Sallie Mae Student Loan Horror Stories Bring a Slap on the Wrist
When I put out my own call for stories from Sallie Mae borrowers about its collection practices, my inbox flooded instantly with angst-ridden messages. Many of the messages spoke of being called several times a day at all hours, every day of the week whether at home or work. More than one person said they set up a separate phone number just for Sallie Mae, and several said they filed Chapter 7 bankruptcy just to stop the calls. (Filing can stop the calls, but does not usually discharge the debt.)
"My interest-only payments [from Sallie Mae] were going to be about $1,200 a month. If I were to pay that amount I would have had to either be homeless, not pay any of my credit card bills and not buy food," said Greg, a 37-year-old media specialist from Virginia. "The people I talked to on the phone ... treated me like I was some kind of delinquent because I tried to ask for some type of assistance on my huge payment. They even threatened to sue me and garnish my wages."
Another borrower messaged me that she had her tax refund garnished for several years by Sallie Mae, but those garnishments weren't applied to her debt.
"I have a receipt from the IRS showing [my refund] went to Sallie Mae. Yet Sallie Mae has no record of the thousands garnished from my tax refunds," said Carole, whose original debt of $38,000 has ballooned to nearly $90,000, mostly due to interest and fees.Assistance Project or consult with a lawyer to find out more about their rights and other resources available to them. For many, though, there is another answer. "Sallie Mae needs to go out of business," said borrower Andie, 46, of Scottsdale, Ariz. "They are feeding off of a national crisis in the economy and made a choice to not work with people. Their treatment is absurd, inhumane, unethical, greedy and frankly blatantly illegal."
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts