Sallie Mae collection agencies (SM) has doubled my principal, increased my rate to credit card rates, consolidated loans without my approval, and incorrectly posts payments and balances.
1. Do not become sick, disabled, unemployed, be in a natural disaster, or old when student loan repayments are due. If any of these happens to you, and you can't repay, your SSI, unemployment insurance, pension, and Social Security income can be offset. Your bank accounts may be seized.
2. Student loans are the only loans in the country that have NO consumer protection.
3. Student loan collection agencies are a nightmare to deal with, often having incorrect information.
4. Lenders can change your interest rate if you default, to credit card interest rates, often as high as 25%, thereby ensuring inability to repay.
5. Frequently, payments you make are not posted to the correct account.
6. Student loan collectors would rather you default than repay the loans. That way they make more money from you with their collection fees.
7. Borrowers have committed suicide because of the crushing debt.
8. In some states, your driver's license can be revoked if you default.
9. If you are FROM Sudan, come to the US and get financial aid, if you return to Sudan, your loans are forgiven (not saying this is bad, but the Sudanese are forgiven, but if you have a stroke?).
10. NEVER give a collection agency your bank account number because you are giving them permission to access your account. They may then wipe out your funds.
11. Your income tax refunds can be taken.
12. Collection agencies are like loan sharks, including 'break your legs.'
13. Death does not 'forgive' your or your child's student loans.
14. You could wind up homeless and very, very well-educated.
We are trying to organize again this "Enron" organization whose executives earn 6-digit figures at our expense. Some of us are homeless, disabled, and retired. Some of us are very young with no future to look forward to. Go to studentloanjustice.org for some more information and to ORGANIZE!