I recently heard about getting all Federal-based Student Loans consolidated into 1 monthly payment from a friend of mine. I told him that I was having to make a total of 9 payments on 9 different due dates with 2 separate accounts to Sallie Mae. He was floored, so he said to go to the US Dept of Ed website to apply, and they would help...or so I thought.
So, I went to the US Department of Education website like he had done and applied. I got a confirmation that my consolidation was approved and that it was paid out in order to payoff the existing loans and start fresh. Shortly after, I received letters in the mail from Sallie Mae that they would be servicing the "new" Dept of Education loan (which was supposed to pay off and thereby consolidate the existing Federal loans). I thought everything was fine.
A week goes by, and I decided to login to my Sallie Mae account. Lo and behold...Sallie Mae has RIPPED ME OFF!! Not only did they NOT pay off the previous loans as part of the consolidation agreement, they ADDED the "new" consolidation loan to my previous balance and show that I now owe DOUBLE what I did before...as if I got brand new loans to go back to school!!! WHAAAAAT?!!!
The US Dept of Ed website specifically states:
3. Direct Consolidation Loan identification numbers. Depending on the type(s) of federal education loan(s) that you choose to consolidate, your Direct Consolidation Loan may have up to two individual loan identification numbers. However, you will have only one Direct Consolidation Loan and will receive only one bill.
Why do I now have 2 new ADDITIONAL loans for a total of 11 separate bills and due dates Sallie Mae? Why did you NOT pay off the existing Federal-based loans as required by the US Dept of Education to cancel out the "old" multiple loans?
If there is ANYONE out there who has been ripped off like this, please respond. Sallie Mae's repayment fraud MUST STOP!! They're using OUR TAX DOLLARS to rip us off!!