• Report: #244508

Complaint Review: Sallie Mae

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  • Submitted: Tue, April 17, 2007
  • Updated: Thu, May 15, 2008

  • Reported By:Tustin California
Sallie Mae
6000 Commerce Pkwy Laurel, New Jersey U.S.A.
  • Phone: 800-55*3220
  • Web:
  • Category: Loans

Sallie Mae Auto Administrative forbearance when requesting derment. ripoff Laurel New Jersey

*Consumer Suggestion: I agree with Jake on this one.

*Consumer Suggestion: A Must Read!

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Sallie mae ripped me off by applying a forbearance on my account automatically when requesting a derment. which has cost me thousands.

It started while I was a full time student in school, just paying $10/month until I finished. Well my 1st real payment was due one month, about $300. Because I was still a full time student, I called to request a derment to continue paying $10/month for another 3 months, they said okay, sent me a form for change of plans, and it states "IF you have any deliquencys, you may be charged capitlized intereste, ect, ect"

Up until this point I recieved my bill via email every month before it was due. after I sent this form back I stopped getting my emails with my bills due, I figured my payment status was up in limbo or some thing for processing? One day I get an email to pay my bill, except its past the due date already (NOTE this is my only way of notification to pay the bill) So I paid the bill plus a $20 late fee, which I tried to dispute but never got a response. Because of this they charged me $975 capitilized interest with out notifying me, I found out by reviewing my bill 24 months later, paying about $5,000 my original balance is HIGHER then my principle balance!

when calling sallie maes support line for this, they have told me so far 4 different reasons why I was charged this capitilized interest, and why I have a forbearance on my record. Some of the reasons include

1) I requested a forebearence (not true)

2) they attempted to get current enrolement status from my school but never recieved a resonce so they place an admistrative forbearance on my loan, and placed it back in repayment status (why is this my fault, why wouldnt i be contacted/notified)

3)i had a late payment, (not true) and my credit report backs me up.)

Sallie mae is very sneaky, If i was violated in any way this isn't legal, please contact me if their is some thing I can do. I would love to some how be a part of a class action lawsuit. What it comes down to is I requested to contiue to pay $10 for 2 extra months, and I'm now paying thousands with out any type of warning or notification even. You have to wonder how many people don't even notice.

Dave
Tustin, California
U.S.A.

This report was posted on Ripoff Report on 04/17/2007 07:37 PM and is a permanent record located here: http://www.ripoffreport.com/r/Sallie-Mae/Laurel-New-Jersey-08054/Sallie-Mae-Auto-Administrative-forbearance-when-requesting-derment-ripoff-Laurel-New-Jers-244508. 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 Consumer Suggestion

I agree with Jake on this one.

AUTHOR: Ex-consolidator - (U.S.A.)

Sorry Dave, but Jake is correct. When you request a Deferment you must obtain the paperwork and complete it. Your lender will put you into a Forbearance until the paperwork is completed and approved. If you are not approved they can leave you in the Forbearance because you requested a suspension on payments which is what Deferments and Forbearances are but you did not qualify for a Deferment. YOU CAN NOT REQUEST A DEFERMENT OVER THE PHONE. You must obtain the proper Deferment paperwork that coincides with the type of hardship you are experiencing, I.E. Economic Hardship, In-School (Re-inenrolled or improperly reported), Unemployment, etc. You also must send in all required paperwork to get the Deferment processed, such as payment stubs (at least 4 weeks worth), tax returns, proof of unemployment, etc. If you do not send in this paperwork they will deny your Deferment and place you into a Forbearance because you requested a payment suspension but only qualified for a Forbearance. Which interest does accrue during a Forbearance on ALL TYPES OF FEDERAL LOANS. HOWEVER! If you do qualify for a Deferment what you can do is this....obtain the proper paperwork which you can download on Sallie Mae's website. Complete it in full, send in all required proof of income, student loan indebitness, etc. when completeing the paperwork it will ask you for a start date for your Deferment put in the date that you originally requested. Note: It does not matter if that date is in the past because you can back date a Deferment to when you were first eligible. IF APPROVED, it should correct any interest accrual on subsidized portions of your loans and any payments that may have been late. Hope this helps you out a little bit.
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#2 Consumer Suggestion

A Must Read!

AUTHOR: Jake - (U.S.A.)

"Interest charges continue to accrue during a forbearance period...

My lender may grant me an administrative forbearance for up to 60 days in order to collect and process documentation supporting my request for a deferment...

If I choose not to pay the interest that accrues on my loan during any period of authorized forbearance, the interest may be capitalized...

Capitalization of interest will result in the unpaid interest being added to the principal balance of the loan."

Sallie Mae didn't write that. Uncle Sam did. It's in the promissory note to all federal student loans. The one you had to sign when you took out the loan.

Per the Higher Education Act it's very legal. You agreed to it by signing for the loan. Read.
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