Full Version: Is there anything that can be done about this?
My husband finished undergrad courses last May. He then started medical school in September. He applied for an in school deferment with Sallie Mae through his school in October. Apparently, the in school deferment was denied b/c the school is not recognized by Sallie Mae. The thing is, SM claimed that they sent him and e-mail stating that the deferment was denied which he never got. They never sent a letter in the mail. The first payment became due in November but my husband was not aware of the whole situation until this month when he started getting messages from sallie mae to call them. When he did call, they told him that his payment was past due and if he did not pay it would be reported to the credit bureaus as 30 days late at the end of January. He told them that he was still in school and that he had applied for a deferment. It was then that they informed him that the deferment was denied and the only thing he could do was apply for a forebearance which would last for six months at a time. So he applied for the forebearance, thinking that everything was okay. A few days later he checked his credit reports and saw that all his accounts with Sallie Mae were being reported as being 30 days late as of December. The representative on the phone told him that the account would be reported at the end of January if nothing was done???? He has called several times to try to have the lates removed but they keep telling him that there is nothing that can be done. Is this true?
QUOTE(DaniellaM @ Jan 25 2007, 07:24 PM) 
My husband finished undergrad courses last May. He then started medical school in September. He applied for an in school deferment with Sallie Mae through his school in October. Apparently, the in school deferment was denied b/c the school is not recognized by Sallie Mae.
What type of medical school is he going to??? Name?? Who is he currently borrowing thru to pay for medical school.
The thing is, SM claimed that they sent him and e-mail stating that the deferment was denied which he never got. They never sent a letter in the mail.
Ok...does did your DH update SM with any change of address?? What email address did SM have on file. Often students graduate and fail to update lenders with new addresses and often leave school email addresses on file with SM.
The first payment became due in November but my husband was not aware of the whole situation until this month when he started getting messages from sallie mae to call them. When he did call, they told him that his payment was past due and if he did not pay it would be reported to the credit bureaus as 30 days late at the end of January. He told them that he was still in school and that he had applied for a deferment. It was then that they informed him that the deferment was denied and the only thing he could do was apply for a forebearance which would last for six months at a time. So he applied for the forebearance, thinking that everything was okay. A few days later he checked his credit reports and saw that all his accounts with Sallie Mae were being reported as being 30 days late as of December. The representative on the phone told him that the account would be reported at the end of January if nothing was done???? He has called several times to try to have the lates removed but they keep telling him that there is nothing that can be done. Is this true?
What type of medical school is he going to??? Name?? Who is he currently borrowing thru to pay for medical school.
The thing is, SM claimed that they sent him and e-mail stating that the deferment was denied which he never got. They never sent a letter in the mail.
Ok...does did your DH update SM with any change of address?? What email address did SM have on file. Often students graduate and fail to update lenders with new addresses and often leave school email addresses on file with SM.
The first payment became due in November but my husband was not aware of the whole situation until this month when he started getting messages from sallie mae to call them. When he did call, they told him that his payment was past due and if he did not pay it would be reported to the credit bureaus as 30 days late at the end of January. He told them that he was still in school and that he had applied for a deferment. It was then that they informed him that the deferment was denied and the only thing he could do was apply for a forebearance which would last for six months at a time. So he applied for the forebearance, thinking that everything was okay. A few days later he checked his credit reports and saw that all his accounts with Sallie Mae were being reported as being 30 days late as of December. The representative on the phone told him that the account would be reported at the end of January if nothing was done???? He has called several times to try to have the lates removed but they keep telling him that there is nothing that can be done. Is this true?
6 month grace ended in Novemeber with payemnts coming due. It is now January. It is quite possible that he is legitmately 30 behind regardless of what the csr told you. Forebearance granted in January would have no bearing on previously missed payments.
Thanks for responding Lynn,
He is currently attending a medical school in the Caribbean and is currently borrowing for student loan xpress/health xpress.
DH has never changed his mailing address its been the same since he started borrowing with Sallie Mae. They said they never mailed out a letter though because he chose to receive all correspondence via e-mail. I am not sure what e-mail address they have on file for DH, though u bring up and interesting point about the school e-mail addy.
So you're saying that they're right and that there is nothing that can be done? I still think it was pretty shady though of the CSR to tell him that nothing had been reported to the credit bureaus and it wouldn't be until the end of January.
He is currently attending a medical school in the Caribbean and is currently borrowing for student loan xpress/health xpress.
DH has never changed his mailing address its been the same since he started borrowing with Sallie Mae. They said they never mailed out a letter though because he chose to receive all correspondence via e-mail. I am not sure what e-mail address they have on file for DH, though u bring up and interesting point about the school e-mail addy.
So you're saying that they're right and that there is nothing that can be done? I still think it was pretty shady though of the CSR to tell him that nothing had been reported to the credit bureaus and it wouldn't be until the end of January.
CSR's are pretty no mind when it comes to credit reporting. They have nothing to do with it and are generally not well versed....consequently they tend to say whatever they can to keep the borrower lender.
Since he doesnt qualfiy for in school deferment, he should be able to take advantage of the unemployment deferment. Will he do internship/residency here in the US?? I believe those do qualify for deferment.
Since he doesnt qualfiy for in school deferment, he should be able to take advantage of the unemployment deferment. Will he do internship/residency here in the US?? I believe those do qualify for deferment.
The CSR never mentioned anything about an unemployment deferment. He told DH the only option was a forbearance which he has to keep applying for every six months for a maximum of two years. I will tell DH to look into this option.
Yes he will be back in the U.S. in about a year for his clinical rotations, and then his residency.
Also is it possible for him to consolidate the private loans he has with sallie mae with student loan xpress? I think I read somewhere on this board that private student loans are now eligible for consolidation.
Yes he will be back in the U.S. in about a year for his clinical rotations, and then his residency.
Also is it possible for him to consolidate the private loans he has with sallie mae with student loan xpress? I think I read somewhere on this board that private student loans are now eligible for consolidation.
QUOTE(DaniellaM @ Jan 25 2007, 11:36 PM)
The CSR never mentioned anything about an unemployment deferment. He told DH the only option was a forbearance which he has to keep applying for every six months for a maximum of two years. I will tell DH to look into this option.
You and your dh should study the SM site....all the information is there.
http://www.salliemae.com/after_graduation/...e/deferment.htm
Yes he will be back in the U.S. in about a year for his clinical rotations, and then his residency.
Also is it possible for him to consolidate the private loans he has with sallie mae with student loan xpress? I think I read somewhere on this board that private student loans are now eligible for consolidation.
You can consolidate private loans, but NOT as or with a federal consolidation. Private student loan has to be kept totally seperate.
You and your dh should study the SM site....all the information is there.
http://www.salliemae.com/after_graduation/...e/deferment.htm
Yes he will be back in the U.S. in about a year for his clinical rotations, and then his residency.
Also is it possible for him to consolidate the private loans he has with sallie mae with student loan xpress? I think I read somewhere on this board that private student loans are now eligible for consolidation.
You can consolidate private loans, but NOT as or with a federal consolidation. Private student loan has to be kept totally seperate.
oops duplicate.
QUOTE(Cynic @ Jan 26 2007, 03:36 AM)
QUOTE(LynnInMN @ Jan 25 2007, 11:31 PM)
CSR's are pretty no mind when it comes to credit reporting. They have nothing to do with it and are generally not well versed....consequently they tend to say whatever they can to keep the borrower lender.
Since he doesnt qualfiy for in school deferment, he should be able to take advantage of the unemployment deferment.
If he is deligently seeking full-time employment in the US or a US territory and registered with an employment agency yes. If he is not seeking employment due to full-time school no.
Will he do internship/residency here in the US?? I believe those do qualify for deferment.
If he was a "new borrower" before July of 1993 yes. If not then it would be a mandatory forbearance. (Mandatory meaning the lender must grant it if provided with supporting documentation of internship/residency status.) They should be able to grant this for 12 months at a time.
Disclaimer: the above info is based on the assumption that these are federal loans.
QUOTE(DaniellaM @ Jan 25 2007, 08:24 PM)
My husband finished undergrad courses last May. He then started medical school in September. He applied for an in school deferment with Sallie Mae through his school in October. Apparently, the in school deferment was denied b/c the school is not recognized by Sallie Mae.
Sallie Mae has little to do with it. Has to be a Title IV school in the US or a US territory.
The thing is, SM claimed that they sent him and e-mail stating that the deferment was denied which he never got. They never sent a letter in the mail. The first payment became due in November but my husband was not aware of the whole situation until this month when he started getting messages from sallie mae to call them.
Per the p-note, the borrower agrees that any notification sent to "the latest address the lender has for me or by electronic means to an electronic address I have provided" will be "effective."
Your DH never received anything from Sallie Mae notifying him he had been granted a deferment.
When he did call, they told him that his payment was past due and if he did not pay it would be reported to the credit bureaus as 30 days late at the end of January. He told them that he was still in school and that he had applied for a deferment. It was then that they informed him that the deferment was denied and the only thing he could do was apply for a forebearance which would last for six months at a time. So he applied for the forebearance, thinking that everything was okay. A few days later he checked his credit reports and saw that all his accounts with Sallie Mae were being reported as being 30 days late as of December. The representative on the phone told him that the account would be reported at the end of January if nothing was done???? He has called several times to try to have the lates removed but they keep telling him that there is nothing that can be done. Is this true?
OK the CSP gave incorrect info. Your DH failed to keep them updated on how to contact him, failed to be proactive when he never heard anything back about his deferment request, and failed to make his payments on time.
Does Sallie Mae have bad customer service? Definitely.
Was your DH delinquent? Yes.
Is it their fault he agreed to email correspondence and failed to update his email address? No.
How was he made aware of delinquency? Sallie Mae's "due diligence".
What should he do? Look into Economic Hardship Deferment.
Sallie Mae has little to do with it. Has to be a Title IV school in the US or a US territory.
The thing is, SM claimed that they sent him and e-mail stating that the deferment was denied which he never got. They never sent a letter in the mail. The first payment became due in November but my husband was not aware of the whole situation until this month when he started getting messages from sallie mae to call them.
Per the p-note, the borrower agrees that any notification sent to "the latest address the lender has for me or by electronic means to an electronic address I have provided" will be "effective."
Your DH never received anything from Sallie Mae notifying him he had been granted a deferment.
When he did call, they told him that his payment was past due and if he did not pay it would be reported to the credit bureaus as 30 days late at the end of January. He told them that he was still in school and that he had applied for a deferment. It was then that they informed him that the deferment was denied and the only thing he could do was apply for a forebearance which would last for six months at a time. So he applied for the forebearance, thinking that everything was okay. A few days later he checked his credit reports and saw that all his accounts with Sallie Mae were being reported as being 30 days late as of December. The representative on the phone told him that the account would be reported at the end of January if nothing was done???? He has called several times to try to have the lates removed but they keep telling him that there is nothing that can be done. Is this true?
OK the CSP gave incorrect info. Your DH failed to keep them updated on how to contact him, failed to be proactive when he never heard anything back about his deferment request, and failed to make his payments on time.
Does Sallie Mae have bad customer service? Definitely.
Was your DH delinquent? Yes.
Is it their fault he agreed to email correspondence and failed to update his email address? No.
How was he made aware of delinquency? Sallie Mae's "due diligence".
What should he do? Look into Economic Hardship Deferment.
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.