Sallie Mae Tops List Of Student Loan Companies With Most Complaints

Sallie Mae makes it to the top of the list of the most problematic student loan company according to the report released by the Consumer Financial Protection Bureau (“CFPB”). The company faces 46% of all student loan complaints. This number is astounding!The following issues were the most common among those who filed complaints with the CFPB:Dishonest collection practices: Debt collectors try to confuse borrowers of the absolute powers given to federal student loan debt collectors with the collection tools of private student loan debt collectors. In some cases, borrowers are threatend to have their wages garnished without a court order, social security checks seized, and tax refunds withheld.Refinancing difficulties: A lot of student loan borrowers have limited credit history when they apply for a loan, so their interest rates are often high. However, when borrowers build a credit profile, graduate, and have an income, they encounter a dilemma in refinancing existing student loans at lower rates.Death of the primary borrower: The arrangements of how a co-signer handles a loan in case of death of the primary borrower are unclear and may vary widely. The death of the primary borrower may cause a default which accelerates the balance due, making the co-signer legally responsible for payment in full. However, some private student loans allow co-signers to waive the debt upon death of the primary borrower.“Good faith” partial payments leading to default: Many report that they send their lenders checks each month, including letters explaining their financial situation. Sometimes, borrowers note that they send in more than 50 percent of their net income, but this still results in delinquency and defaults. Despite these efforts, collectors encourage debtors to pay what they can afford without informing them that it will still lead to a default.Inability to access the right payment plans: Borrowers often times find themselves unable to consult with the appropriate personnel that can give them proper repayment options. In other cases, once borrowers decide to enroll in an alternative repayment arrangement, it becomes a difficult process since personnel are not fully aware of policies or incentive plans.Forbearance fees: Borrowers who cannot afford to make their payments usually request for forbearance. Ironically, a monthly charge for forbearance forces borrowers to come up with money to demonstrate their financial difficulty.Right now, student loan debt is at an all-time high. The number of people borrowing from the government is at an all-time high and so is the number of people in default—nearly 5.9 million or about $76 billion. Collection agencies, on the other hand, are thriving and couldn’t be happier for the business, including Sallie Mae. If Sallie Mae has harassed you over a debt, whether they called you excessively, threatened you, made misrepresentations when trying to collect old debts, called you at work despite knowing you cannot receive these type of calls at work, disclosed your debt to a third party, tried to collect a debt from you that you did not owe, or left you a voicemail message without the proper disclosures, contact Agruss Law Firm, LLC, for a free case evaluation. Founding attorney, Michael Agruss, has settled over 1,500 debt collection harassment cases. Now, Agruss Law Firm, LLC, wants to help you, too.

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Submitted Comments

Sallie Mae has reported to the credit bureau of a late payment when my account actually has $1800.00 in over payments .

I cosigned a private student will sallie Mae back in 2006...the loan is in default. I would like to know what are my options? I'm no longer in contact with the primary borrower. The loan is in default. The grand total now is over 21,000. The current payment is behind over $8000...I want to get out of default. The borrow only borrowed 8,000!

my daughter deceased and my husband co-signed for at private Sallie Mae Student Loan. I'm trying to get this loan forgiven due to the unfortunate circumstances. Is this something that your firm helps with? They are coming after us to repay the loan... Sallie Mae Student Loan $85,000 Please have them email me at [email protected] Thank you for assisting me wit this troubling circumstance!

Sallie Mae has been garnishing my wages for the last two years. I have more loans from them that I have not been able to pay due to the high monthly payments they are asking for. This set of loans is about to be defaulted. They are calling my cell phone at all hours of the day and now they are calling me at work to try and get me to pay. They are calling from the number your website has listed for them.

I am permanently disabled and owe money for my student loans. My complaint is that I am receiving phone calls from sallie mae up to eight times a day. They are calling me on my land line as well as my cell phone. I spoke to a representative and asked for paperwork to be sent to me in the mail so I can submit forms to postpone my payments. I was told that I would receive them in the mail in 7 business days. I am getting upset and they should wait till after my forms have been received before they call.