Hi, I could really use some guidance here.

I got a $2500 private education loan from Sallie Mae two years ago. Original terms of the loan were that I paid $130 per month, now Sallie Mae is saying that the $130 was only for 10 months and now I am supposed to pay $150; the copy of the signed promissory that I have says it's $130 for the duration of the loan).

I had been paying regularly up until four months ago when I could no longer afford the payment. Like lots of other people I was affected by food, gas and energy price increases - mostly gas. The first month I realized I was going to have trouble paying the full amount I called, explained what was going on and was told to send in a request to have my payment reduced and loan extended (I asked for a $40 reduction and the corresponding extension as I felt this wouldn't be a problem for me to pay). I did so, called weekly to check the status of the request and at week 2 after the request was sent I was told I was approved for the reduced payment and would receive my paperwork within 2 weeks. Two weeks passed and no paperwork arrived so I called back only to be informed that I was denied because I was 30 past due.

In the past four months I have been able to make two full payments and one partial but they are somehow counting me at 120 days past due.

I have been called daily, often several times on the weekend - Sundays included. The reps are beyond rude, call from multiple numbers (including one that shows as a wireless number wherein the csr deceptively tries to pretend to be someone I went to high school with who found my number). They refuse to acknowledge me by anything other than my first name (a huge pet peeve since we aren't on a personal level).

Today they called three times. The first time they wanted to offer me this great deal that they would tell me about only after I would verify who I was and provide them with my banking information. The second and third time I was told I was being marked as a refusal to pay and was told to shut up when I told them I wasn't refusing to pay. Then the rep proceeded to say that it wasn't my decision to say I wasn't refusing to pay and that the only way I would not be marked as refusal to pay was to schedule today for three payments to be drafted out of my bank account on Monday. When I refused the "supervisor" told me that he would find my bank account and freeze it until they got payment and that he would also come after my paycheck.


Let me be clear I am NOT trying to avoid paying this debt. I created it and I intend to make good on it but I cannot afford to pay the original amount or their new larger amount. What, if anything, can I do or try to do to remedy the situation? How do I prove that I had a $130 payment for the duration of the loan? What if they lifted my signature from the original paperwork and put it on new paperwork and how do I prove that and to who? How do I stop them from garnishing my pay, will I receive notice of a hearing or some such? What about freezing my bank account (I'm guessing they can't since I haven't provided that information to them nor have I authorized them to deduct anything from my account)?

Any constructive help/pointers is appreciated. Thanks in advance.

(if this has been discussed elsewhere point me in that direction and I will read, I couldn't find anything for the past hour so I decided to post)

Well, it sounds like you are dealing with some shady collectors that are working for Sallie Mae, rather than actually from Sallie Mae.

You have rights under the "fair debt collection act". Google the term, but you should request in writing (signature confirmation on your letter.) to tell the agency not to contact you any further. They will then only be able to contact you via mail.

In the letter, you might offer them a payment plan that suits your budget. The worst they can say is no. NEVER give them your banking information or they will slam your account for the full amount.

Yup, it works that way. If the first payment of the 4 was less than full payment, you are past due. Every payment made after that that does not bring your current will also count you as late.

Sallie Mae internal collections would still be collecting until a default is declared.

I hate Sallie Mae! Used to have a loan with them....uggh trouble...Anyways....don't talk to them on the phone! Get everything in writing. Send a Cease and Disest letter for collections requesting everything in writing. This will bring that heavy load off of ur shoulders so you don't have to talk on the phone. Since you are in collections for them, there are some laws they have to abide by under the FDCPA. Also, since it is a student loan, there is also the option of rehabing it since it likely that it is now in default. Post your original message in the Credit Forum as there are more knowledgable people there that can help you with the collections part.