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 Mike Agruss Law, for a free case evaluation. Founding attorney, Michael Agruss, has settled over 1,500 debt collection harassment cases. Now, Mike Agruss Law, wants to help you, too.