Sallie Mae Horror Story Exchange Request...
I have been out of school for 6 years.
I recently ordered a copy of my payment
history from Sallie Mae, the company who
I have consolidated student loans through.
To my dismay, I discovered that while
I have been making payments of $400
per month to Sallie Mae that only about
$5.00 has been applied toward paying
down my principal each month. The net
actual effect has been that I have paid over
$15,000 to Sallie Mae over the last four years,
with only $670 being applied by Sallie Mae
to my account toward principal reduction. This
principal reduction represents a
paltry 4% of my payments.
A representative from my loan Guarantee Corporation
(they oversee Sallie Mae) today candidly shared with me that
this Sallie Mae practice was a hidden illegal and unethical *usury device*
that is being deployed by Sallie Mae on
unsuspecting student loan consolidators at the time
of their loan consolidation payment plan selection.
When I recently questioned Sallie Mae they claimed
I signed-up something called their Max-4 program
about 4 years ago. At the time that they claim
I signed-up for Max-4, I recall them stating that
Max-4 would "reduce principal while lowering
the monthly payment." In fact the principal reduction
only occurs in the last chunk of the 25-year loan something
which was never disclosed by the Sallie Mae representative
at the time—who indeed acted to mislead me—I am sure
she was reading a script written by Sallie Mae's marketing
department.
I am currently seeking anyone with a similar
story about: payments being higher than promised
by a Sallie Mae representative, or principal amounts
that will not go down as you pay Sallie Mae month
by month.
Please e-mail your story to me at: allen99...@hotmail.com.
In exchange, I will respond e-mail you with the steps
necessary to locate and receive remedy from the appropriate
Guarantee Student Loan Corporation in the state that you have
your loan in. Guarantee Student Loan Corporations regulate
the actions and practice of Sallie Mae on a state-by-state basis.
I am currently writing out the steps to share them freely with
anyone in a similar situation.
I am a fellow former collage student who is learning the hard
way. I hope this helps others before they give Sallie Mae their next
$15,000 only to find their principal only decreased by $673, as I did.
- I'm having trouble evaluating these numbers.
You say you've paid $400 a month for about 4 years on a 25 year loan.
Could you post the original amount of the consolidation loan and the
interest rate you were quoted?
- Well, you emailed me th