Someone PLEASE help me with my sallie mae private student loan that's
Date: Tue, 01/27/2009 - 18:10
Someone PLEASE help me with my sallie mae private student loan that's
I was just on the phone trying to get information about my loan for 2 hours. Here's the story. I've been making sallie mae payments for the past 5 months. They've accepted all the payments no problem. I didn't know my loan was in default until today (which is my own fault but that's another story for another day). Everytime I chose a option on their automated system they would transfer me to zwicker & associates. Zwicker said they no longer had my account and I need to talk to sallie mae directly. So I called Sallie Mae again and waited until I got someone on the phone. They kept transferring me all over the place for a whole hour!! So I finally got the direct number to sallie mae collections, who told me I had to deal with zwicker!! AHHH! So a lady from zwicker finally tells me I can't do a rehab on a defaulted private loan. Someone please tell me what my options are? Even though I have been making payments to sallie mae, my past due amount $4230. If I keep making payments... will I automatically be in rehab? Is there any help anywhere that I can get help on this? How can I get out of default? I want to qualify for a house and this is really damaging.
Quote:Originally Posted by SOAPLADYWhy are they unfair? They ar
Quote:
Originally Posted by SOAPLADY Why are they unfair? They are offering loans to people with little to no credit, with no job, that they do not have to pay back right away. Nobody forces anyone to take a private loan....or to go to school for that matter. There are there to bridge a gap for some. There are now very few lenders left in the private loan industry. |
That's not true. I have very good credit and was a working professional when this loan was taken out. I was going back to school. I wasn't told by the financial aid administrator that this was a private loan or I wouldn't have done it and my story is not uncommon.
Numerous abuses have been reported with this system, including cases of "pay to play" where Sallie Mae gave incentives to financial aid administrators to steer students into private loan territory rather than informing them of their rights to Federal Student Loans. It was only after I had started another program at another school that an honest financial aid counselor let me know that there had been no reason for me to take out a private loan. I filed a complaint with my previous school, my tuition was partially refunded, and the financial aid administrator was fired. It came to light after my complaint that this had been going on for years. Unfortunately, the private loan was already out and now I'm stuck with it.
So your generalization that people who have private loans have bad credit and no job is not entirely true. There is also the issue of: why is money being lent to people who have no credit and no job? Again, there is a lack of responsibility within the financial sector to police themselves and everyone else gets stuck with the bill. There are no excuses for this. Period. So yes, it is unfair.
Quote:Originally Posted by AnonymousThat's not true. I have ver
Quote:
Originally Posted by Anonymous That's not true. I have very good credit and was a working professional when this loan was taken out. I was going back to school. I wasn't told by the financial aid administrator that this was a private loan or I wouldn't have done it and my story is not uncommon. Numerous abuses have been reported with this system, including cases of "pay to play" where Sallie Mae gave incentives to financial aid administrators to steer students into private loan territory rather than informing them of their rights to Federal Student Loans. It was only after I had started another program at another school that an honest financial aid counselor let me know that there had been no reason for me to take out a private loan. I filed a complaint with my previous school, my tuition was partially refunded, and the financial aid administrator was fired. It came to light after my complaint that this had been going on for years. Unfortunately, the private loan was already out and now I'm stuck with it. So your generalization that people who have private loans have bad credit and no job is not entirely true. There is also the issue of: why is money being lent to people who have no credit and no job? Again, there is a lack of responsibility within the financial sector to police themselves and everyone else gets stuck with the bill. There are no excuses for this. Period. So yes, it is unfair. |
Most people borrowing have none to minimal credit (you cannot get a private loan if you have bad credit) and most are unemployed. It is a generalization.
All you had to do was look at your financial aid report and read your prom note. It would have listed your stafford loans and what your unmet need was. You then would have had to apply seperately for a private loan as privates are not part of the FAFSA package. That is if you infact filled out a FAFSA.
As for the lawsuit, it had nothing to do with steering students to private loans. It was all based on preferential lenders....financial aid officer steering students to SLM vs Citibank or any other bank for that matter. Sallie Mae had no risk when lending federal funds....why would they bother pushing private loans??
because over the life of a private loan they can make a heck of
because over the life of a private loan they can make a heck of a lot more money from it. What are the odds that a student will be able to pay off a private loan "as quickly as possible" to avoid the massive interest charges? Not likely and so SM makes a ton of money from their capitolized interest system.
And why shouldnt salliemae make money off this loan? They lend
And why shouldnt salliemae make money off this loan? They lend it with no guarantee and the default is higher despite the fact that some got very good interest rates. Nobody forces anyone to borrow these funds. It all comes down to being a priority.
BS. Salliemae displays their unethical behavior by charging usu
BS. Salliemae displays their unethical behavior by charging usurious collection fees and penalties ballooning the principal to an amount that can never be repaid. Furthermore, Sallie Mae lent these loans where bankruptcy is not an option giving them a license to haunt a borrower to the day they die. Who needs a guarantee! LOL.
When you sign a prom note, you agree to those collection fees.
When you sign a prom note, you agree to those collection fees. Dont like it? Don't sign on the dotted line.
and when society brainwashes 18 year olds into thinking that a c
and when society brainwashes 18 year olds into thinking that a college degree will always pay off handsomely in the end and that student loan debt is "good debt", why wouldn't he or she sign on the dotted line?
Society? Give it up! What about parents giving advise or taking
Society? Give it up! What about parents giving advise or taking personal responsiblity?
There are sites out there you can go rant and rave....people have to work with the system as it is now ...not how they wish it was.
Quote:Originally Posted by SOAPLADYyou put the consumer protecti
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Originally Posted by SOAPLADY you put the consumer protections is place and all the remaining lenders will fold up. Then what will people do? Again higher education is not a right but a privilege. People choose to go take on these debts...nobody forces anyone to borrow. Options are working your way thru school or going part time. Or attending an affordable school. Interest on private loans are credit based and range for 3-16%...hardly loan shark rates. Funny thing is I see people taking $30k out at high interest rates for car loans but bitch and default on their private school loans....the loans that got them an educatiton for life. A car maybe lasts 10 years??? |
Well thank God your able to be so high and mighty! I called and asked to get my loans extended 5 years so that I could make the payment. They said no. If their not willing to bend any then they can go after people who have nothing and end up with nothing still.
Quote:Originally Posted by AnonymousWell thank God your able to
Quote:
Originally Posted by Anonymous Well thank God your able to be so high and mighty! I called and asked to get my loans extended 5 years so that I could make the payment. They said no. If their not willing to bend any then they can go after people who have nothing and end up with nothing still. |
I thought this was a care forum. The moderator seems to be really rude. If you have no advice to help someone don't sit here as a moderator and talk down to people seeking help. We all signed the loan agreement, yes. Times have changed the job market has changed not what any of us hoped for. I know when going to a private school I signed on the line going with what I hoped was going to make my life better.
My life is worse than when I signed and I'm not looking for a way out, just a reasonable way for me to pay my bills.
I have not the ability to stay up 24 hours a day and work, which is all you seem to suggest.
Sometimes the system has to learn to change or itself become obselete.