• Report: #996307

Complaint Review: sallie mae bank

  • Submitted: Sun, January 13, 2013
  • Updated: Mon, January 14, 2013

  • Reported By: Darryl — Perris California United States of America
sallie mae bank
Internet United States of America


*Author of original report: if im wrong then how did you ever end up finding this post?

*Consumer Suggestion: I think...

*Consumer Comment: comments

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I am a vietnam era veteran, and I enrolled into (RCC) Riverside City College, under the recently new (VRAP) program the VA opened for un-employed veterans ages 35 to 60 years of age. The VA is paying close to $ 1,500.00 dollars a month to attend school to obtain a certificate or degree in high paying jobs that are in demand.

So I get approved for (both) the VRAP & Fafsa grants. Now Im ready for the Fall semester 2012, and I decide to take coarse's in HVAC.

So I started classes on Aug. 27th, 2012, and I realized that my 1st (Disbursement) is the (Fafsa) grant from the federal government, but that was one month into the coarse! So now I have to 'beg, borrow, or steal' to come up with money to buy the necessary class materials which were mandatory to have by the (2 week) of school. (The school did not provide a avenue where student's who fafsa grant's were approved, could obtain school materials on credits through the College Book Store while waiting on their disbursements. And the school could deduct the funds from a student's disbursement before issuing it to the student).

Now Im going over my (RCC Financial Aid Award Letter) again and it's telling me to: (1) Sign Up for Your Sallie Mae Debit Card to receive your (Fafsa) disbursement.

 (2) By signing up with Sallie Mae [Please allow 10 days] for Sallie Mae to disburst your Federal financial Aid on your new debit card.

Hold Up? if my 'Disbursement Date' to receive my federal grant is on the (18th, Oct. 2012), why in the hell would I let Sallie Mae ' hold my Federal Disbursement for 10 days', "when I have been desparately awaiting this income to re-pay my debts, as well as catch up on materials I had yet to purchase in my classes", just to let 'Sallie Mae' obtain "Interest" which don't benefi me?

So I go to the Financial Aid Office and ask one of the financial aid counselors this question: "If my 'Disbursement Date' is legally on the 18th, of Oct 2012', can I request to have my 'disbursement' issued in a 'check' by the school on that date?". The financial Aid Office told me; " Mr. Smith, this is the 'only' way we disburst the financial aid, through Sallie Mae, we no longer issue checks from the school".

I further questioned this counselor by asking her; "Is it 'School Policy & Regulation' to [ further delay a student who is depending on this grant for schooling, to make them wait 10 additional days just so the school 'RCC ' can earn 'Interest' on our Federal Grants?. The Financial Aid counselor replied; "Mr. Smith, if you dont want to use Sallie Mae Debit Card, if you realy want a "check", you'll be waiting an additional 2 to 3 weeks more".

So I go 'online' and research Sallie Mae Bank. Im reading that Sallie Mae Bank is a [online banking institute], has nothing to do with our Federal Government, is a [private high yeilding investment banking-on the NASDAQ firm somewhere in Europe].

I go back to school the next day and ask to speak with a Dean, or Supervisor. When the 'Director' came to speak to me, I asked her the very same questions. Immediately she starts trying to steer me in different directions in which I was not intersted in seeing or going. I maintained my questions and watched this Director fumble over her words t think about what she could tell me next. I gave her a 'way-out' and said; " let me speak to who's ever over you ", and the Director steered me to a Dean over Financial Services.

When I asked him the same questions, he too began to fumble and try ro steer me in another direction. All in all, a couple hours later I had a audience of several Deans, Professors, Vice Presidents, counselors, they bombarded me with bullcrap to detour me from my questions, try tried the 'good cop/bad cop' tatic on me, anything they figured would scare me into letting things alone and going with the flow.

Now its not about the Federal Aid, or RCC illegally withholding a student's fund that the student is responsible for. Now its about, "every student that was 'forced' to drop out of school, because the school thought it more important to steal a student Federal dollars to earn a quick high yeilding interest.

I have yet to get a answer to my question's, and when I asked to see the "School's Policies and Regulations", I was denied that as well.

(Note) When a student sign up for a Sallie Mae debit Card, a student has to find certain 'atm's' to use, so not to incur atm charges ranging up to $ 8.00 or more. RCC does not have the "ATM" (AllPoint ATM) on campus which is a 'no-charge' atm to use.

So legally, a student that is forced to sign up for Sallie mae Debit Cards, these student actually lose a huge percentage of their grant monies to paying, High Interest Rates, ATM Fee's, etc. RCC first abuses a student's Federal Grant Monies, then ships our Federal Aid Dollars to on Online Bank somewhere in Europe, where there investor's capitalize off of the American people's tax dollars.

There is so much more I would like to tell you about school's that are taking advantage of Federal Dollars allocated to disabled and disadvantaged kids,  parents and adults.

So now a disadvantaged student is forced to drop from school, and has to suffer a negative GPA all because the school has-designed a Disbursement schedule that is made to cause a student to fail, and thereby leaving no questions on the part of the school.. It makes the government think that the student was at fault, and which will deny that student future aid later in life.

This report was posted on Ripoff Report on 01/13/2013 07:23 PM and is a permanent record located here: http://www.ripoffreport.com/r/sallie-mae-bank/internet/sallie-mae-bank-RIVERSIDE-CITY-COLLEGE-RCCS-GREED-CAUSES-FEDERAL-AID-STUDENTS-TO-FAIL-CO-996307. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 Author of original report

if im wrong then how did you ever end up finding this post?

AUTHOR: d smith - ()

first i will assume your a part of the student body at rcc with obviously enough time on your hands to read ripoff report.

second,  let me say this, whether its the first federal disbursement your receiving or the twentieth,  at no time can  a student pinpoint the exact date of his\hers federal disbursement, a 10 days grace period  of holding up a students disbursement is 10 days further behind that student gets in purchasing their necessary school supplies. obviously your not aware of  the fact that this large amount of funding isnt on some secretary's desk  awaiting on her to input your name on a check to send out to you,  this is all done electronically so that 10 days grace period is for interest.

you seem to further forget that sallie mae  is handling  probably the majority of our educational institutes federal   grants, loans, and disbursements,  so  why dont you visit your banking institution and ask them this, how much interest could you earn in 10 days if you deposited a few hundred million dollars , better yet also check out student s who depend on financial aid gpa and failing classes as a result of being too far behind in their class studies to maintain a passing grade.

if a student  cant afford to purchase his\her school study materials  within the first couple weeks of class how can you expect that student  to maintain a satisfactory gpa? that professor has a schedule  to maintain in getting through a certain portion of their class material in order to complete there study materials before the semrster ends. why did the school stop issuing checks? why doesnt the school  have atms on campus that accept  sallie mae debit cards without the high transaction fees!!?

the point in a nutshell is simple, the schools are interested in paying their professors and faculty and can give a dam about student education or acheivements and why should they? there will never be a shortage of indigent individuals applying for grants for the purposes of advancing their education, what the present in place system is doing is,  destroying the dreams of  people who  wanted a uchance of furthering their education by leaving them with screwed up gpa's and possibly in debt.

and you  say its okay that a foriegn investment group with no interest in the advancement of  our nations education be allowed to monopolize on our tax dollars?

im going to leave you with that because anything i say is bypassing your consious as a citizen of the US and you could give a dam about americas furture generations education.

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#2 Consumer Suggestion

I think...

AUTHOR: tlowe22 - ()

I believe that you have the 10-day thing incorrect. I'm currently enrolled at RCC & I've been informed about this debit card. From what I'm reading, you may be misinterpreting what the 10-day wait is for. 


The 10 day wait is for the actual debit card. When you "legally receive your first disbursement" Sallie Mae sends out the debit card, which can take up to 10-days. Your money is on the card, not building interest, you just have to wait to get your card. That is clearly explained to every student when you sign up for the card and that is probably the reason you got little to no answers from the staff.


You only wait 10 days when you receive your first disbursement. Once you have the card in your possession, your following disbursements will be deposited to the card within 24 hours of your disbursement date.


Since it's been a year since you posted this, I'm assuming you've been receiving your money on time and not waiting 10 days. Everything should cleared up for you now, but I would still like to submit a comment on this so that no one else reads your report and accepts that information. If I am wrong, then I deeply apologize.

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#3 Consumer Comment


AUTHOR: Jeanski - (USA)

It does sound like the financial aid process at RCC could be streamlined a little, but you are also operating under some misconceptions.

Sallie Mae ("SLM Corporation") is an American company incorporated in Delaware. You can check their SEC filings to verify. They 100% American :-)

As for the disbursements being held to gain interest, that's on Sallie Mae, not the school. A 10-day waiting period isn't unreasonable. The fact that there's no free ATM certainly is. Most schools have gone to debit cards rather than checks because it's far more economical.

My school once toyed with letting students charge their books ahead of financial aid disbursements. The problem with that is if the student drops out and the funds are returned to the government, the school has to go after the student. That's costly and time consuming.

The bottom line is that students shouldn't depend solely on financial aid to attend school and pay for books.  It just isn't realistic.  Students are expected to be able to front the money until financial aid arrives.

You might want to discuss this with the VA Certifying Official at the school and see if s/he has any suggestions.

Good luck!

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