I am student-loan borrower, and have a case against Sallie Mae. My first statement is I DO NOT OWE ONE PENNY TO SALLIE MAE BUT SALIIE MAY DOES TO ME. My account is replete with fraudulent loans for which SM never provided promissory notes, payments that are not recorded, overcharge of interest payments, fraudulent deferment claims along with fraudulent capitalized interest. I have never been in default, making my monthly payments religiously since 1989. On January 7, 2006, I sent Sallie Mae a letter delineating all the problems with my account, and requested a refund and closure of my account, but nonetheless Sallie Mae has ignored. Never been in default in the past, until November, 2005 I had regularly made my monthly payments. Recently, my college returned $20,000 Direct loans to US Department Education; the College misused by showing me a degree student after awarding me a diploma. Sallie Mae holds these loans in a consolidation account, notwithstanding that this consolidation was illegal and I had complained about it to all government agencies and BB, FTC, but to no avail. In the present, although Sallie Mae has received the money for the returned Direct loans from the DOE, Sallie Mae has never made necessary adjustments I requested through the letter of January 7, 2005. Instead, Sallie Mae kept harassing me for monthly payments for the fraudulent $54,0000 consolidation. As of today, I have no binding promissory notes with Sallie Mae for this $54,000 debt. More outrageous, SM did not give a d**n to my 10-page letter to the CEO Al Lord, delineating all the problems per item loan with a request for refund, instead waited until February for a new interest rate increase (to 6%) and send me a letter for more interest payments for a non-existing consolidation or non-existing updated consolidation. Everyday Sallie Mae calls with usual threads. I cannot imagine this is the United States of America where innocent and honest citizens are being subjected to frauds, systematic ripoffs, credit damage, and a life-time entanglement of debt under the green light of the US government, because they needed to finance their education.
I have several issues against Sallie Mae. For example: Sallie Mae has grossly inflated my debit balance without promissory notes, and despite my request Sallie Mae has never provided with the missing promissory notes; Sallie Mae denies thousands of dollars monthly payments I have made over the sixteen years for which I have the Payment History issued to me by Sallie Mae, proving the actual amount of payments I have made. Sallie Mae tinkered with figures on the documents (I have the copies of tinkered documents). Without my authorization, Sallie Mae entered me into the consolidation in 2004 for the Direct loans that Sallie Mae purchased from the DOE with only a fabricated electronic signature on an internet application (not a genuine code). Sallie Mae has charged my account for 9 years in a row for the loans that were cancelled but I had no recourse but pay in order to maintain my good credit. Sallie Mae has applied capitalizations interest charges without any cause, although I have never applied for economic hardship but Sallie Mae claims that I have for which Sallie Mae has produced no evidence (economic hardship deferment applications). Sallie Mae has created double entries in my Payment History for non-existing loans (I have never borrowed) as justification for debit balances fraudulently increased by several thousands dollars.
As for the letter (of January 7, 2006) I laid out all the problems of my account in detail per item loan and then offered reconciliation, and requested a refund for overpayment (please see the attached letter). Also requested were: the promissory notes missing but Sallie Mae has charged my account for without them for 16 years, explanation for payments I have made but Sallie Mae denies. Unfortunately, the US DOE has given a deaf ear to all these problems I have reported in earnest in the last two years. Under these circumstances, I have stopped making monthly payments since November, 2005 as I feel that I have been enslaved by Sallie Mae. As a decent and law-abiding citizenI pay my bills and never have been in default with my student loansI feel that I can no longer endure the unjust act, corruption and crime regardless how much I am worried about Sallie Mae's notorious ruthless debt collections practices. I put my life on hold trying to meet the financial and scholarly demands of my education. I am so upset over the fact that our government has given a green light to this high crime against innocent citizens facing tripled, quadrupled student loan debts by the loan shark Sallie Mae building up fortunes out of financially strapped college graduates to such extent that loan lenders have seriously damaged loan borrowers' credit, and because of that loan borrowers lose their chance for employment.
We need our media to voice the corruption of US government and loan sharks against powerless student borrowers, how the US government by conspiring in this crime with the loan industry has violated students' constitutional rights for financing college education, fair debt, credit protection and employment. Through a vigilant exposure of media on heart-wrenching stories of student borrowers, we can enlighten the American public to rally against injustice, crime and corruption and in turn pressure our law makers to bring about a change.
Please consider to contact student borrowers to publish their stories you will find at www.loanjustice.org and a few other organizations referenced on this website. You will hear stories of borrowers with most poignant ones on one extreme, such as a young woman suffered from cancer, could not work and yet was forced to pay student loans. Under stress, she took her life finally. You will hear my story that I am a middle-age immigrant woman who worked so hard to get a good education, went to graduate school only to receive an invalid diploma by a prestigious college where I had borrowed student loans for a worthless diploma I recently retuned to this prestigious College for cancellation. I have never been in default, maid timely monthly payments in time for 16 years. Nonetheless, under the current circumstances of Sallie Mae fraud and predatory practices (accounted above), I stopped making payments to Sallie Mae as I feel enslaved in the face of fraud and ever-growing debt--no matter how diligently I made my monthly payments--and in the face of the disgrace of this prestigious college who failed to take up my case and deal with Sallie Mae. In the face of a fraudulent consolidation Sallie Mae imposed on me with a fabricated electronic signature on an internet application (not even a promissory note), Sallie Mae increased my debt to $54, 0000, forced me to make payments. My initial debt in 1989 was only $7,250, and I paid it off in 1996 with the total payments of $11,000. And then I borrowed $18,500 in 1996 and repaid SM $30,000 as of October, 2005. Today, I owe nothing to Sallie Mae. As other borrowers, I have kept paying Sallie Mae even though in the fear of losing my credit and knowing that Sallie Mae will continue denying payments, falsifying the payment records, and in turn inflating my debt more and more into the figures I will never be able to pay in my life time. But, in the present, I refuse to yield to this high crime but seek justice.
You will hear stories of borrowers who were unemployed and burned with parental responsibilities, they couldn't make monthly payments for a while only to see their debt multiplied, and for a life-time would not be enough to pay it off. In the stories published on Student Loan Justice, you will see borrowers, without employment, have faced steep late charges, deferment capitalization charges, and as a result, paying only for the interest for a life-time debt; bogged down in their spiraling debt they could not afford to start a family, buy a home and have children. Borrowers who have lost jobs and along with it, their credits because they could not make monthly payments so got trapped in a vicious cycle of unemployment, bad credit and therefore no employment.
Kew Gardens, New York