Okay. Here's my ordeal with SM.

I have a PRIVATE student loan with them (not a government loan in any way whatsoever) for $11,000 (total due after I pay their outrageous interest rate $16,000).

My loan became due for repayment with them in early 2008. I didn't have the money at the time to do so and asked for a deferral. Got it for 3 months, no problem. When the repayment was to start up again, I had just gotten notification that I was going to be laid off from my job within 30 days and told Sallie Mae such and they agreed to defer my loan again. Sent me the paperwork which I sent back to them. I get a letter a few days later telling me that I'm not qualified for "the deferral offered" and need to apply for a different type, yet the paperwork was exactly the same as before. So I sent it back to them.

In the meantime, my company managed to place me in another area, so I wasn't laid off. However, I started receiving, on average, about 8 phone calls a day from Sallie Mae collections at my work number regarding my loan. Now, normally I would just ignore a phone call if I don't recognize the number on caller ID, however because of the area I was now working at, all my phone calls are routed through a security station first before being forwarded to me. Which meant a log of the number of times they called me. Supervisor got wind of it and told me to handle it - meaning the company doesn't want me getting these types of personal phone calls at work.

I sent Salle Mae a C&D letter asking that they not contact me at my work number as it was putting my job in jeopardy and that all communication should be done via snailmail. I get a letter from some bigwig telling me that it is Sallie Mae's policy that they use every means at their disposal to contact a person whose loan is in default regardless of what that personal situation is. It also stated that if they stopped contacting me at work, then they would also be ceasing ALL communication with me, including sending me any paperwork regarding my loan, current billing statements.

Now, by this time, my loan is in DEFAULT with them since their "consumer advocates" can't seem to process deferral paperwork. I get a letter 6 months later (in Sept) telling me that I may qualify for a forebearance and I just needed to fill out a piece of paper and send it back. I did because I was once again under the gun of a pending layoff. This was done on Sept 15th 2008 and I never heard back from Sallie Mae again.

I tried calling them a few times to find out the status of my loan and all I was told was that my account has a C&D on it and they can't divulge any information to me, that I had to speak to a certain person. Several times I was transferred to that person and left a voicemail message. Never got a call back.

So now, 7 months later, I get a letter from SM telling me that my loan has gone to collections and I need to be ready to repay in full or face possible legal action or garnishment of wages.

Since SM was the one that cut all ties, even though I tried, can they actually do anything? I live in Texas so I don't know what the state law is on garnishment of wages. I do know that if they try to, it will force me into foreclosure on my home since at least 2 paychecks every month go towards my mortgage.

Any ideas on what I can try and do?

I hope someone can really give an insight on ur situation. They're probably doing that cos they know you are working...

Salliemae can be very imposible sometimes...all my communication with them as been online until I had to call to postpone payment..
I started my repayment 2008....was able to pay for 11months(paying minimum) until now..

I have a private($3000) & gov loan with them... I asked for a deferment on both loan.They said they only do forebearance for private loan with a $50 fee to process for 3months & my government can defer for 6months with no fee. I wasn't sent any papers to sign..i just called them up..paid the $50 over the phone & it was process that same day with a confirmation #.

3weeks later I got an-e-mail asking me to login to my account & check new update...there I found out that all my loans will be due in 3months. .probably them found out I'm back to work
I plan going back to school in fall2009(graduate school) & I'll ask the school to just call SM for a deferment on all loan tilll i graduate.

you are allowed ""Forbearance which lets you suspend or reduce your student loan payments under certain circumstances and for specified periods of up to one year at a time.""quote from their website. you are going to have to fight them for not processing your forebearance papers you sent to them & I hope you read through those fine-prints before signing & sending it back to them....

Whatever they do/don't tell you, the fact is a deferral is only granted when attending school at least half time. During deferral period interest is suspended on Stafford loans but acrues on all other loans.
If you are not in school or less than part time (less than 2 classes for grad school) then you may be granted a forbearance. Sallie Mae likes to tell folks that there are only a certain number of those given out but the fact is forbearance is always available (or should be) if specific conditions are met (documented loss of job, etc.) Private lenders can call their own shots, but Sallie Mae likes squeezing for the garnishments - they need that income.