employee base on a grand scale.

~M

Life sure is interesting...

Just after I started a new job (one that was closer to home, and a better pay rate - not to mention better bennies), I received an email from Ben Elgin, a reporter for "BusinessWeek".

My story, along with several others, was sent to him by Alan Collinge (the founder of Student Loan Justice PAC), and he wanted to know if he could interview me. I agreed, and answered his questions, including what type of financial set-up I had prior to the loan, and whether I'd had any savings at that point. I've also agreed to send copies of my loan paperwork to him for him to look through, as he has stated that he wants a fuller idea of what happened.

When I thanked him for choosing to interview me and listen, he replied with this:

Thanks for your candor and for sharing your experiences. It helps me to really understand the human cost of these aggressive student loans. (BTW, I’m also a bit of a karaoke fan, having met my wife at a karaoke bar many years ago ;-))…

Thanks for gathering up your student loan paperwork, that would be a tremendous help. There’s no need for you to pay for any of these expenses. Whether it’s easier to fax them or mail them, just keep a receipt and we’ll happily reimburse you.

Your help is very much appreciated. I’ve reached out to about 20 people with life-changing, high-interest private student loans… but only 2 or 3 have been willing to share their stories in greater detail. So, I really know how difficult this is for many people to talk about… yet, it is so important for people to share their stories to help the rest of the country understand just what exactly is going on here… so, in short, thanks!

I used to be afraid of what others would think if I told everyone about how much trouble I'd gotten into, physical, mental, or financial. However, in a case such as this, because of the fact that my story might help many others, I am not hesitating to share - and I feel let down that others who had their stories sent are not willing to do the same.

I'm asking, for Alan's sake, for my sake, and most of all, for all those out there who are in the same position, or could soon be in the same position - share your story. You can ask to have your names changed in the interview - it won't make the story any less valid. This is the one chance that we have to voice what is going on, by utilizing a NATIONALLY RECOGNIZED MAGAZINE!!!

You can reach Ben Elgin at: Ben_Elgin@businessweek.com

~M