Sallie Mae Helps 2 Million Customers Avoid Student Loan Default

During the last 12 months, Sallie Mae helped more than 2 million customers resolve their past-due accounts and avoid default on $38 billion in federal and private student loans. In addition, Sallie Mae celebrated 422,000 customers as they successfully paid their student loans in full over the past year.

Sallie Mae’s college planning tools, continuous communication with customers, and loan default prevention programs are critical elements toward helping customers preserve their good credit and access lower-cost credit in the future, taxpayers save dollars on federally guaranteed student loans, and colleges retain their eligibility for federal financial aid for students.

Lee Ann and Joshua R. of Pocahontas, Ark., are examples of how Sallie Mae helps customers successfully manage their student loans. As the young couple had their first child and established a career in business, there were several occasions when they fell behind on Joshua’s student loan payments. A Sallie Mae default prevention specialist reached out, providing information and counseling on payment options that helped them stay current. Last year, they paid the remaining balance on Joshua’s student loans. The experience taught them serious life lessons about money management—lessons they will carry with them when they eventually take over the reins of the family’s third-generation furniture business. “We are nearly debt free now,” Lee Ann says. “And nothing could feel better.”

For 24-year-old Lauren J., student loans served as an invaluable stepping stone in helping her get one step closer to a career in the culinary arts. After graduating from Luzerne County Community College in Nanticoke, Pa., Lauren’s dream was temporarily deferred courtesy of a tough job market and a depressed local economy. Lauren was contacted by Sallie Mae, and offered a temporary repayment solution to help with her financial issues and steer her back on a successful repayment track. She has since paid off her student loans in full. Lauren’s advice for others who may find themselves facing repayment difficulties with their student loans is simple: “If you keep in contact with the people you owe and show them that you’re making a concerted effort to live up to your responsibilities, it’s more likely they will take the time to understand your situation and work with you to develop a plan,” she says.