I have an issue with Sallie Mae as they ripped me off on the interest rate on my student loan. I did a loan consolidation for 3% with Sallie Mae in June of 2005. After I sent in the paper work, Sallie Mae dragged their feet on the consolidation. After dragging their feet for several months Sallie Mae then stated in a 3 different letters to me that they were have problem with the consolidation due to "problem with reference" or "where having issues with reference" or "lack of references", even though these references are the same references I used to get the student loans through the FAFSA site.
First, a letter sent to me from Sallie Mae stated that I had a lack of references; I could not understand this as I provided two references on the consolidation application like the application requested. Second, another letter I received from Sallie Mae stating we are having issues with your references, so I updated them online on Sallie Mae's website, I thought things were good, I was wrong. Latter on within a month after updating the references, Sallie Mae then called me on the phone, I again provided my name of my references with addresses to some foreign speaking person on the phone who stated she work with Sallie Mae and who I could hardly understand as well as her understanding me.
I then received a third letter a few days later that stated, "We tried to contact you by phone for updated references but were unable to reach you". WTF, I just provided this non-English speaking representative at Sallie Mae with all the reference information, what gives. I thought this was some kind of mistake, since it came a couple days after the phone call, so I ignored it? I heard nothing more after this from Sallie Mae.
Any how, after 180 days of being out of school the loan repayment begins. Well I found out on the first payment that the interest rate was at 7.14% not at 3%. I contacted Sallie Mae over and over without any success of getting this issue taken care of. I then threaten Sallie Mae that I would withhold payment if this was not taken care of right away and that I was entitled to do this under federal law (Fair Credit Reporting Act). Sallie Mae wrote back promising to correct the issue. Next month nothing happened, so I withheld payment and contacted Sallie Mae again and offered to pay what I actually owed. Sallie Mae refused to accept the money I actually owed.
After this the problems started, I had to sent certified letters and e-mails (near a 100 e-mails) to Sallie Mae, this went on back and forth on the consolidation issue and Sallie Mae did not want to talk about it anymore but they did say they did nothing wrong. I was getting nowhere with these idiots. Then after a few months of back and forth e-mails, Sallie Mae took the position that I had defaulted on the loan and sent the collection agencies after me. Eventually, after a year and half of fighting back and forth with Sallie Mae and the many collection agencies, Sallie Mae turned the account over to NSLP as a defaulted loan. Sallie Mae never disclosed to any of the collection agencies or National Student Loan Program that I was disputing this loan because of the interest rate, Sallie Mae stated that it was an uncollectable debt and I had defaulted on the loan.
I let NSLP know what was going and I let the Department
of Education know as well. Both stated that they would review the case, but the Department of Education dragged their feet as well; way past the time limit that was establish to answer my complaint, only after I complained about them missing the deadline to respond, did they answer my complaint unfavorably. NSLP stated they would review the complaint, but never followed up at all, I still am waiting on the court review they promised. In 2009, NSLP did a treasury off on my income taxes for 1500.00 and then told the credit bureaus that I owed $80,000.00 when in fact my loans where less than $14,000.
I have asked the credit bureaus to remove this information and I provided proof. Two of the credit bureaus remove the extra money above the $14,000 but Experian did not and has refused to remove it. This ended up causing me problems with my job as I need to hold a security clearance to keep my job. The security clearance people seen this in my credit file and it has held up my clearance (not denying it or approving it). Well of course my employer, hire someone else and gave me until this October 2012 to resolve it or be totally laid off.
So, I contacted Senator Patty Murray, Congressman Adam Smith, and Attorney General McKennas office to get them involved and help resolve this issue, both legislators and Attorney General wrote letters to Salle Mae and Sallie Mae denied any wrong doing. I then provided written copies of the correspondences between Sallie Mae and me, showing that Sallie Mae had offered to correct the issue. Neither legislator has done a follow up and has done little to nothing to help out so far. Attorney General McKenna did the most foot work, but stated that their hands are tied and I would need to file a lawsuit.
As of today, nothing has been done about Sallie Mae or the National Student Loan Program by congress even after all the problems student are having with Sallie Mae. Both, Sallie Mae and National Student Loan Program are free to screw my credit up and obviously they do not have to follow federal law either. Sallie Mae and National Student Loan Program are free to put anything they want on your credit record and Credit Bureau Experian does not even verify anything that these two criminal companies report, even if you provide the documentation that proves different, like the proof I submitted to Experian that was ignored. I have been forced get an attorney and I am filing a lawsuit for damages as both Sallie Mae and NSLP are denying they have done anything wrong.
I do feel for all of you out there who are dealing with Sallie Mae or National Student Loan Program. My advice for others facing similar issues is to get yourself an attorney before its too late and it causes other problems like losing your job, loss of your income tax return check, overcharging, or garnishment. My suggestion is to contact an attorney who does consumer protection law or something similar. As for anyone considering going to school and getting a loan, my advice is dont deal with Sallie Mae or NSLP, otherwiese you will be sorry. You have been warned!
Right now I'm faced with losing my job here soon as I have been having issues getting a security clearance, because of the fraud and false credit reporting being committed by Sallie Mae and National Student Loan Program (NSLP). Sallie Mae currently has a class action lawsuits pending against them in the 9th district Federal court for phone harassment and robo calls. Other lawsuits are also pending as well as an investigation, so if you own stock in this company, I would think twice about dumping the stock before you get burned on this. I hope this helps anyone that needs the help.