I have a quick question for the boards. My girlfriend is behind in her student loan payments. She's had numerous conversations with them (collection/servicing department I would assume) and it gets worse with each conversation.

The first person she talked with told her she had to pay a $30 fee to get her loan into deferment. She then paid it, only to find out in a later phone call that she already used up her allotted 3 deferments options.

The latest gentleman she's been speaking with has been absolutely unruly. He belittled her. He basically demanded her total student loan be paid in full. Then when onto say that she could start paying $330 a month (which she cannot afford with her salary). After further battling he finally said to her that she could pay that $330 and then be able to get on some sort of interest only program.

Well she got the money together with help from her mother. She called the guy and now he's belittling her that how is he supposed to know whether she would be able to handle the interest only payment. He even said that well now he has to raise that $330 to $400.

I'm getting tired of hearing this conversation from her. I feel like verbally abusing that little shit over the phone, even so far as to flying out to his office and roughing him up. Obviously none of those will solve the problem.

What will? I told her perhaps it's time to consult with a lawyer as I feel like this is going to be endless with him constantly trying to pinch more money out of her. I'm logically assuming he gets paid based on how much he collects from her. I'm thinking she's going to get bilked somehow, why not just bite the bullet and spend something on somebody who can help her deal with these unruly f*cks.

who exactly is calling?

She's been calling them recently because she's trying to get it taken care of.

Please keep the language in check.

Who is "them"? Is it a collection agency? If so, then their behavior is illegal. If it's the originating loan place, then I'm not sure what restrictions they have.

If it's an "internal" collections division, Pryan, do they have to follow the same rules?

ok...who is she calling then? Who is "them"? What company?

Sorry. Just a bit worked up from this situation.

It's my understanding that she's been calling the private student loan company directly. That's all I know.

I'm finding out for you......

Actually, she says it's Sallie Mae.

Here is your answer. It helped me get alot of issues taken care of. Good luck.

subscribing

She said she already tried them. Her loan is a private loan not a federal loan.

Yeah, Private SL are not fun! I am dealing with them myself.

I was able to put my Sallie Mae loan into forbearance a few years ago when I got laid off. IIRC, the form was on the Sallie Mae website. I just printed it out and sent it in with the info it asked for.

Ok, not to be disrespectful but for the last time they haven't given her that option. She's used up all her forbearance and deferment.

Moving to the student loan forum for more expertise.

In researching her situation some more (she let me dig thru her online Sallie Mae account), the loan started out as a $11,000 private student loan for her University of Phoenix schooling. She opted for in-school deferment and apparently since 2001, the loan has been accruing interest every 6 months to the tune of $17,000 now making the loan $28,000. She wasn't aware of the terms (not an unheard of story)....she didn't have this problem with her federal student loan...... and now she's all out of options. They will not give her a forbearance option nor will they give her anymore deferments.

They are demanding $425/month from now on, with no options for interest only.

She cannot afford this. She's been struggling to get by the past couple of years. She doesn't know what to do.

Is a bankruptcy claim her only option here?

Okay - 1st things 1st, just because the person on the phone is not offering her a deferment or a forbearance does not mean she is not eligible. They are not the same thing and there are different types of both options available. Have her log on to her Sallie Mae account and towards the top right should be an option "Postpone Payments" this will tell her what deferment and/or forbearance options may be available to her.

Once she has researched her options online I would have her call in and immediately ask to talk to a supervisor. My personal experience in dealing with their customer service has been very positive so she may just need to get someone who is willing to work with her.

The op has a private or alternative loan and has already used up their deferment priveleges. Privates dont have to offer any as it is, but they do generally offer some on a limited basis.


Bottom line....if she doesnt pay she will default. No rehab, no consolidation to remove the default. Private loans are hell. Bankruptcy is not an option.

Spoken like a Sallie Mae rep..............

I'm guessing you didn't read any of the posts. She's talked to their customer service department many times over. Has spoken with 4 reps and a manager. They've all said the same thing - she's used up her 3 deferment options and they are not offering forbearance. They have ridiculed her many times, to the point of tears. The only option they are offering is for her to pay her $425/month even though she's clearly demonstrated that she cannot afford it.

Oh but I did read it. Bottom line...they do not have to offer you any other payment plan but the $425/month. SM doesnt care if you cannot afford it...they like any other consumer loan want their payment. This is how PRIVATE student loans work. You dont pay, they default you.

No, actually you did not read it and your reply indicates this with your now changed, but true and unjust stance of pay or be screwed.

I think YOU did not read what Lynn said. If you don't pay, the loan will go into default and likely sent to a CA with fees tacked on. That CA will then come after your GF and will demand an even higher payment. Then, when she refuses to pay that amount, they will very likely sue, win the lawsuit and then begin garnishing wages and searching for her bank accounts. Unjust or not, it is what it is. There is no other option.

Two other things you need to know are student loans are not easily discharged through bankruptcy and have no statute of limitations for collections. They will follow her for life.

**Important**

They want the money, your girlfriend has agreed to pay. Send them a certified letter and include a money order or cashiers check for the amount she can pay each month.

I did this with my daughter's loan (she graduated college in 2005), and so far so good. Just do what you can do.

I think if you are paying something . . . they may offset any wage garnishment attempts.

It you are not paying the required payment, it will not stop it going into default, particularly with private loans. They will default you and then sue you even if you are paying.