Tuesday, June 10, 2008

Frauds and notations...

I am still here, and still keeping tabs - life, however, has had its demands lately; not the least of which was becoming a new mommy about 4 months ago… Meanwhile, I am still occasionally getting comments on my original post over at my personal blog, under the “Sallie Mae Sucks Ass” (you can check it out), even though I’d posted there (in the comments section) that everything that had to do with Sallie Mae from that point on should be directed over to this blog. The following is the most recent of comments that apparently was posted to try and dissuade me from continuing on with my determined plan to help stop (or at least slow down) the financial hemorrhaging that Sallie Mae has caused to so many borrowers:

companies like sallie mae are purhased and sold all the time emailing the VP will do no good. Besides do you honestly think anyone will read them? I used to work for "Salie Mae" although i represented the Guarantor, USAFunds. We are in the same building (same #) calling about the same loans but are a seperate corp. thank you "mortgage financer" All i can say is you know how much money you are borrowing what did you expect the payment to be afterwords? try taking out 40 - 50,000 for a car and see what that payment is. The fact of the matter is that federal student loans have an extremely low interest rate are are the best type of loan a student can have. If you took out Private loans then sorry for you those interest rates are crazy high, but that amount was figured at an amount that someone (you, parents etc) should have been able to contribute to your education, wastefull spending is no justification for these "harrassing" calls. If you borrowed enough money to make a $500 / mo payment your job should reflect that. I borrowed 40k myself make $9/hr and can still find plenty of money to live and pay every bill i have. Stand up be a man and adjust your lavish lifestyle back to normality. I would imagine you have used forbearance over and over which has only capitolized your interest probabl doubling your loans by now. Word of advice if you havnt already. START PAYING anything will slowly eat away your debt, may not stop the calls but will obviously help. You have to prove and "Undue Hardship" to get any legal help for student loans. These loans are created to be given easily to students to get them the knowledge they need to succeed, for that reason they are incredibly hard to dismiss. Your choices are A: Permanent and Total Disability or B: Death.

Now, let’s take a good look at this note, piece by piece. Let’s really analyze it and see where it’s coming from. First and foremost, the lack of spell-check and punctuation, not to mention the proper capitalization of words. It’s sad that what I’m seeing here is someone who still works for Sallie Mae (It‘s pretty obvious), who can’t spell their name, and who can’t seem to figure out how to create proper sentence structure or spelling.

So, from the beginning…
companies like sallie mae are purhased and sold all the time emailing the VP will do no good. Besides do you honestly think anyone will read them?

Actually, not only did they read it, but something actually got DONE about it - and you’d know this if you actually did a bit of research through my actual Sallie Mae blog and noted that I not only got a reduction of payments, but also a reduction of my percentage rate - via Barry Feierstein, the VP of the company. Thanks, but you’re already beginning to annoy me from sheer stupidity.

I used to work for "Salie Mae" although i represented the Guarantor, USAFunds. We are in the same building (same #) calling about the same loans but are a seperate corp. thank you "mortgage financer

I’d say you STILL work for them, what with your lack of empathy, not to mention your piss-poor information. Further, they are NOT a separate corporation - they are all under the same major corporate vendor identity that is Sallie Mae (or is that Salie Mae, as you spelled it). This is something that has been a repeated bone of contention throughout the company’s long history with its borrowers. They own over 12 different collection companies, but claim since those companies are all named differently, they are all allowed to call individually for loan collection - even though they are all doing debt collection for the SAME COMPANY - Sallie Mae.

All i can say is you know how much money you are borrowing what did you expect the payment to be afterwords? try taking out 40 - 50,000 for a car and see what that payment is.

I’m sorry - if you’re going to take out a loan for $40-$50,000 for a CAR, then that’s a different kettle of fish. A vehicle is not supposed to get you further in your career. It will not provide further knowledge or help to increase your value as a member of society based on your training. Try comparing this with something else - I’d be more inclined to listen about it. Furthermore, the percentage rate on a car loan is based on your annual credit score, and is normally a fixed rate. This is not necessarily so for a student loan.

The fact of the matter is that federal student loans have an extremely low interest rate are are the best type of loan a student can have. If you took out Private loans then sorry for you those interest rates are crazy high, but that amount was figured at an amount that someone (you, parents etc) should have been able to contribute to your education, wastefull spending is no justification for these "harrassing" calls.

You are correct - Federal student loans *do* have extremely low interest rates, and ARE the best type of loan a student can have. However, many schools do not differentiate at the time of signing which type of loan they are having you agree to - legal or not, this is the absolute truth of the matter. In addition, truth in lending laws are regularly suspended when requesting student loans, and interest rates on private school loans are not required to be disclosed until AFTER the paperwork has been signed.

Further, as for an amount that either my parents or myself “should” have been able to contribute to my education… I was 30 years old when I requested the loan - well past the age that my parents income would have been looked at. In addition, I had no job, no income, and owned an 11-year-old Ford Festiva when I signed the papers - I had NOTHING to base an amount on. What sort of “wasteful spending” are you talking about? Rent? Food? Electricity? Am I expected to live out of my car and eat nothing for days on end in order to pay back my loans? I think not. NO ONE should be forced into that type of situation, yet Sallie Mae places thousands of people into similar situations each year, all in the name of “bettering” and “helping” people.

If you borrowed enough money to make a $500 / mo payment your job should reflect that. I borrowed 40k myself make $9/hr and can still find plenty of money to live and pay every bill i have. Stand up be a man and adjust your lavish lifestyle back to normality.

You are able to make it on $9 per hour? And still find plenty of money to live on and pay every bill you have?? REEALLY? Let’s do the math here, bub. Let’s base it on a standard 40 hour work week and see what’s going on here:

$9/hr x 40 hrs x 2 weeks = $720 x 70% (what you’ll keep on avg after taxes) = $504

So, you make a total of $504 every two weeks… An average of $13,104 for the year…

Now, let’s look at interest - we’ll give you the benefit of the doubt and say that you’re annual interest rate on your $40k loan is at 6%. That’s an additional $2400 per year. Let’s say you pay $500 per month for you’re loan. That means at the end of the year, you’ve paid a total of $6000 - $2400 of which is that interest, and the other $3600 in the actual loan. Which is really good, considering. I must say, I have to applaud you - you’ll be out of debt at that rate within 13 years of the original borrowing date - if you continue on and NOTHING causes you to lose your current situation…

Also, if you pay $500 per month for you’re loan, you have a total of $546 each month for everything else. It’s nice living with your parents rent-free, isn’t it… Because that’s what’s going on here. Let’s be honest - even in the cheapest states at this point, rent for a 1 bedroom averages about $300 per month. Even if you have roommates, you still end up paying about $250, if not $350 per month, just for your rent - and then there’s the electricity and food to go along with it.

As for a “lavish” lifestyle, let’s really look at what I own/have vs. what I WANT… I own nothing - or at least, nothing of any real value. I have no car, I have no house, I have no major appliances. I have a computer that is aging into antiquity as I type this, which I had before I got the loan… I have A cell phone with no extra frills because it’s necessary for me to have a way to contact others due to work/baby/bills/family. I have ONE splurge that I give myself every month, which is the cable internet, because I do work from home on occasion, and need the speed.

Did you even READ anything that I’d written about how much I was paying? Or what my interest rate was at the time that I decided to actually DO something about it? They had me sign paperwork with me agreeing to pay on a loan with 18.9% interest! That’s usery, plain and simple. They bent me over, and without even a lick of KY or a drink offer afterwards, Sallie Mae totally screwed me. Just as they have thousands of others.

As for me “standing up” and “being a man”, that would be rather difficult, since I’m a WOMAN - again, if you’d read any of what I’d written, you’d know that. Stupid git.

I would imagine you have used forbearance over and over which has only capitolized your interest probabl doubling your loans by now. Word of advice if you havnt already. START PAYING anything will slowly eat away your debt, may not stop the calls but will obviously help.

Yes, I have used forbearance. I’ve had to… Between not having a job that paid enough to even cover rent for about 5-6 months, and then finally getting myself back onto my feet enough to pay my basic utility bills and rent, Sallie Mae has been routed to the back burner a few times - they didn’t like it, but that’s the way it was. The fact of the matter was (and still is), paying “anything at all” was not going to “slowly” eat away at my debt - not at the interest rate that it was at. I wasn’t even paying a THIRD of the interest rate per year before I got them to re-negotiate and lower it. The level of absurdity both of Sallie Mae, and of your continued diatribe of noxious vomit leave me relatively speechless, and I only continue on with this to help others who I KNOW read this to understand exactly what they’re up against.

As for the calls stopping, that’s easily solved with a threat of a law suit via a faxed letter to their legal and customer service team (see a prior entry here to find out how). Legally speaking, as a company, Sallie Mae cannot call you more than once every 24 hours on your debt, and cannot call you names, cannot threaten you, cannot threaten your family or work, and cannot otherwise demean you or your character at ANY time, regardless of the amount of money that you owe them. Period. End of story. If they do, and you send them written notice, and they continue, you can sue them for harassment.

You have to prove and "Undue Hardship" to get any legal help for student loans. These loans are created to be given easily to students to get them the knowledge they need to succeed, for that reason they are incredibly hard to dismiss. Your choices are A: Permanent and Total Disability or B: Death.

This falls under the “duh” category. HOWEVER, one thing you forgot to mention is that while student loans were *originally* created to be given easily to students to provide opportunity to increase their potential and succeed in the workplace, the reality is FAR different.

Sallie Mae has made student loans into a multi-billion dollar for-profit business, specializing in the default collection of loans that they themselves, through multiple “bank” names, have provided, at high interest rates and even higher re-payment costs. It is not what those who originally created student loans EVER envisioned, and I’m sure that they are horrified at the knowledge that a company is preying so viciously (not to mention greedily) on people’s lack of knowledge by providing such misleading information like you’re giving here. You have been uncovered, found out, and proven to be a fraud. Try again.

~M

2 comments:

Joie Rey said...

I am so glad I found your blog. Your story sounds exactly like mine! I live in San Francisco in a studio, nd my rent is half my monthly salery. When I talked with Sallie Mae today, they offered to lower the monthly payments (interest) but only for the first 2 years. Any news on the lawsuit? Please let me know.
Thanks! JR
joierey@gmail.com

Champcar said...

Glad I found this.

I currently have a SLM loan with a payment of $1100 a month on top of $400 a month in other student loan payments. That's all before rent and other means of living. I take home $1600 a month at my job. I can't even begin to afford my loan because of SLM's insane interest rate.