Posts Tagged ‘forbearance’

Why I don’t like Sallie Mae

Well, for the obvious reasons. They are oppressive and there seems to be no end in sight for their billing tactics. We all know that recently a lawsuit was filed against Sallie Mae, SLM and subsidiaries for violating federal law. One of the options for damages is to have your student loan balance reduced instead of receiving an actual monetary award. Let’s see all of the billions of dollars in student debt, billions of consumers/students’ whose privacy rights were violated, attorney fees, court costs. I think each student will have a calculable $100 (that’s being generous) deduction.

Anyway, I was behind on the private student loans of which I have two (2). Scrimping and sacrificing to make my account current. For some reason most of the customer service representatives are vindictive women who hate their lives and take joy in making you deal with them. The other day I set up an auto payment and made a sigh of relief. This rude and cantankerous woman chuckled, literally in my ear and said even with these payments you are [this amount of time] behind. She actually had joy that I was still a little late on the most current payment. These people are sick and I’m sure they train their staff to the lowest customer service representative to the CEO that student borrowers are commodities which can be bundled (consolidated), traded (sold) and mocked. I say do whatever you can to pay off any private loans you have and let them see a grand reduction in student loan debt. Let these customer service representatives lose their jobs and see how it feels to struggle with barely anything to try to do the right thing while this corporate monstrosity makes a mockery of your effort. That my dear, will be karma.

How Benevolent of You Sallie Mae

In this episode of why I went to law school we will discuss Sallie Mae’s new option. Congratulations you qualify for EXCESSIVE DEBT FORBEARANCE. There are several things wrong with this statement: 1) why does Sallie Mae make it sound like I will benefit for having excessive debt? 2) why is Sallie Mae trying to make a forbearance a good thing 3) when did this option become available, is it like a certain amount of interest accrues and I get “reward points” in the form of different ways to keep the borrower further in debt? 4) or is this one of those smoke and mirror programs that the federal government claims will benefit everyone like those home mortgage modifications which put many people in a worse financial position had they left their mortgage in its current form or just allowed the home to foreclose.

Sallie Mae isn’t doing anyone a favor, and let’s be honest it doesn’t intend to. Sallie Mae is probably a worse rip off than Fannie Mae, at least with the latter you have something tangible to show what you bought–the collateral. With student loans you just have broken promises, lost dreams, living paycheck to paycheck, a headache, anxiety attacks and probably at some point a nervous breakdown.

Congratulations: We at Sallie Mae will continue to capitalize more interest on your already unbearable student loan accounts with the further obligation that if someday you get that platinum level government job you may be able to pay us off before you die. In the meantime we’ll make it sound as if we’re doing you a favor, in the meantime the capitalized interest will go to further finance our student loan schemes for the fresh prey ready to be devoured by our all too willing loan officers.

So, since Sallie Mae acknowledges that I paid too much for a mediocre education as it deemed my student loans excessive debt, instead of forgiving a portion of the debt, they show their benevolence by compiling more interest to increase your overall debt amount  in this known collapsing economy.

Next level: ethereal, because you will die before you can get the Sallie Mae monkey off your back and before the federal government does anything to help you.