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Sallie Mae / Added unsubsidized interest on subsidized loan TWICE- ignored dispute letters and phone calls

1 P.O. Box 3800WilkesBarre 87733800, PA, United States Review updated:
Contact information:
Phone: 888-272-5543

My daughter's school loan suddenly had unsubsidized interest added on to a subsidized loan. She wrote letters, including a certified letter with proof o delivery, asking for an explanation and that the charge be removed. Sallie Mae never answered one letter, which is illegal. The interest kept going up and because I'd had the same thing happen to me with ACS that cost me $500 I never actually owed, and I was too busy to keep after her to keep after them, I paid off the $200.00 with a letter from her disputing the actual debt. At least it couldn't keep going up until we had time to devote to hassling with them.

To my surprise, last year unsubsidized interest was added to her bill, AGAIN. She is in school with an in-school deferment, which shows up on her account, and it is a subsidized loan. There is absolutely no reason for that charge to be on her account!

Again, she contacted them to straighten it out and they have entirely ignored her. It is now up to $200.00 again. Unless I pay it, which will total $400.00 literally stolen from us (in addition to the $500.000 ACS stole from me for my school loan), it will climb higher!

I see that Sallie Mae was completely privatized in 2004, with no more relationship with federal government. That is when these problems started.

Sallie Mae must believe they will never be held accountable because they follow no laws regarding contacting students before adding fees or interest for forbearances and defaults (which they are supposed to do a specific number of times if three payments are missed, and if they did students would know when the company is making a mistake on their account instead of discovering it down the line), and they do not bother to respond to disputes at all, let alone within the timeframe the law requires!

Ba
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Comments

  • Jo
      27th of Oct, 2008
    0 Votes

    I recomend that anyone involved with Salie Mae take a look at these websites:

    http://www.studentloanjustice.org/

    http://www.studentloanborrowerassistance.org/

    One of them explains what happened to allow an altogther evil organization to gain so much power. The other one gives you an explaination of the things you can do if you are a victim of this blatently criminal organization. I wish I could say there's encouragment here, but there isn't. The best thing to do is NOT to use Sallie Mae. They are exempt from consumer protection laws and it is illegal for any other lending institute to compete with them. So once you have a loan with Sallie Mae, you can NEVER refinance with someone else. Just use credit cards to pay for school, then file bankruptcy. It is cheaper, faster and safer than using Sallie Mae. Or, be a resident of California where there is no tuition in their state schools.

  • Gs
      10th of Sep, 2009
    0 Votes

    I did not even think to look for that. My wife has numerous loans serviced by SLM. My wife returned for a bachelors degree but had to take a couple of semesters off. She had existing loans on in-school deferment and some of the new loans had their grace period used during the off semesters which then ended up also being on in-school deferment before graduation. So far everything is as outlined in the agreements. SLM never did update their record of graduation date despite a number of ways they had the info to do so including; an enrollment clearinghouse, replies to notification of repayment beginning, application of additional loans, the school's financial aid and registrar offices notifications. Well, each transition of status from grace, in-school deferment, etc. allowed for capitalization of accrued interest. Then, there was the erroneous early repayment status which was not being resolved before the new payment was due - twice (merely a coincidence to this post). The payment was made to avoid a late payment and associated fees. Those payments were not refunded despite being made with notice of dispute, but that is a small issue. The bigger issue is the associated capitalization of interest which should never have occurred. I never thought it would contribute greatly, but now I have to run some calculations. It also never occurred to me to verify that only interest from unsubsidized loans was being capitalized. Now with the poor job markets the loans are on forbearance with reduced payments, but the capitalized interest may now be contributing more than anticipated. If so, and some was capitalized earlier than permitted, then that equates to unjust enrichment. The correction would have been entirely in their hands. They have no incentive to make such corrections. They have plenty of incentive to NOT make such corrections.

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