Harassing Collections For School Loan

Did you apply for economic deferment before it defaulted??? Or talk to the lender about lower payments? With federal loans, you had these options.

You've defaulted and well yeah this has messed up your credit. You wouldnt be able to buy a house and cars loans would come with pretty steep interest rates. But other than garnishing your wages without taking you to court,they cannot do anything else.

Who is the guarantor of this loan? It should be on the letters you are receiving from them...Sallie Mae is your lender/servicer. The letters should say who they are collecting on behalf of.

I was not eligible for economic deferment because I could not prove, by government standards, I was enemployed. Sallie Mae TOLD ME that they would not accept payments lower than about $190/permonth. They would not accept a check for a lower amount. Its almost like I was pushed into this situation. I kept asking Sallie Mae to help me because of my situation. National Enterprise said they were collecting on behalf of Sallie Mae and the government. I am not very familiar with loans and all of this stuff. They really have no way of garnishing my wages, I dont use direct deposit, and I basically pay myself. They are telling me that I owe $13,400 to Sallie Mae (with fees and everything) and they want to get me for near $19,000. This like 40% MORE of what I originally owed. Can they do that? It seems a bit like loan sharking to me. Especially when 14.9% of the $13,400 is interest too.

Again....if this is a federal loan, Naitonal Enterprise is not collecting for Sallie Mae but for you guarantor. Sallie Mae would have defaulted you to you guarantey agency. If the letters say they are collecting on behalf of Sallie Mae, you have a private loan, non governent one. Read the letters they sent you.

If this was a federal loan, unemployemnt deferments are not difficult to get by any means. A seperation form from your previous employer, unemployment check. If you were never employed you should have applied for economic deferment. If this was a private loan, Sallie Mae doesnt have to offer you unemployment deferments at all.

Federal loans by law charge you 24% in collection fees when you default.

Private loans generally come with a higher interest rate. And yes, they are very legal.

My fiance is in the same situation. He is physically disabled and on disability through the state. His $13,000 balance on his school loan has now turned into $26,000 because of interest. Sallie Mae is truly evil. They make it SO easy for a young person to get a school loan. They hand them out like candy and then don't care if you are starving as long as they get your monthly payment. He hasn't been able to pay his loan for years and it is now in collections. The collection agency is threatening to sue him. They contacted him the other day and told him he had until noon that day to give them $10,000 or they are taking him to court. They encourage people to not pay their bills or rent so that they can pay their school loan. We've tried SO many times to set up reasonable payment programs and every time they refused. They really do force you into the situation. I will laugh if they try to take him to court. His only income is state disability and he only gets about $800 a month to live off of which we explained to them. They don't even care and make you feel like a looser because you don't have $10,000 just laying around to pay your loan.

Your fiance need to take on some responsiblity. Without Salliemae, how would he have paid for school? It sounds like he borrowed private loans...Sallie Mae is no different than any other lender out there. There is limited deferment and very limited hardship arrangements. It is similar to a consumer loan. He signed the prom note and unfortunately private loans do sue actively sue.