The Dangers of Sallie Mae

Emailed just recently...

2009-03-26T08:26:00.000-07:00

I just got this in my inbox today... Please do join up with them. I have spoken with the law firm, and have done research on them - they are on the up and up, and are working hard to stop Sallie Mae from continuing on with their outrageous policies and procedures.

www.jameshoyer.com
salliemae@jameshoyer.com

As you may know, the James Hoyer law firm filed a class action lawsuit against Sallie Mae in December 2007 in connection with its underwriting of private student loans.

As you read this e-mail, the US Department of Education is reviewing bids from six companies that want to win a lucrative contract to service federal student loans. Among the final six is, of course, Sallie Mae. The awarding of this contract will be made soon.

Our investigation has led to thousands of complaints from borrowers about Sallie Mae's abusive and grossly mismanaged servicing and collection practices. These practices negatively impact millions and must be addressed by the Department of Education.

If you want to stand up against Sallie Mae being awarded this contract, we urge you to contact Nicholas Chung or Mike Whisler, the Department of Education Contract Specialists acting as points of contact on this issue. Their contact information is as follows:

NICHOLAS CHUNG Phone: (202) 377-3635 E-mail: nicholas.chung@ed.gov
MIKE WHISLER, Phone: (202) 377-3450 E-mail: mike.whisler@ed.gov

We urge you to contact these people NOW, as well as your representatives in congress and the senate to share your personal story of how you have been abused and mistreated by Sallie Mae. Let them know that you will not sit quietly by while the government rewards a company that has caused so much harm to so many people. Staying quiet will not help anyone.

Please join the Facebook group: FINAL SIX - Student Loan Servicing Job Up For Grabs (http://www.facebook.com/group.php?gid=60098379849) so that you can share your contact with the decision makers and tell other people about this very important issue.

Checking in (From Alan Collinge)

2008-09-03T14:57:00.000-07:00

Hey Everyone,

Welcome to the new members. We are picking up members at an accelerated rate now, which is good. I can't stress how important it is that we seek out others in the same boat, and band together.

1. We were featured again on Fox Business News on Friday. The piece was highly antagonistic, and even slanderous at one point. Nonetheless, I feel that we held our own, and made at least some of the important points that needed to be made. The link there is:

http://www.foxbusiness.com/search-results.html?searchString=student+loans&searchType=news

2. CNN ran a piece featuring our members today. Unfortunately, I haven't been able to find it on the web. Anyhow, thanks to Peter, and others who stepped up to be interviewed for this piece.

3. I hope you will please consider this: Now more than every, your financial contribution to the Student Loan Justice PAC is very important. If everyone receiving this donated a modest amount (say, $20-$40), we would be in great financial shape to begin to have a real influence on the Hill.

That's it for now. Keep fighting, and keep us posted.

Hey look! Trollers!

2008-08-14T21:31:00.000-07:00

Yeah, apparently the good ol' boys (and possibly girls, too) from Sallie Mae are out in force today, trolling for those of us who are posting about our issues with their underhanded tactics.

They're trying to claim that we lead extravagant lives, refuse to pay our bills because we're irresponsible, and that we should have read the fine print to begin with.

They tell us that we need to simply buckle down, quit paying for that brand new car we just purchased, and give up the house we just put a huge mortgage on, and lead decent, bill-paying lives - oh, and pay up and on time to Sallie Mae because we should have known better than to expect we could get away with not paying our bills at all.

I don't know about anybody else, but I don't have a new car. Hell, I don't even have *A* car, let alone a new car. As for the house, I live in an apartment that my now-husband had been living in when we got together. He's been here now 8 years... and we don't intend on moving not because the rates are good, but because moving is above our means.

The fact of the matter is, these wonderful trolls are telling us everything that we have told ourselves while we beat ourselves up, trying to figure a way out of the financial mess that we've gotten into. Regardless of who signed the paperwork, and who agreed to do what, the bottom line is, we are stuck with high interest rates, exorbatant monthly payments, and no recourse to lower them because the company is having too much fun collecting from our sorry butts to even think of assisting us.

We have had to choose between paying rent or paying our student loan. We've had to, at times, choose between paying for food or paying our student loan. We aren't talking about the payment on the brand new Jag, or the new 4-bedroom house. We're talking basic necessities that Human Rights activists have been lobbying for years to get people in third world countries. Housing, Food, and basic medical care. When we must choose between one of these things and paying a student loan, there's something wrong with the system - especially when we could do all of it IF we were allowed to work out a more reasonable payment plan than $500-$700/month - and 80% of that being interest!

Honestly, I hope that Sallie Mae is paying these people a good amount of money for surfing the net in hopes of bullying us more. And I hope that somehow, that money helps salve their conscience after they read what their own company has done to thousands upon thousands of us without a lick of remorse. And I hope that someday, somehow, revenge in the way of sweet, sweet Karmic justice, will serve a HUGE helping of crow to these people for even THINKING that this was an ok job for them to follow through with.

Meanwhile, I'm going to set comments to members only - it means that you will HAVE to identify yourself before you can post. While at times I have found these trolls to be amusing, it is tedious and tiresome at this stage.

~M

Update from Alan Collinge

2008-08-12T09:21:00.000-07:00

Hey guys,

So at least 2 dozen of our members have been interviewed over the past three weeks by a ton of papers, including the NY Times, Seattle Times, Wall Street Journal, Illinois Times, the Journal Sentinel, Chonicle of Higher Education, and a few others. Also, our members have been interviewed by Tavis Smiley, CNN, and a couple of local TV stations, one of which has aired. So far, however, nothing has made it into ink. We're also booked for some radio show in September in the Silicon Valley area. So these guys are basically sitting on the stories. My hope is that when the NY Times thing goes, the others will follow their lead, take their stories of the shelves, and publish.

In the meantime, keep pressing the issue with local reporters.

Also, there's been alot of people wanting to have a forum to meet and discuss with other borrowers. We tried this on Yahoo for a year or so, but the chatroom got inundated by lurkers working for the student loan industry. However, I have created another such room on Google. [please contact me privately for the link, to avoid being spammed or trolled too early... ~M]

There are currently no members in this group, so hop on in, and get a discussion going if you wish! This is a public forum, so we can expect it to get overun eventually, but for now it is completely safe.

Regards,

Alan

Recent postings...

2008-08-11T10:24:00.000-07:00

I've been getting a LOT of comments and emails recently regarding Sallie Mae and their treatment of their debtors. The following are comments that have been made in just the past 5 days on both my "personal" blog, and on this one. I'm posting them in an actual blog because I don't want other readers to think they're alone. You're not. You are part of a much larger group of people, all of whom are repeatedly having issues with Sallie Mae as a lender. You are not alone, you are not a horrible person for asking for understanding from them, and you are not the only one getting flack and poor customer service when you do so.

There is a reason that Alan Collinge started the PAC - to help take the blinders off of society, and make known Sallie Mae's dirty little Million-dollar secrets. There is a reason why they make millions of money off of defaulted loans, and give their CEO's raises in excess of 5% per year - on an income that's already 6 or 7 figures. There's a reason why according to opening comments made in their 2003 Annual report, Former CEO (Now Chairman) Albert Lord (who with his wife personally contributed over $250,000 to senators and Congressmen in support of education legislation in just the last election cycle) boasts that the company's 29% core cash earnings-per-share growth could be attributed largely to fees collected from defaulted loans, as well as loan origination growth.

Their collectors are bottom-feeders, who will do anything to suck the American people dry however they possibly can. Their "customer service" people are less-than-human, who aren't interested in anything but their commision for getting payments regardless of the harm inflicted upon the debtor.

Please review these comments and emails, add your own if you wish, and go http://www.studentloanjustice.org . Share your story, contact your local congresscritter, make a newspaper or local magazine listen to you - shout on the streetcorner if necessary, even. Just do something to make yourself - and others- heard. If at all possible (and I know, it's hard to find the extra quarters for laundry, let alone something else), make a donation to the cause. Alan has been funding this venture largely on his own, and has been doing so since 2005. Recently, he quit his job to devote his time soley to this cause. He makes NO money doing this, he does this for everyone who has been (and will be) screwed up and/or over, by student loan lenders like Sallie Mae.

"First of all, I appreciate the work that you have put into chronicling your issues on this website. Thank you.

"What I wanted to know is how much time has salliemae been taking to respond to inquiries to the pr department, and with how much consistency?

David"

"Hi, I stumbled upon your blog when I was surfing 'SALLIE MAE RIP OFF' on the internet after getting pissed at them again. I really enjoy your insightful and intelligent commentary.

"I don't have any where near the same amount of problems as you or some of the other people I've read about do but I feel like me time is coming.

"I was wondering if you had any information on the terms "Adjusted Monthly Income" and "Discretionary Income". I am filling out economic hardship paperwork now but I make a little too much in my Gross Monthly Income to qualify. I live in Los Angeles and I can tell you, I can't afford a $400 payment each month on top of my normal bills, rent, gas, food, health insurance and so on. I know other people cope by using credit cards but I REFUSE TO LIVE ON CREDIT!!! If I can't afford it than I'm not doing it! I don't even drive my car except to and from work!

"I know I have a fight on my hands with Sallie Mae but I was hoping you could give me some advice or point me in the right direction.

"Thanks,

Joyce"

"Other than the 8 to 12 phone calls I and my 80-year old parents receive on our phones every day, what else can I expect from Sallie?
Anonymous"

"I too just had a terrible experience, they are calling everyone in my family even people I don't talk to and I have an agreement with them that I was to make a payment. I called to complain to a supervisor named James Carter. I told him I was calling to make a payment as I promised and that I wanted the harassing calls to stop or we will have to get an attorney. He said this " Let me get this straight. You are going to get an attorney. Attorneys cost money. Which you obviosuly don't have or you wouldn't be late or had to get a cosigner on your account because your credit wasn't good enough to get your own student loan. Am I getting this right? Talk is cheap and we will call you every hour on the hour until you deal with this." I asked his name and he said "James Carter... now make sure you write it down now!" I hung up on him and my husband called him back and said I thought you work for Sallie Mae, yet someone calls in to make a payment and you harass them to the point they have to hang up. He said " i could care less if she makes a payment, I wont lose any sleep at night". You had to hear the tone of his voice. It was like that sneery. I totally pictured that this guy is some short, bald guy, with a small you know what, who abuses his employees and his power. He cheats on his wife, his kids hate him, he prob. tries to look down the shirts of all the women in his office when he isn't talking down to them and intimidating them. So I had to call a different department to make a payment. My suggestion to everyone is this. RECORD YOUR CALLS!!!! I should have let the asshold keep going as I would have had more abusive comments because that is what he was doing. It was abusive and harassment and I am reporting them to every agency I can find. And if Sallie mae doesn't repremand this guy or fire him, I will default on my loans and leave the country. I would rather live in a box then let those people get one cent from me if they allow this man to abuse people like that. His name is JAMES CARTER and he is in the repayment department. I think everyone should call JAMES every hour on the hour and to tell him he is an asshole. lol

Dani"

"Sallie Mae harrasses my husband several times a day. Basically the same as all of the above, but they also call MY dad several times a day and he has absolutly nothing to do with my husband's loans. They will not speak to me at all even though when the loans were first set up; it was based on my income-he did not work at the time. He had grants that were returned and he was forced to have his Mother cosign for supposedly one loan for like 3,000 and it turned out to be 9,000 and gave her the privilage of sallie mae calls reguarding all of his loans. Our income has declined by a lot because the place I was working closed and he STILL hasn't found a job to pay for all of his ITT Technical associates degree$50,000 DEBT. They call or the computer calls and it's not a once a day thing, more like 5-6 times a day and try for foreberance and whatever else "help" they offer but our income is to low to qualify for any of it.

Anonymous"

"Sallie Mae is a sink hole, both monetary and psychological, for anyone who wants to further their education. I've been able to keep up with my payments of apprx. $600/month ONLY because I moved back in with my parents after graduating with an 18mo. degree.

"I never found a job in my field, as the school I had gone to over-exaggerated on the availability of jobs in legal administration. I work one full-time and one part-time job, and the full-time paycheck is sucked up by SM every month. There is no way in hell i'd be able to pay for my own room and board without finding a LAA job, and even then money would be tight.

"So, I joined the Navy, scored well on my asvab, and was given the option of having the federal portion of my loan paid off by them in exchange for a 6 year service agreement. Since the federal bit is the largest part ($19k out of $27k), I agreed and started filing my LRP forms.

"SM, my lender, is under obligation to release my loan information on my request, especially under these circumstances. You'd think they would be more compliant since they are getting a nice chunk of change handed to them at once, but they keep sending my LRP forms back saying they cannot release my loan information to me or anybody else if they didn't want to. I guess they really don't want to lose out on the interest.

"I've got about two weeks to file these papers, or I lose my LRP bonus. My next step will be talking to JAG about getting a warrant or subpoena or SOMETHING to get them to release my info.

"Its probably not something you'd consider after reading your SM blog, but I think they'll be able to help me. I'll comment again later to let you know if they end up complying or if I end up losing my bonus.

Josh"

As you can see, Sallie Mae has stooped to even attacking and denying assistance to those who would defend our country, who would take up arms against an enemy, and literally give their life if necessary to help preserve American freedoms. How self-centered and asinine can you get?

Again, please go to http://www.studentloanjustice.org and share your story, and donate if at all possible. Contact your local newspaper, news channel, go to a local school and hand out flyers telling your story and letting them know what Studentloanjustice stands for. Do what you can, and let yourself be heard.

~M

Frauds and notations...

2008-06-10T13:06:00.000-07:00

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

Article in the Chronicle of Higher Education

2007-08-07T09:51:00.000-07:00

From the issue dated August 10, 2007

Nonprofit Lenders, While Helping Students, Help Themselves
Questions arise as Congress considers giving the state-based agencies an advantage over their competitors

By PAUL BASKEN

Janice Frazier, a 56-year-old single mother in Silver Spring, Md., has been struggling to pay back a $7,000 loan that she used to help her daughter attend Tufts University.

The nation's largest lender, Sallie Mae, spent six years ignoring her attempts to negotiate its share of the debt and win a deferment on medical grounds, Ms. Frazier says.

But the Pennsylvania Higher Education Assistance Agency, a nonprofit lender known as Pheaa that is run by the state and operates nationally, was even worse, she says.

"Eventually I had to begin sending everything certified mail and even had to file a complaint with the Better Business Bureau of Maryland to get AES [Pheaa's commercial arm] to admit they received my fifth deferment application and actually grant me a deferment," says Ms. Frazier, who now owes more than $15,000 from additional interest and fees. (Spokesmen for both Sallie Mae and Pheaa say they take care to resolve customer complaints but cannot comment on the details of Ms. Frazier's case, citing privacy laws.)

Despite some complaints about the practices of state-chartered lenders like Pheaa, lawmakers are looking to encourage their growth as Congress and the states tackle problems of corruption and profiteering in the student-loan industry.

There is little dispute that the nonprofit lenders are more generous with their income than are their for-profit counterparts. Pheaa earned $191.5-million last year, and gave 91 percent of that back to students in such forms as grants, scholarships, and educational programs. Sallie Mae earned $1.2-billion and donated about 1 percent of that through its charitable arm.

Less clear, however, are other benefits that nonprofit lenders might provide individual borrowers and taxpayers. Many use the same aggressive collection techniques seen at for-profit lenders. Some spend lavishly on executive salaries and vacation-style conferences. Some have relationships with for-profit partners that let those companies siphon off profits.

And many nonprofit lenders lobby alongside their for-profit counterparts in support of the federal government's bank-based system of student lending, despite lawmakers' arguing that the less-popular alternative — the Education Department's direct-loan program — is cheaper for taxpayers. Those efforts have some college and student lobbyists wondering if the nonprofit agencies deserve extra breaks from the federal government.

"I applaud them for whatever good they do at their own cost," Barmak Nassirian, associate executive director of the American Association of Collegiate Registrars and Admissions Officers, says of the nonprofit lenders. "When the good they do is at our cost, maybe we ought to decide what good needs doing."

A Reward From Congress?

Congress doesn't appear to share that concern. A budget plan approved last month by the U.S. Senate would cut the federal subsidy to lenders in the bank-based loan program by 0.5 percent. The plan would cut nonprofit lenders' subsidy by only 0.35 percent.

The House version would cut subsidies for all types of lenders by 0.55 percent but give the nonprofit agencies additional fee breaks that would create an advantage similar in size to that of the Senate bill.

The chairmen of both the House and Senate education committees, Rep. George E. Miller, a California Democrat, and Sen. Edward M. Kennedy, a Massachusetts Democrat, respectively, declined repeated requests to explain why they support the breaks for state-run lenders.

"A number of committee members on both sides have effective nonprofit lenders in their states," says Melissa Wagoner, a spokeswoman for Senator Kennedy, "and it was important to those members that the Senate bill recognize them."

Others, including some traditional Democratic allies on student lending, do not agree. They point out that the nonprofit lenders are already exempt from paying income tax, and they can issue bonds that are tax exempt, both of which give them advantages over for-profit lenders.

"It doesn't make economic sense to provide them yet another extra subsidy," says Robert M. Shireman, a former education-policy adviser in the Clinton administration who founded the Institute for College Access & Success, an advocacy group in Berkeley, Calif.

Giving nonprofit agencies more money "to do the same job as more-efficient for-profit lenders," says Mr. Nassirian, "is not only economically illiterate, it sets the stage for whole new round of waste, fraud, and abuse."

100-Hour WorkWeeks

Congress is reacting in part to such incidents as the estimated $225-million that Sallie Mae has paid its chairman, Albert L. Lord, since 1999; the discovery that several college student-aid directors as well as an Education Department official were holding stock in a for-profit lender, Student Loan Xpress; and the corporate giveaways at events like the annual conference of the National Association of Student Financial Aid Administrators.

But some of those same activities, albeit on a smaller scale, can be seen among nonprofit lenders, who hold about 20 percent of the federally guaranteed student-loan market.

Tony Hollin, as chief executive and chairman of Educational Funding of the South, a nonprofit student-loan company based in Knoxville, Tenn., and known as Edsouth, collected more than $1-million in salary in both 2003 and 2004, according to federal tax filings.

Edsouth, which says it is the nation's 13th-largest holder of student loans, paid Mr. Hollin $570,461 in 2004, when he reported working 50 hours a week, according to the IRS Form 990 filed by the company. That same year, he was paid $540,000 while working 50 more hours a week as president of Educational Services of America, an affiliated Knoxville-based nonprofit agency that helped manage student loans.

Mr. Hollin also received more than $1-million from the two companies in 2003, also while reporting 50-hour-a-week duty at both jobs. Mr. Hollin left Edsouth after a corporate reorganization last year, becoming chairman of two for-profit companies, Edfinancial Services and Edamerica, that had been part of Educational Services of America.

The reorganization was designed to shed a part of Edsouth that "was a very commercially oriented activity," says Edsouth's president, John E. Arnold Jr. "That salary is not here any more, I can assure you that much," Mr. Arnold said of Mr. Hollin's compensation.

The tax filings also list Mr. Arnold as working a combined 100 hours a week in 2004 — or more than 14 hours a day, seven days a week, all year long — when he collected more than $300,000 from the two nonprofits. "I probably did, yes," work that many hours, Mr. Arnold said. He said he now averaged about 12 hours a day, "not including travel time."

In other cases, nonprofit lenders help outsiders enrich themselves. A leading example is Sallie Mae's relationship with USA Funds, a loan guarantor staffed mostly by Sallie Mae employees. USA Funds enjoys nonprofit status, yet pays $250-million annually to Sallie Mae, according to USA Funds' tax filings.

The nation's largest nonprofit holder of student loans, the Brazos Group, of Texas, pays for the services of a law firm owned by the president of Brazos, Murray Watson. The fees that Brazos pays for legal services are determined by an independent consultant, "who told us the high, the medium, and the low on legal fees," Mr. Watson said. "And we try to stay below whatever the medium fee is."

The nonprofit lenders also have annual gatherings with vacationlike elements at a time when the National Association of Student Financial Aid Administrators, under political pressure, is scaling back its meetings.

The Education Finance Council, which represents many of the nation's nonprofit and state-chartered student-loan companies, holds its annual conferences in resort locations like Henderson, Nev.; Rancho Mirage, Calif.; and Scottsdale, Ariz. The council's president, Kathleen Smith, defends the events as focused on work. "I am confident in the respect and care that my members have for the students in their states," she said.

Guaranteed Return

Nonprofit lenders have also helped themselves, and their executives, through a federal law meant to help protect them at a time when the cost of making loans was high.

In the 1980s, when the economy was in the doldrums, Congress allowed nonprofit lenders — those that finance their loans with tax-exempt bonds — a guaranteed return of 9.5 percent. Congress eliminated the 9.5-percent guarantee in 1993 but grandfathered in loans already made. Several state-chartered nonprofit lenders, however, maintained that the government's regulations allowed them to keep receiving the 9.5-percent return by simply refinancing bonds issued before the cutoff date.

Some loan companies collected at least $6-billion in additional federal subsidies, according to a 2004 report by the Institute for College Access & Success. Pheaa ranked second only to the National Education Loan Network, a for-profit student-loan provider based in Nebraska that had bought some nonprofit agencies, in the volume of loans it submitted for the extended 9.5-percent reimbursement, the report said.

For several years, the subsidies from the 9.5-percent program provided Pheaa with a "rather large portion" of its profits, Pheaa's chief executive, Richard E. Willey, told state legislators at a hearing in February.

Over those same years, Pheaa executives embarked on a spending spree, incurring expenses such as $45,000 to charter a Lear jet, and more than $860,000 on trips that included spa treatments for spouses and staff members, limousine rides, and falconry lessons.

The spending was first reported by The Patriot-News of Harrisburg and other news organizations in Pennsylvania that spent 19 months fighting for public access to the records. Pheaa spent $410,000 opposing the disclosure.

Pennsylvania is now among a few states that are re-evaluating the benefit that such entities provide their students. Gov. Edward G. Rendell, a Democrat, and some members of the legislature have given encouragement to persistent suggestions by Sallie Mae that it purchase Pheaa assets.

State Rep. Craig A. Dally, a Republican, while expressing support for Pheaa's mission, told Mr. Willey at the February hearing, "You've certainly caused some of your own problems."

This year in Missouri, Gov. Matt Blunt, a Republican, signed into law a measure ordering the Missouri Higher Education Loan Authority to sell some of its student loans to help pay for $350-million in college construction projects. That was short of the outright sale of the agency that had been under debate.

'Extremely Lucrative'

Even critics of some of the behavior of nonprofit lenders agree that they might be a better alternative.

Nonprofit lenders and servicers "tend to be more responsive" to students, said Alan Collinge, founder of StudentLoanJustice.org, an advocacy group.

Yet, he said, "All lenders, whether nonprofit or for-profit, are operating in an extremely lucrative environment, and are protected by largely the same sets of laws that provide little protection for the borrowers, and allow huge fees, and draconian collection tools for delinquent debt."

The nonprofit agencies do give more money to students than for-profit lenders do; most pay their executives less; and none have been found engaging in such practices as making payments to college administrators or helping colleges shape their enrollments to steer needy students into larger loans, said Jon H. Oberg, a former U.S. Education Department researcher.

Pheaa's profits are used for purposes like forgiving the debt of active-duty soldiers and encouraging the training of more nurses in Pennsylvania. Brazos runs seminars to help high-school students understand their loan options. Edfund donates to groups like the Orphan Foundation of America.

"The not-for-profits are obviously not clean on a lot of things," Mr. Oberg says, "and that's why Congress really needs to reform them."

Yet the nonprofit lenders could also be seen by Congress as allies, especially as students increasingly face the need to finance their education through the growing private loan industry, he said.

"That," Mr. Oberg says, "is where their tax-exempt privileges and so on could do students and taxpayers of the country a real service."

YOUR Oregon Rep!

2007-07-28T20:18:00.001-07:00

I have volunteered and been accepted for the position of StudentLoanJustice.org's Oregon State representative.

The biggest thing about this is that now there IS someone to talk to, here in Oregon, about student loan issues. I know from personal experience that it can feel very lonely (loanly?) out there, feeling like you're the only one with a financial hardship due to high student loans.

You aren't alone, though. One of the biggest things that is happening is a slow awakening throughout the country. More and more of us who are in the same boat are reaching out to one another and forming bonds and strength. It is that strength that can slowly topple corporate mountains like Sallie Mae.

I need your help, though, to get the word out that we are here, that we need more support, and that we can work together to change things.

We need people who are willing to copy and pass out flyers, post information, get meeting places set up, and be willing to work with me on getting the word out about this organization. We are grass-roots, so there's no funds - it's just us... If you have the ability to get interviews with local campus papers, free local papers like Willamette Weekly or The Mercury, or even The Portland Tribune, please do so - and let me know as well.

This can be something really big, and you can be a part of it, from the ground up.

I will continue to post my own journey regarding Sallie Mae here, and I will also be posting what I'm doing locally within the Portland area.

~M

Suggestions for those with issues...

2007-07-28T09:02:00.000-07:00

I've been getting comments requesting options that they might have regarding the horrible collection practices that Sallie Mae has instituded against them. I know, they're awful, and SM doesn't honestly have a leg to stand on. Regardless of prior comments that I've read about "due diligence", I've also consulted with the William D Ford institution (the Federal Government's answer to Sallie Mae), and have been advised that "due diligence" is superceded by the FDCPA.

Those representatives you speak with are front-liners. They get paid bonuses for each buck they make us cough up, and are trained to ignore the more polite virtues of discussion (as, I'm certain, you've found). They don't want to work with you, because that would mean they'd have to acknowledge their own humanity while working for a company that has none.

The following email is for a woman in the PR department at Sallie Mae. She is a very *nice* woman... I've spoken with her on the phone several times, and we've exchanged emails. She is prompt, polite, and is willing to both listen and get the issues heard at the appropriate level. What I do ask is that you PLEASE give her a chance. The front-liners are one thing, the higher-ups and those outside of the collection loop are another. That's not to say they aren't all part of the same company, only that their tactics are better.

With that said, prior to contacting her, you should do the following:

1. Utilize your fax machine and fax a copy of a "cease and desist" letter over to both customer service and the legal department (at SM, they're the same fax #, just fax it twice with two separate cover letters on it). If you want, go ahead and use mine as an outline, re-writing it to fit your specific information and issues. Make sure you bold those items that were violated, to clearly indicate to them what they have done wrong. Also, make sure that you clearly state that a transmission indicating "OK" is the same as Sallie Mae agreeing to your cease and desist request.

2. Document each additional phone call after you fax that letter. Legally, after you receive that transmission report, they can no longer call you more than once every 24 hours. Period, end of story. That's from the Federal Government, folks, so if you still don't believe me, go ahead and call the William D Ford foundation. They'll be glad to clarify that with you, just like they did with me.

3. Email Mary Fetter. MARY.FETTER@slma.com Again, she's a really nice woman, so when you email her, start from the beginning, and tell your story about what's been going on, from beginning to now. Let her know that you need to have resolution to this issue, because you are attempting to pay your loan, but you cannot succeed in doing so based on the demands that are currently being given by Sallie Mae. Request that someone contact you regarding working with you and your current income situation, so that you can avoid defaulting or charging off, and can also continue to live / eat / pay other bills.

Keep in mind: Even the higher-ups are mostly interested in getting your money. However, they have the ability to set up your loan so that you can actually afford to pay it off, rather than having a default / charge-off, and having you live out of a cardboard box.

Currently, there is nothing "technically" illegal that Sallie Mae is doing, other than the FDCPA violations. They can, as a private company, charge as much interest as they see fit, and re-configure loans around based on their own profit rather than your personal interest. Unless they have multiple FDCPA violations, or violations after the cease and desist letters, there is nothing LEGALLY you can do against them. There *is* a class-action lawsuit brewing out of FL, which I'm a part of, through James, Hoyer (see my linky goodness section). If you want to be a part of it, call or email them very soon - they want all the documentation they can get, so be prepared to either make copies and mail them, or fax them over - letters, emails, all the loan paperwork, disclosure statements, everything.

As far as bankruptsy is concerned, well... It's a major gray area. In order to file for bankruptsy and include your private loan with Sallie Mae, you must do so under proof of hardship. No lawyer that I know of is currently willing to pick up the case, so you'd have to do all the legwork, paperwork, filing, and court stuff on your own, at your own expense... Here's the (darkly) amusing part: If you can actually AFFORD to do all of this, you're not in hardship, and therefore won't be able to qualify for a bankruptsy judgement on your loan.

The courts look on private (or signature) Sallie Mae loans as a "school" loan. Period, end of story. The Federal Government look on these same loans and says "same as credit cards, we won't touch 'em". So, those of us who ended up with a signature loan, and didn't get (or weren't) educated on what it was prior to signing the paperwork, are stuck. The only way to get rid of it is to attempt to consolidate it with a home or car loan via a bank, and make sure they over-compensate you for the amount owed to Sallie Mae - since it takes 30 days for the loan payment to post, and meanwhile your interest is still accruing (something they WON'T tell you, either).

So, that's the current scoop. I ask that you please use Mary Fetter's email address wisely. Do not spam or threaten, but utilize it with a business-like approach. It is tempting to go off the deep end, however don't sink to their level. Keep your dignity, and keep working on getting a fair shake at paying your loan off.

~M

That's it, eh? We'll see...

2007-07-02T18:37:00.000-07:00

Got a call from the person who was processing my refinancing. They said they had "great news", and that it was refinanced at the lower rate, to make my payments $311/month. I seem to remember something about $250/month, so this is still high for me... I'm going to be calling Mr. Firestein and finding out what's going on. That and I still can't get an answer regarding the two final loan disbursement payments that were done 6 months AFTER I graduated and left school - one for almost $9,000, and the other for almost $4,000. No one at Sallie Mae seems to know what they are, only that it's "obviously" something that was owed and now must be paid for... Sorry folks, if you can't explain what it was to the person you supposedly loaned it to, then I can't be responsible for it.

Bleh.

~M

Interesting...

2007-06-05T08:39:00.000-07:00

So, talked with good ol' Barry yesterday, the Veep from Sallie Mae. He is willing to look at consolidating the loan, lowering my interest rate substantially (his words), and extending the loan out as far as possible to get the payments down to a reasonable level.

I'm to hear from a financial person today about what the terms would be. I'm going to ask for them in writing before I agree with them, and if they aren't reasonable, then I will tell them so.

I brought up the last 2 loans that were taken out, 6 months AFTER I was finished with school - he didn't know what they were, and said he would look into them. Since they were each over two grand, I feel they're significant enough, and I at least deserve an explaination of what the @#$%#$ it is - and if they can't give me one, then they need to remove them. Period. End of story.

Upshot of the discussion is that if I continue to have issues with the loan, I can call him directly.

~M

Awaiting yet another call...

2007-06-01T21:19:00.000-07:00

I have been going back and forth for a week or more now with the PR people at Sallie Mae. Seems that the interview I did with Business Week has perked some interest there. I got this email from Mary Fetter, the person I'd been speaking with, regarding contact with Barry Feierstein (the SM rep that Ben Elgin interviewed in the same interview):

I wanted to let you know that Barry Feierstein will be calling you this Monday, June 4. Barry is a senior executive at Sallie Mae and looks forward to talking to you in more detail about your student loan situation. He will call you on the cell
number you provided. Enjoy your weekend.

Sincerely,
Mary

I also got a voicemail from Mr Feierstein, letting me know he was looking over my information, and looked forward to working with me to "come to better terms" with the loan...

Meanwhile, I've sent out all of my paperwork that I've ever gotten from Sallie Mae over to James, Hoyer PA, the law firm in FL doing a fairly high profile fraud class action lawsuit against Sallie Mae. They were apparently intrigued by my story, and wanted to see the paperwork I had. I'm supposed to hear back from them sometime soon as well.

We shall see what happens on both fronts.

~M

Letter to a PR person at SM...

2007-05-19T16:29:00.000-07:00

So, the gal who contacted me from Sallie Mae FINALLY called me back (late) on Friday. The message was that she was still working on getting someone in a "supervisory" position to get back to me regarding my situation to help me "lower" my monthly payments... She invited me to write to her via email, so I did...

Dear [PR Person],

I got your voicemail on Friday. Honestly, to say that I'm disappointed with Sallie Mae so far is an understatement.

You have to understand that from the beginning, I have felt that Sallie Mae and its representatives have been less than up-front with me.

The private loan was approved by Sallie Mae via WCI, *knowing* that I had a less-than-$600 per month income.

The loan was then "sold" from Stillwater National Bank, a subsidiary of Sallie Mae, TO Sallie Mae...

The interest rate of anywhere from 13% - 18% was applied to my private loan throughout my time at school.

At my exit interview, I was told by the loan representative that the payments would be $450 per month...

Less than 4 months later, I was informed by Sallie Mae that indeed, it was not - it would be $554 per month.

I attempted at that point to consolidate my loans, but even though both my private loan and my FFELPS loan were under the same account number, only my FFELPS was consolidated. When I asked why only that one was consolidated, I was told the private loan COULDN'T be consolidated.

I attempted no less than 6 times to speak with Sallie Mae representatives to try and work with them regarding my income, and ALL SIX TIMES I was called names, told I had no rights, and told that Sallie Mae was not willing to take ANYTHING less than the full $554 monthly payments.

I attempted again to consolidate the private loan, both via CitiBank and via Sallie Mae. Both times, my request was denied... why? Because Sallie Mae had been dinging me with credit reports, AND I didn't make enough money to pay back the loan... The loan which Sallie Mae had, in my opinion, irresponsibly agreed upon in the first place.

I now make double what I did at the time my loan was agreed upon, but I still don't make enough money to consolidate my loan, move my loan to another bank, or pay the amount that Sallie Mae is requesting...

To me, this is the BIGGEST bunch of irresponsibility I have ever seen in a financial institution, unless you count the World Bank debacle.

I feel that, in light of everything that has happened, Sallie Mae should do the right thing and disburse the loan completely. If they had denied me from the beginning, KNOWING what my income was at the time, and KNOWING that I would most likely be unable to pay back the loan at all, I would not be in this mess. The choices made by Sallie Mae were irresponsible at best, and inexcuseable at worst.

I am available Mondays and Tuesdays all day, and Fridays until 1pm PST.

Thank you

We'll see what she has to say to that...

~M

BusinessWeek's take on the issue...

2007-05-11T21:53:00.001-07:00

by Ben Elgin

John Liles of Cleveland, Ga., dreamed of becoming a sports coach. He had lost his $9-an-hour job as a machine operator in 2005 as a result of a lengthy bout with diabetes. His illness hadn't stopped him from coaching his children's sports teams, however, and he hoped to turn the hobby into a career. He needed an associate's degree, so he signed up to study online with American InterContinental University (AIU).

To obtain loans, the school guided him to SLM Corp., better known as Sallie Mae. Liles, now 47, says he explained to AIU that he couldn't afford interest of more than 9%, and the school encouraged him to move ahead with the loan application. Several months into his courses, he says he was shocked to discover in a form Sallie Mae sent him that one of his loans, for $6,000, was growing at 18.1%. It would require monthly payments of $110 for the next 15 years, totaling $19,924. "I can't afford it," he says.

Cases like Liles' are proliferating as the cost of education has far outpaced the availability of low-interest loans whose repayment the federal government guarantees. With enrollment rising in trade schools, more lower-income students are relying on high-interest private loans, such as the one Liles received. "For hundreds of thousands of citizens, the worst mistake they ever made was to go back to school," says Alan Collinge, founder of advocacy group Student Loan Justice.

Many borrowers describe the loan process as opaque, saying schools and lenders don't explain interest rates or postgraduation payments. Some borrowers say they were unaware that private loans are different from less expensive federally guaranteed loans. "When you hear Sallie Mae,' you think of somebody's favorite aunt baking them a pie," says borrower Molly Cosgrove of Portland, Ore. "You don't think of high-interest loans." Once a federally sponsored organization, Sallie Mae became a fully independent corporation in 2004. It offers both private and federally backed loans.

After losing her $20,000-a-year job at a call center, Cosgrove enrolled in Western Culinary Institute in Portland in 2004, planning to become a chef. She says the school lined up student loans for her with assurances that the terms would be reasonable and her diploma would attract appealing job offers. She asked few questions. Today, Cosgrove, 33, has her degree—and $43,000 in debt, most of it accruing interest at 18.5%. Unable to get a job as a chef for more than $8.50 an hour, she went back to answering phones for $13 an hour. She owes Sallie Mae $553 a month but doesn't have anything close to that to spare. "I can't see a way out of the mess I inadvertently created," she says.

Career Education Corp. (CECO ), which owns both AIU and Western Culinary Institute, says it is not responsible for, and often not aware of, loan terms, which are agreed to by the student and lender. It adds that its schools inform students that private loans carry higher interest rates.

Sallie Mae says the terms of its private student loans are made clear in writing to would-be borrowers before any money is disbursed. "These are college students. At some point you have to read what you're signing," says Barry Feierstein, Sallie Mae's senior vice-president for private credit loans.

The lender says it recently capped rates on new private loans and is exploring ways to relieve the high rates facing some recent graduates. "We want people to have a fighting chance," says Feierstein.

Back-peddle much?

2007-05-11T14:22:00.000-07:00

So, there I was yesterday, working on my wedding dress at home on one of my days off. My cell rings, and when I look at the caller ID, it's a 703 number.

Hmmm, I wonder... Who would be calling me from out of state?

I answer, and lo and behold, it's Sallie Mae.

Now, while I'm getting mildly worked up about the fact that they've contacted me after I expressly told them NOT to, the person on the other line is reassuring me that this is not a collections call. In fact, her name is Mary Fedder, and she works with Sallie Mae's "communications department" (i.e. the PR people).

Apparently, due to the fact that I've been speaking with Businessweek, and the fact that they look particularly cruddy - and in light of the recent investigations that the government has begun due to their questionable practices, she was calling to find out if there's anything Sallie Mae can do to help me... Why? Because "Sallie Mae is dedicated to assisting all their customers, especially those faced with financial difficulties.".

Trust me, it was all I could do to NOT laugh in her face. I succeeded, barely, to contain myself as she proceeded to explain that, while she didn't have authority to access my account, and while she couldn't promise anything because she didn't have that power, she'd like to talk with some people to find out what options would be available to help me.

She suggested a co-signer, which I blew out of the water. I refuse to put any of my friends or family through what they've put me through - and further more, they can't afford the crappy terms anymore than I can. She also asked what I'd done to try and alleviate the situation - so, I mentioned the fact that I'd attempted to consolidate the loan to lower the interest rate and payments - and was refused... Because I didn't make enough money.

She says she's going to be getting back to me by next Friday. We'll see what she has to offer, if anything.

~M

New linky goodness...

2007-05-08T08:34:00.000-07:00

Thank you to the person who posted the information here. James, Hoyer, Newcomer & Smiljanich, a law firm in Tampa FL, is looking into further fraud issues with Sallie Mae. Please go HERE or visit the link list on this page. It's a simple process of filling out your information, telling your story, and hitting "send". Can't get much more simple than that.

From the information I've read on their website, they specialize in class action lawsuits and work on advocate cases similar to us Sallie Mae victims. It's time to put some more metal to the grindstone, and push a bit more.

~M

Progress... and yet...

2007-05-05T11:11:00.000-07:00

I received a call from the NY Times for an interview. The reporter was aware that I was being interviewed by Ben Elgin for another article of a similar genre. She asked when it would be out, so I forwarded her email to Ben and asked the question, with a suggestion that she ask him directly.

She then decided to respond with a "thanks, but no thanks" email stating that since I was in contact with another reporter, she was going to pass on interviewing me. WTF? I mean, it's not as though she didn't know from the very beginning that I was being interviewed. Personally, I think she was simply trying to find out when Ben's would be out to try and beat him to the punch-line. I doubt she had any serious intention to interview me. Sad.

In other news, however, apparently Ben is getting responses from Sallie Mae, as well as from WCI, the college I graduated from. I'm mailing them my "permission slip" today which allows him access to my financial records, etc.

Also, the government has finally decided to open its eyes and see that there's something questionable about Sallie Mae's collection and debt practices. There's a full-scale investigation going on at this point to find out what happened. To quote Fark.com: "Suck it, Sallie Mae!"

To close, I will quote a part of something Ben asked me in our interview...

"You seem to have a good, positive attitude about all of this. I mean, you laugh, and you're smiling a lot through all of this. How are you able to do that?"

"Well, you have to laugh at the ridiculousness of it all, honestly. If you don't, you'll simply spiral down to the depths and never come out again. I've been there twice before, and I don't want to do that again. I have a family that counts on me, and I don't want them to see me that way. Honestly, you have to have faith that somehow, your actions will eventually bring about change - if not for you, for someone else."

~M

And then...

2007-04-23T20:04:00.000-07:00

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

2007-04-17T11:08:00.000-07:00

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...

2007-04-13T20:28:00.000-07:00

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

Sent it in a letter...

2007-03-17T17:54:00.000-07:00

So, I've sent an email to the Oregonian requesting that they write a story regarding the issues people have had with Sallie Mae - I sent links along with it to Student Loan Justice, Sallie Mae Beef, and several other sites on the web including my own.

I haven't heard back from them yet, but it's only been 24 hours. I'll keep watch and if I don't hear anything in a week, I'll send another copy of it. I'm also going to send out a paper version to them, as well as to every local news agency here in town. Bwa ha ha ha ha! I'm GOING to be heard, and I'm determined that everyone else should be heard, too.

Dammit.

~M

BBB Complaint copy...

2007-03-14T14:05:00.000-07:00

The BBB that will handle your complaint is:
BBB of Eastern MA, ME & VT
(Natick, MA)
235 West Central St, Suite 1
Natick, MA 01760-3767
Phone: (508)652-4800
Fax: (508)652-4833
Email: info@bosbbb.org
Web: http://www.bosbbb.org

The following information has been received and sent to be processed.

You can check on the status of your complaint anytime on our web site.

Your password (used to access the case online) is 075CEDA7

You can check on the status of your complaint anytime on our automated phone system by calling 508-652-4800.

STATUS SUMMARY

Case #: 134758
Date Case Opened: 03/14/2007
Status: Open
Days Open: 1

COMPLAINT
Customer

Complaint Type: Consumer to Business
Salutation: Ms.
First name: MXXXXXXXXX
Middle Initial: A
Last name: XXXXXXXXXXXXXXXX

Address: XXXXXXXXXXXXXXXXXXXXXX
City: XXXXXXXXX
Province or State: OR
Postal or Zip code: XXXXXXXX
Zip + 4:
Country: USA

Home phone: XXXXXXXXXXXXXXX
Work phone: Ext:
Fax:
E-mail: merripanbaval@comcast.net

--------------------------------------------------------------------------------

Direct Complaint to

Firm ID: 0000031959
Business name: Sallie Mae Tuition Answer Loan
Address: 50 Braintree Hill Park
City: Braintree
State: MA
Zip code: 02184

Business phone: 800-749-9100

--------------------------------------------------------------------------------

Complaint Information

Date purchased: 02/21/2003
Zip Code of purchase location:
Store/Establishment #: School - WCI
Date of problem
first occurred: 05/30/2005
Have you complained
to the business: Yes
If yes whom did you
complain to
(last name): Legal Dep
Purchase price: $23,000.00
Amount in dispute: $11,0000.00
Product or service involved: Student Loans
Brand name or manufacturer:
Model name or number:
Order, contract or
account number :
Salesperson's name:
Primary Nature of Complaint: Credit, Billing or Collection Issues
The company has unethical collection practices

--------------------------------------------------------------------------------

Brief description of problem:
Company has repeatedly failed to follow the Fair Debt Collection act in collection processes. They have been verbally abusive, have called upwards of 8 times per day to harrass me, and have attempted to take payments prior to the agreed upon payment date. In addition, they have repeatedly refused to work with me regarding reduced payments due to hardship, and have continued to harass me for payment even after I have informed them in writing to no longer contact me except by mail.

--------------------------------------------------------------------------------

Settlement sought:
The company has a responsibility to treat me with respect and to stop harassing me. They should be willing to work with me based on my income, and should not continue to lay late fees and high interest on unpaid portions of partial payment amounts, when they suggested them, and have agreed to these partial payments due to my income. I should not be penalized because my income happens to be lower than they want me to pay. I feel that the company has the responsibility to lower my percentage rate to a reasonable amount of BELOW 10% and make it fixed, as well as lower my payments permanently to a reasonable sum of money - around $160 per month, based on my income.

Primary settlement type: Billing Adjustment

And here we go again...

2007-03-14T09:43:00.000-07:00

As of 9:42 AM PST today, my cell phone rang AGAIN - and AGAIN, it was Sallie Mae... I picked it up, heard the recording, and hung up.

I am going to be purchasing a recording device for my phone as soon as I possibly can afford to, and will be making sure to check my cell phone carrier for the list of all incoming calls... There are three in specific that I'm looking for.

1-317-595-1440 is a toll number for them

1-866-656-3422 is a toll-free number for them

"Unknown" is the unlisted phone number for them

I'm also going to be requesting a listing of all the dates and times that Sallie Mae has attempted to access my bank account.

Anyone know a reputable lawyer in the PDX Oregon area willing to take on this scum of the earth?

~M

Priceless...

2007-03-14T09:29:00.000-07:00

I just received this in my email today, after faxing over the cease and desist letter to their legal and complaints department yesterday...

Dear Sallie Mae customer,

While attempting to contact you about your Sallie Mae student loan, we've found that your contact information on file is incorrect. Please take a moment to help us update our records.

Updating your address and phone number online is easy. Please click here and log into Manage Your Loans.

If you wish to speak with one of our customer service representatives, please call us at
800/766-7242 with your new contact information.

Thank you,

Jennifer Martin
Sallie Mae Servicing

To Anonymous - FWIW regarding Sallie Mae

2007-03-14T08:13:00.001-07:00

Originally posted 03/12/2007, in response to a particularly stupid and asinine comment made at my other blog regarding the prior post:

Yes, you're right - it was all my fault that I'm in the financial bind with Sallie Mae that I'm in today. Gee - I'm a horrible person for being SO stupid and SO at fault.

I chose to go to school and try to better myself and deluded myself into thinking it was the right course of action.

I chose to go with Sallie Mae because I chose NOT to educate myself about other options that could have been available.

I chose to NOT go into the field of culinary arts because I didn't want to live out of my car, since the pay scale was at minimum wage and rent couldn't be met with it.

I am currently choosing to repay back what I *can* - even though I honestly can't afford it - and it's my fault as well.

You're right. Everything I did was my own fault, and it was NEVER, EVER the fault of Sallie Mae or it's ethical behavior or not. Sallie Mae has done NOTHING but do what I asked them to do, and it's my fault that I asked them to do anything...

In fact, apparently, according to YOU, what I should be doing is encouraging people to get themselves in debt with Sallie Mae to the utmost, because they're SO wonderful!

What I *SHOULD* have done was to continue down the road I was going and eventually end up either on the dole or flipping burgers at McDeath's.

And I *am* trying to fix the situation and, as you put it, "what needs to be done to get out of this mess and move on, lesson learned."

Regarding what I've written in my blog here, just remember - I put my own thoughts down and own them as mine. Who the FUCK are you to go after me and whether I was right or wrong on an action in the first place? You don't know me, you don't even bother placing a NAME down or any contact information - you're just some anonymous person who apparently wants to make sure that I know that I'M THE ONE AT FAULT!

Well, la-dee-fucking-da! You did your job. Thanks so much for letting me know that it was all my fault for doing this. I already knew that. And thanks SO much for putting such HELPFUL information up for me to read. Hope you feel proud that you've done your public service for the day.

DIAF, fucker!

~M

The Story continues...

2007-03-14T08:10:00.001-07:00

Originally posted 03/12/2007:

I'm 33 years old, and three years ago, I decided I'd try to get re-trained for another job market, as mine was slowly going into the toilet.

I went to Western Culinary Institute and got accepted to get trained as a culinary chef. My initial loans from Sallie Mae were for $22,000 on a signature loan, and $4,000 for the federal aid loan. I was never told that there was a difference, that they couldn't be consolidated together, and that things were just beginning to get worse. In addition, there was no disclosure about how much the interest would be, either.

I graduated from WCI in November of 2005. I had been working part-time in a call center, and when I went to look for a job as a cook, found that I couldn't find anything that was more than $8 per hour - well below what I had been making before, and certainly not high enough to pay off my student loans. I'd been told by the recruiter that I would be able to find plenty of well-paying jobs in the area, but when it came time, there weren't any to be found that were more than fifty cents higher than minimum wage. In my exit interview, the loan officer at the school told me my payments would be $450/month. I laughed at her - I couldn't believe they'd be that high.

I decided to go full-time in the call center where I was, and attempt to put aside monies so that in 6 months, I could start paying them at least something. The pay was decent, and I thought I could do something with the money I made there. Six months later, I got my first bill and found out that the loan officer was wrong - it wasn't $450/month. Nope - it was $553/month! In addition, for each month I didn't pay, the percentage rate on my loan was going to be at 18.9% - but if I DID pay, the interest would only be 14%! This didn't include my federal loan, which was $165/month.

I couldn't pay $553/month - I couldn't even pay the $165/month for just the federal loan. I asked for a deferral so that I could have some time to figure it all out, and started searching on the internet for anything that I could find regarding my situation. I couldn't find anything other than the Federal Ombudsman's Page - which dealt strictly with federal loans - the government would not help me if it was a private loan, and Sallie Mae was free to charge whatever they wanted for the payments as it was ungoverned.

I did consolidate the federal loan and brought it down to $60/month. I had thought that, since they were under the same account numbers (absolutely NO difference whatsoever), the federal AND the private loan had been consolidated - I'd done everything on the internet. I know that I put the private loan into my request when I set everything up. They refused to consolidate the private loan, and stated I'd never asked - even though I know that I had. They then informed me that federal loans and private loans can't be consolidated at all - that they must remain separate - when I asked them why they had them under the same account number if they "had" to remain separate, they told me that they had a way of making sure that it was separate in the computer system.

After my first deferrment, I was called upwards of 8 times per day, was called a deadbeat and a liar, and told that I needed to pay "or else". I requested that they stop calling and hounding me, that it was illegal to do so. Sallie Mae's reps told me that they could do whatever they wanted, that they weren't bound by ANY federal law, and they could call as many times as they wanted.

I got another deferral and tried again to see if there was anything I could do to help myself - I attempted to move and consolidate my loan through other agencies, but was denied repeatedly. The reasons were that either I didn't make enough money to pay back the loan at their preferred rate, or that Sallie Mae wasn't releasing the information to them in a timely enough manner. After that, I sunk into a depression that I have yet to beat.

Sallie Mae took my money a day early when I set up a post-dated deferrment payment of $50 for their "processing" fee. I told them it was illegal and had cost me NSF fees at the bank - they told me they could take the money whenever they wanted, and that the date I'd given was a "suggestion", not something they had to follow.

I was told that I should "expect" such poor treatment from them, since I hadn't made even one payment, and since I was unresponsive to their calls. That I deserved it. That I was a horrible person.

When they called again on March 9th, I finally spoke with one person who worked with me a little. She was very nice and helped set up what they called a "forebearance partial payment" of $175/month for 5 months. The catch? Well, each payment would have a $10 processing fee added to it, and I'd have to pay $50 for the initial fee, AND I'd have to pay February and March together at the same time so that I'd get "caught up". Oh, and I'd continue to get late fees attached to those monthly payments since the remaining portion wasn't being paid, AND interest would continue to accrue at 18.9%.

I was terrified to do anything except say yes. I didn't want my loan to go into default, and felt that I had nowhere else to go. I couldn't seem to get out from under them at all, and couldn't see a way out of the mess that I'd inadvertantly created - all because I'd wanted to go a different direction at one point in my life.

Even after I said yes, faxed paperwork back and forth to agree with the partial payment, and had everything (I thought) agreed upon, I was STILL called two more times that day, and again two more times two days later!! I was again told that I should expect such treatment because I was "bad" and hadn't made payments to them, so I deserved it. The first person told me that the calls would stop after the initial $50 fee was taken. The NEXT person, who called two days later, said that no, they would only stop once the faxed paperwork was actually processed, which would take upwards of 72 hours.

I've called the Wm D. Ford loan company, and was told there was nothing they could do about the principle amount of the loan, since it was a private signature loan. I was given the phone number for the Federal Ombudsman, and was told there was nothing THEY could do either, since they only dealt with the federal portion of the loan - that Sallie Mae was indeed correct about stating they could charge whatever they wanted, at whatever interest rate they chose to.

I *WAS* told by the Federal Ombudsman that Sallie Mae HAS to follow the Fair Debt Collection Practices Act, regardless of whether they are a private corporation or not, and to start making a paper trail regarding everything they've sent me and everything they're doing to me. However, I cannot have the loan dismissed simply because of hardship - while the government looks on the loan as the same thing as a credit card, the LAW says that it's a student loan - and therefore I cannot file bankruptsy on it, either.

At this point, I'm fairly near hysterical because I don't know what else to do. I don't make enough money to pay the full amount, and with the percentage rate, the late fees and the processing fees, I'm looking at upwards of $90,000 before I see the final chapter of this - if I ever DO see the end of it. The stress is ruining my health, it's putting a strain on my relationship, and it's causing me to seriously think of suicide at times because I feel as though I have no other recourse. I'm crying as I type this because the situation seems to me, at this point, to be completely hopeless. I don't know what to do right now, and I'm feeling more and more like a failure because I PUT MYSELF IN THIS POSITION AND CANNOT SEEM TO FIND A WAY OUT OF IT.

~M

The Smacketh of the Down Commenceth

2007-03-14T08:08:00.000-07:00

Originally posted 03/10/2007:

To whom it may concern:

As of this date, I am requesting your company to cease all telephone communication with me if you are unable to limit your calls to once every 24 hours. I have been receiving upwards of 8 calls per day regarding the status of my loans with Sallie Mae Services. This is unacceptable, and will stop immediately.

According to Federal and Oregon state collection compliance laws, any collection services done by any company to attempt to collect any debt may do so, as long as the person or persons owing said debt is not harassed. Harassment is referred to in legal terms pertaining to behaviors that are found threatening or disturbing, and beyond those that are sanctioned by society.

While it is understood that Sallie Mae services is a first party collector, Federal law prohibits ANY collector from calling more than three times per day to attempt to collect a debt. Oregon state law further protects its inhabitants by limiting the call to ONCE every twenty four hours.

FDCPA (the Fair Debt Collection Practices Act) broadly defines debt collectors as "any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another.”.

§ 803. Definitions [15 USC 1692a]

(4) The term "creditor" means any person who offers or extends credit creating a debt or to whom a debt is owed, but such term does not include any person to the extent that he receives an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another.

The following, notated here in bold, has been done by YOUR company to me over a period of 8 months. It is unacceptable, and will not be tolerated further.

§ 806. Harassment or abuse [15 USC 1692d]
A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:
(1) The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person.
(2) The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader.
(3) The publication of a list of consumers who allegedly refuse to pay debts, except to a consumer reporting agency or to persons meeting the requirements of section 603(f) or 604(3)1 of this Act.
(4) The advertisement for sale of any debt to coerce payment of the debt.
(5) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.
(6) Except as provided in section 804, the placement of telephone calls without meaningful disclosure of the caller's identity.

§ 808. Unfair practices [15 USC 1692f]
A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:
(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.
(2) The acceptance by a debt collector from any person of a check or other payment instrument postdated by more than five days unless such person is notified in writing of the debt collector's intent to deposit such check or instrument not more than ten nor less than three business days prior to such deposit.
(3) The solicitation by a debt collector of any postdated check or other postdated payment instrument for the purpose of threatening or instituting criminal prosecution.
(4) Depositing or threatening to deposit any postdated check or other postdated payment instrument prior to the date on such check or instrument.
(5) Causing charges to be made to any person for communications by concealment of the true propose of the communication. Such charges include, but are not limited to, collect telephone calls and telegram fees.
(6) Taking or threatening to take any nonjudicial action to effect dispossession or disablement of property if --
(A) there is no present right to possession of the property claimed as collateral through an enforceable security interest;
(B) there is no present intention to take possession of the property; or
(C) the property is exempt by law from such dispossession or disablement.
(7) Communicating with a consumer regarding a debt by post card.
(8) Using any language or symbol, other than the debt collector's address, on any envelope when communicating with a consumer by use of the mails or by telegram, except that a debt collector may use his business name if such name does not indicate that he is in the debt collection business.

I have been advised by representatives of your company that you are able to call as many times a day as you “feel like it” - that since you are your own collection company, and a private agency, you are able to do anything you want and are not governed by federal and state laws. I have been additionally advised that, as I was unable to make payments, it should be expected that I will get harassing phone calls, and only by making payments of an unreasonable amount will I end them. I was called a dead-beat and a liar, and was told that I had no rights in regards to my debt with Sallie Mae Services.

At one point I attempted to work with your company and file a forbearance, understanding that I would pay $50 at a specified future date - only to find that the payment was attempted prior to that date, which caused it to bounce, and then caused an overdraft fee with my bank. When called about it, I was told that Sallie Mae was allowed to attempt payment when they felt like it, and did not have to follow through with the date as originally promised.

I have been told that, even after I have filed a forbearance and a payment plan with your company, the collection calls will continue to come through to me until payment is received. I have been told that there is NO WAY to remove my phone number from the automated calling system, and I must simply accept that I will be contacted repeatedly until I repay my debt to Sallie Mae.

I was told at one point that if I paid less than the minimum monthly amount due, Sallie Mae would not accept it, and I would be “in trouble”. I was threatened with further harassment until I was able to pay the minimum monthly amount due on my private loan, and that Sallie Mae had the right to expect that and ONLY that - and that it would be the only way to stop the harassing phone calls.

I am hereby placing Sallie Mae on notice that I will do everything within my power to notify state and federal lawmakers of your inability to follow the fair debt collection act, and of the actions that your employees have made on your behalf, and in your name.

By receiving this fax, Sallie Mae Services hereby agrees that they will no longer contact me via telephone more than once every 24 hours.

Further - the person or persons contacting me will do so in a polite, positive, manner, with a willingness to work with my finances, and will not threaten, harass, jeer, use epithets, or otherwise demean me based upon past payment history with Sallie Mae Services.

This letter will be sent to both Sallie Mae Services complaints department, to Sallie Mae Services Legal department, to the Oregon State Better Business Bureau, the Federal Fair Debt Collection Practices Act department, and the Federal Student Loan Ombudsman’s office for a complaint filing.

Thank you.

Doesn't even BEGIN to cover it...

2007-03-14T08:07:00.000-07:00

Originally posted 03/08/2007:

Being poor that is... And we're about to get even MORE poor...

In order to get Sallie Mae off my back for a few months, I agreed to a payment plan for the private loan. It's lower than what they originally were asking me to pay ($556/month... of course, if I wanted the interest ONLY it would only be $525/month...), but it's still higher than I can afford to pay. But, at least it shows that I'm trying... The crappy bit: I have to pay February and March right now, plus a $50 fee to set everything up... SO - no more wedding money from this point forward. I'm officially tapped, and I haven't purchased the fabric for my Best Bitch or flower girl, or for Fred and Josh's jackets, or for the remaining portion of my dress... I just don't have it. They want $175 per month - and the first payment is actually a double payment as of March 24th, to "catch me up"... *sigh*

I'm still working on figuring out how bad it's gonna hit, but it'll be pretty harsh, I'm sure. Bleh. Hope everyone in the family likes top ramen and not going out to eat for a while.

~M

2 steps forward, 3 steps back

2007-03-14T08:03:00.001-07:00

Originally posted 12/1/2006:

This is a partial post from my other blog...

I *DID* get a phone call from Sallie Mae again - apparently the deferral payment that they were supposed to process today declined... WTF? I got paid today - I checked this morning when I woke up. So, I called them back, and they tried to tell me that yes, it had declined. I said it was impossible, as I got paid today and had over $600 in my bank account at that moment - unless, of course, they'd run the payment PRIOR to me getting paid. And as it's a direct deposit, that would mean they'd run it YESTERDAY. There was a pause, and then they asked for my card # again. They ran it and - lo and behold - it went through just fine. Asshats.

So, all in all not a bad day - just not stellar. I'm going to have to have a stellar weekend, just to make up for it. LOL.

~M

Jesus Wept!

2007-03-14T07:54:00.001-07:00

Originally posted 11/17/2006:

So, after I balance my checkbook this morning, pay some bills, and make some calculations, I figure out that I can afford to pay $50 for another deferral for my student loan. IF they pull it from my next paycheck.

SO - I call them up, and speak with a very nice lady there who is actually nice enough to call me back when I end up wandering through a dead spot whilst on the bus running errands. And I get everything squared away. It is around 10 am. I'm feeling rather accomplished - I have some time to get my shit in order, do some OT for work, and generally (hopefully) have enough time to get ammo to help them shoot themselves in the foot come January.

At 11 am, I'm on my way to the bank to get some things notarized, and my phone rings... It says "Unknown" on the caller ID... "Hmmm," I think, "it couldn't be Sallie Mae again - could it?" I answer it, and, lo and behold - IT *IS*!! They start their little intro speil, and I interrupt them right there and:

I say: "I just got off the phone about 45 minutes to an hour ago with another representative, and set up a deferral for my loan. Why are you calling me again?"

BC says: (long pause) "Uh... Um, well, we were, uh, just calling to.. uh... verify the address and phone number that we have on file for you - yeah."

ME: "I see - you mean the address and the phone number that I already verified earlier this morning? When I set up my deferral? (I rattle off the address again at breakneck speed)"

BC: "Uh - ok... Well, then - uh... Thanks." *click*

I swear - a worse way to cover up that you've called the number in error I have NEVER heard... These people must think I'm absolutely stupid.

On the up shot - I have found that if I can pull all my monthly receipts together and prove to Sallie Mae that I cannot afford to make $545 per month payments (and no, I can't make the $500 per month interest only payments, either), they will *HAVE* to provide me with a workable solution as their current monthly payments create a hardship on me.

Also - if, after 5 years, I'm still in hardship, I can go to court and see about having the loan dismissed - as long as I have faithfully attempted to make the payments and keep the loan current.

SO - first order of business is to pull all my monthly receipts together and see what I get. THEN it's off to find the paperwork I need to submit to the FCA Ombuddsman and Sallie Mae to prove that they're full of shit. OH - and I'm going to request from T-Mobile for a list of all my incoming calls so that I can prove that they HAVE been harassing me - and send those in as well...

~M

Well, Fuq'ity!

2007-03-14T07:52:00.000-07:00

Originally posted 6/13/2006:

So, in case you just joined our little group here, our heroine (moi) started school in February of 2004 at Western Culinary Institute. Being of (somewhat) sound mind and body, she started out this venture with the idea that perhaps, just perhaps, she would be able to use her culinary powers for good rather than for nothing.

But alas, after 18 months worth of work, she got out of school and found that working for someone else just wasn't for her... Instead, she's been trying to work on a business plan to start up a catering business of her own. Thus far, it's been on the back burner due to other stuff - like taking care of daily business at her current full-time job, and stuff at home.

This would not be so bad but for the fact that the nasty pirate people, a.k.a. Sallie Mae, have managed to completely screw her over. Being unaware that a Federal loan would not be consolidated with their private loan, she consolidated the federal loan down to $60 per month. This, she thought, she could handle with no problem. However, this left the private loan unconsolidated - and now late. The private loan wants $464 per month. Add this to the $60 per month, and we have a ridiculous amount of money that our heroine simply cannot afford and still be able to pay for such silly things like groceries - or RENT.

Ugh! I called Sallie Mae and asked for a consolidation - and was denied. I went to AES and Key Bank and asked for a loan consolidation for everything (via a private loan) and was denied. WaMu doesn't wanna, either. I even went so far as to call a bankruptcy lawyer, who said that I wouldn't want to file for it, as they won't really be able to do much other than re-finance it down to a monthly payment without interest, and that's difficult. So - once my forebearance runs out, I'm going to be in default of a loan - possibly two loans, depending on my finances. Yay me.

The craptastic part is that this is going to sit on my shoulders until I can pay it off. Right now, the amount of the loan is twice the amount of what I get paid per year - before taxes (I would have said gross, but that's just a pun in the making, eh?).

So, anyone know any good sugardaddies wandering around who like red-headed chubby women, and only want to pay for their college education? Bwa-ha-ha-ha. I crack myself up.

~M

Home Base

2007-03-13T17:49:00.000-07:00

So, after going through everything with Sallie Mae, I've decided to set up camp here away from my personal blog - I'll link this one through my personal blog, but I really want a place that's specific for this - especially since I have a feeling that things are about to get interesting.

The links here are specific to issues myself and others have had with Sallie Mae, and hopefully will be used to educate those out there to be more aware of who they are borrowing money from, and what to expect.

I'm not saying that ALL creditors are this way - I don't have experience with all of them. But after dealing with Sallie Mae for over a year, I can say that I've become fairly familiar with their Mafioso bully tactics and threatening attitudes. Reading about what others have gone through has proven that indeed, it's not just me. It's something they do to EVERYONE who borrows from them.

So - I will be slowly transferring the posts from my personal blog to here as I get time to do so. Welcome to my nightmare, and hopefully it will benefit others.

~M