Help please!! How to deal with SallieMae? they are real #&$^%!!!

[popflier]

I know it's long, but PLEASE the background is necessary I really need some help! I am looking for some advice on how to deal with SallieMae. (I really wish I knew beforehand what bastards they were before I signed loans through them for school.)

 

Here's my situation. I have several school loans. All of my government subsidized and unsubsized loans I was able to consolidate through Direct Loan before the big July 2007 date where lower interest rates were locked in. However there was one small loan of $4,000 that didn't make it in which I have been paying the monthly payments on. It's only like $60/month. My schooling was very expensive so in addition to the $45,000 I owe Direct Loan I also owe ACS $22,000 and TWO separate loans through SallieMae for roughly $25,000 per loan. My plan was always once I graduated to consolidate my private loans with either ACS, SallieMae, or another lender. Unfortunately the economy took a dive and no one I contacted was willing to consolidate ANY private loans. None of my loans have co-signers. I HAD stellar credit and a great job.

 

I graduated in May 2008 and was laid off from my job on August 31st, 2008. 6 months after my graduation date I still didn't have a job and in my state, Colorado, I was only eligible for a TINY amount unemployment. I also didn't make the cutoff date of government aid by ONE day where 65% of your cobra was subsidized by the government, additional unemployment money was offered, etc... (In order to be eligible you had to have been laid off on September 1st.) I had to maintain my health insurance because of an injury I had that required ongoing care so I ended up using all of my savings to pay Cobra for 6 months. During that time I also paid SallieMae their "required fee" of $50 PER LOAN for 3 months of forbearance.

 

I was able to get on another insurance plan after Cobra ran out, but in June 2009 I required surgery. Since June 2009 I have been unable to work due to chronic pain and my inability to sit for more than 3 minutes. (The BA that was so expensive requires me to sit at a computer for 10 - 12 hours per day.) Because I can't work I cannot collect unemployment and social security disability has been a nightmare to try and get. I do some freelance graphic/web design work at home as I can lay down on my bed and work, but that only brings in about $700 a month in total before taxes.

 

SallieMae calls me at least 12 times a day (literally!) I quit answering their calls because I end up repeating myself over and over again. They tell me that the calls will continue unless I pay. Of course I know that, but I don't have the money to pay them. SallieMae refuses to consolidate the two loans I have with them to a more manageable payment. (currently it's $475 in total.) If you add in the other student loans I have my payments would be close to $1200/month just in student loans.

 

Every time I do talk with SallieMae they ask me the same questions, "you're past do, we need to arrangement to make a payment today?, when will you have a job?, how are you able to live?, who's paying for your food and rent?, can your friends or family make your payments for you?, can your cousin or mother make your payments?, etc, etc...." It's always the same questions and I always tell them the same thing. I can't find a job, am not eligible for unemployment, friends and family are helping to cover food and rent and no they cannot make my payments, and NO I cannot afford your ridiculous $50 per loan fee for 3 months forbearance.

 

I've looked up the laws both in my state and for the federal government. The sheer number of their calls are harassment, but I feel that some of the questions also border along those lines. I've filed a complaint with the attorney general of Colorado and the FCC and I've told SallieMae to notate my account that I wish to only be contacted by mail and to stop calling me and that I will call them when I have a job. I know I need to also put that in writing an am looking to send a certified letter to them this week.

 

When I do get a job I still will probably only make $40/year to start in my field and at that salary I still won't be able to pay my $1200/month student loan payments.

 

Should I send a letter to SallieMae telling them to stop calls and that I will contact them once I have a job?

When I get a job should I just let SallieMae garnish 15% of my wages since I can't afford their monthly payments?

What other options do I have?

 

Help please!

[LynnInMN]

Are the Sallie Mae Loans private loans? If so, complaining wont help...and cease them will just cause them to sue you sooner.

[popflier]

Are the Sallie Mae Loans private loans? If so, complaining wont help...and cease them will just cause them to sue you sooner.

 

They are private loans. At this point they are welcome to sue. I don't have anything of value and cannot work due to a permanent disability that I received from an injury at work after I obtained the loans. I'd happily give them back my degree since I won't be able to use it due to my injury. Unfortunately, SM are now beginning to harass my family members who are not co-signers on my loans. SM are lying to my family in saying that they "cannot get ahold of me," which is not true. I talk to them once a week and tell them my situation and each time I speak to them they say that they have notated my account, but the calls will continue. I tell them fine. But calling my family members is not okay. This is NOT their issue and should not be involved. I am also not okay with SM telling me that I am "lying" about my other private loans being put into forbearance WITHOUT having to pay a fee. SM insisted that all private loans companies charge a fee for the loans to be put into forbearance. I told them they were wrong and even offered to do a 3-way call to my other private loan company so they could verify that I did not pay for my loans to go into forbearance with them. They refused to do the 3-way call with me.

 

I am tired of both myself and my family being harassed. There is nothing that I can do as I am unemployed, not eligible for unemployment, in the middle of a daunting process with filing ss disability, and don't even have $20 to my name. Friends and family are providing food and a place to stay. So really what options do I have?

[rynn]

This is really a desperate story and I feel bad for you. Unfortunately, you've come to the wrong place for help. The only "experts" who post on this board would rather pick up the phone and start calling you themselves before they gave you any honest options.

 

You are in a really bad situation because I believe you would need to be declared permanently and totally disabled to have your federal loans discharged. For the private loans, I don't know, it might be the same. You don't sound like you are permanetnly and totally disabled, and that's a good thing. The bad news is the loans won't go away, but the good news is that even though you will always have to pay toward your student loans there are many ways that the loans can be made manageable.

 

I can't follow your story to figure out what loans are consolidated with Direct and what loans aren't, and I can't figure out how much you owe in private student loans, but with Direct you can go on the Income Contingent Repayment plan. I don't know what the income limit is, but I think it's 15% of disposable income, and the payment can be as low as $5.00 per month over 25 years. FFEL loans can be paid back with an Income Sensitive Plan. For the loans that aren't able to be in one of these programs you may need to get a bankruptcy or consumer lawyer to help you negotiate a settlement and payment plan. They can't get more than they can garnish from any paycheck, unemployment, or disability check you have and the law is about 15%.

 

This isn't an easy problem to solve, and it won't go away, but you can make things much better for yourself by working on getting on payment plans.

[Gudziel]

This is really a desperate story and I feel bad for you. Unfortunately, you've come to the wrong place for help. The only "experts" who post on this board would rather pick up the phone and start calling you themselves before they gave you any honest options. WTF?!?!?

 

You are in a really bad situation because I believe you would need to be declared permanently and totally disabled to have your federal loans discharged. For the private loans, I don't know, it might be the same. You don't sound like you are permanetnly and totally disabled, and that's a good thing. The bad news is the loans won't go away, but the good news is that even though you will always have to pay toward your student loans there are many ways that the loans can be made manageable.

 

I can't follow your story to figure out what loans are consolidated with Direct and what loans aren't, and I can't figure out how much you owe in private student loans, but with Direct you can go on the Income Contingent Repayment plan. I don't know what the income limit is, but I think it's 15% of disposable income, and the payment can be as low as $5.00 per month over 25 years. FFEL loans can be paid back with an Income Sensitive Plan. For the loans that aren't able to be in one of these programs you may need to get a bankruptcy or consumer lawyer to help you negotiate a settlement and payment plan. They can't get more than they can garnish from any paycheck, unemployment, or disability check you have and the law is about 15%.

 

This isn't an easy problem to solve, and it won't go away, but you can make things much better for yourself by working on getting on payment plans.

rynn sounds like a CA employee... probably the one harassing you. You should make a plan with him as he will catch some of the benefits for getting you to sign the dotted line!!!!

Unfortunately, Lynn is correct. She is knowledgeable, rynn is not.

 

Take it from me. I am dealing with Sallie Mae with both federal and private loan defaults.

 

I was contacted by Pioneer Credit Recovery on behalf of Sallie Mae for my defaulted federal loans. I HAD to make a rehab payment plan with them or they threatened suit. They worked with me and I got Direct Loans to purchase my federal loans, and now my payments will begin with them.

 

I have been getting harassed by Oxford Management Services on behalf of Sallie Mae for two defaulted private loans, which I was unaware of. I argued with them on the phone about it stating that I was already in a rehab program and I was told by a rep that they had all of my Sallie Mae loans. Unfortunately, I was unaware that they meant all of my federal loans, not private too. You cannot rehab private loans. They can do what they wish and Lynn is correct, there is nothing you can do about it really. They asked me the same questions they ask you. I would tell them that with a $202/month with Pioneer, $350/month with AES in rehabs, not including my other bills, I could not afford the $14k settlement that they were asking. And then they began asking about other job opportunities, and this was a manager!!!! (it's fun to be condescending on the phone to them though, without swearing. Don't like it much in return ) But I worked out a $1k this month, $2700 next month, and $200/month for four months after and then we'll discuss a settlement offer.

 

I KNOW you are in bad times, and those types of payments aren't possible. I understand that. But the CA (this isn't Sallie Mae, it's a CA. Find out who it is) is more willing to speak with you for a payment of some type rather than sue you. That takes more time and money than they want to do right now. If you honestly don't care if they sue you, then a C&D via mail to their address should do the trick. I just got the payment agreement from the CA during the weekend and it had C&D info on the back of the CA's agreement.

 

Goodluck and keep us updated... and please, don't listen to rynn... he/she sounds like they have alterior motives.

[rynn]

Gudziel, sorry, I'm not from Wonderland. I guess reality is different here.

 

This is helpful advice, huh? "Are the Sallie Mae Loans private loans? If so, complaining wont help...and cease them will just cause them to sue you sooner."

 

Your response was strangely out of context and rambling. I told her that her loans won't go away but there are programs she access to get a manageable payment and maybe a lawyer would help with a settlement for a private loan. No different than your advice for rehab. That sounds like CA. Hmm.

[Gudziel]

Nothing in Wonderland about it bud. I am just stating EXACTLY the routes I had to go in order to get them off of my back. I am failing to see how it was rambling other than disagreeing with the opening of your "What You Should Do" which I displayed was in the opening sentences of your response.

 

He clearly stated he was unable to make any payments UNTIL he gets a job, and even then it will be 15% garnishment of his pay. I went through that myself, and the only way I could get out of that was to pay a nice chunk of it off as a downpayment or enter rehab with "voluntary" payments. THAT WAS ONLY ON FEDERAL LOANS.

 

Sallie Mae treats people like sh!t when it comes to private loans. Why is that??? oh wait, cuz they are PRIVATELY OWNED. So rehab is out of the question when he does begin getting a paycheck. If he is going to wait until he gets a job to try and make payments (which it sounds like he is UNABLE to pay a dime towards right now) he better expect to either a) look forward to getting calls and possibly sued if it doesn't happen soon or expect to pay a decent chunk of the debt as a down payment to enter any type of payment plan. If he is sued, they will go for bank account seizures, garnishments, etc. Any means necessary to get their money.

 

Bottom line, he doesn't have money to pay them right now. I had to go through loops to get my down payment chopped in half and pay over two months for them to stop calling me. He can't make what I am making right now in payments. So if he wants to stop the calls, a C&D is what it will take, which will push them to sue, which he isn't worried about anyways, but they will seize his accts and garnish what they can. And if he goes for permanent disability, is he still able to get a job in his field. And if so, how does that change things when he does get a job???? I find it hard to believe someone, who gets approved for permanent disability, is able to get it reversed??? Seems like tampering of the law?????? Maybe???? Take permanent when it works for you, and then hop back out when you are good to go???

 

So my rambling only comes out when someone states negative things about the board or another poster who has always given legit advice.... and in turn is giving possibly illegal advice about tampering with trying to get permanent disability when the poster stated that they are going to go back to work soon. Just my RAMBLING.

[Gudziel]

Oh, and by the way...

 

Lynn's statements were just a VERY short, simple and to the point version about my "ramblings". Private loans are NOT held to the same standards/laws as federal. You can complain about their calls, but once you sign that dotted line of their contract, you are held to their rules.

 

So no, complaining to AG's will not help. And a C&D will push them to sue. She was right.

Edited March 22, 2010 by Gudziel

[hoapres]

Talk to a competent BK attorney that has experience in discharging student loans. Discharging student loans in BK is NOT AN EASY THING to do but you just might meet the "hardship requirements" which vary among the BK courts.

[Gudziel]

Talk to a competent BK attorney that has experience in discharging student loans. Discharging student loans in BK is NOT AN EASY THING to do but you just might meet the "hardship requirements" which vary among the BK courts.

hoapres,

 

Are you able to include private loans when discharging in BK??? I am trying to get all of the private loan facts I can.

 

thanks

[LynnInMN]

Talk to a competent BK attorney that has experience in discharging student loans. Discharging student loans in BK is NOT AN EASY THING to do but you just might meet the "hardship requirements" which vary among the BK courts.

hoapres,

 

Are you able to include private loans when discharging in BK??? I am trying to get all of the private loan facts I can.

 

thanks

 

 

It is next to impossible and expensive...you have to go thru a special hearing and prove undue hardship. They will look not just at your income now but your earning potential over the next 20 or so years.

[screwsalliemaedebt]

I know it's long, but PLEASE the background is necessary I really need some help! I am looking for some advice on how to deal with SallieMae. (I really wish I knew beforehand what bastards they were before I signed loans through them for school.)

 

Here's my situation. I have several school loans. All of my government subsidized and unsubsized loans I was able to consolidate through Direct Loan before the big July 2007 date where lower interest rates were locked in. However there was one small loan of $4,000 that didn't make it in which I have been paying the monthly payments on. It's only like $60/month. My schooling was very expensive so in addition to the $45,000 I owe Direct Loan I also owe ACS $22,000 and TWO separate loans through SallieMae for roughly $25,000 per loan. My plan was always once I graduated to consolidate my private loans with either ACS, SallieMae, or another lender. Unfortunately the economy took a dive and no one I contacted was willing to consolidate ANY private loans. None of my loans have co-signers. I HAD stellar credit and a great job.

 

I graduated in May 2008 and was laid off from my job on August 31st, 2008. 6 months after my graduation date I still didn't have a job and in my state, Colorado, I was only eligible for a TINY amount unemployment. I also didn't make the cutoff date of government aid by ONE day where 65% of your cobra was subsidized by the government, additional unemployment money was offered, etc... (In order to be eligible you had to have been laid off on September 1st.) I had to maintain my health insurance because of an injury I had that required ongoing care so I ended up using all of my savings to pay Cobra for 6 months. During that time I also paid SallieMae their "required fee" of $50 PER LOAN for 3 months of forbearance.

 

I was able to get on another insurance plan after Cobra ran out, but in June 2009 I required surgery. Since June 2009 I have been unable to work due to chronic pain and my inability to sit for more than 3 minutes. (The BA that was so expensive requires me to sit at a computer for 10 - 12 hours per day.) Because I can't work I cannot collect unemployment and social security disability has been a nightmare to try and get. I do some freelance graphic/web design work at home as I can lay down on my bed and work, but that only brings in about $700 a month in total before taxes.

 

SallieMae calls me at least 12 times a day (literally!) I quit answering their calls because I end up repeating myself over and over again. They tell me that the calls will continue unless I pay. Of course I know that, but I don't have the money to pay them. SallieMae refuses to consolidate the two loans I have with them to a more manageable payment. (currently it's $475 in total.) If you add in the other student loans I have my payments would be close to $1200/month just in student loans.

 

Every time I do talk with SallieMae they ask me the same questions, "you're past do, we need to arrangement to make a payment today?, when will you have a job?, how are you able to live?, who's paying for your food and rent?, can your friends or family make your payments for you?, can your cousin or mother make your payments?, etc, etc...." It's always the same questions and I always tell them the same thing. I can't find a job, am not eligible for unemployment, friends and family are helping to cover food and rent and no they cannot make my payments, and NO I cannot afford your ridiculous $50 per loan fee for 3 months forbearance.

 

I've looked up the laws both in my state and for the federal government. The sheer number of their calls are harassment, but I feel that some of the questions also border along those lines. I've filed a complaint with the attorney general of Colorado and the FCC and I've told SallieMae to notate my account that I wish to only be contacted by mail and to stop calling me and that I will call them when I have a job. I know I need to also put that in writing an am looking to send a certified letter to them this week.

 

When I do get a job I still will probably only make $40/year to start in my field and at that salary I still won't be able to pay my $1200/month student loan payments.

 

Should I send a letter to SallieMae telling them to stop calls and that I will contact them once I have a job?

When I get a job should I just let SallieMae garnish 15% of my wages since I can't afford their monthly payments?

What other options do I have?

 

Help please!

[screwsalliemaedebt]

Since this is a life style changing situation, you will have to do just that as well. Remember that the debt will stay for ever and ever with you, so you cannot own anything under your name. The best way to take care of your life and family is to

create multiple sources of income and I don't mean go open up a physical business address. You need to find a way to work for yourself where you can control your money, not the courts. This way you can tell Sallie Mae to go screw themselves. :-) This is very doable. Never give up, never get dominated by them. I am winning my battle. They probably think that they will get me down the road, but they won't. I'm secured now. If they are willing to come down to my terms then we will do business.

[breeze]

This topic is 3 years old.