Report: #1037309

Complaint Review: Sallie Mae

  • Submitted: Sat, March 23, 2013
  • Updated: Sat, March 23, 2013
  • Reported By: Ian — Hersey Michigan
  • Sallie Mae
    PO Box 9500
    Wilkes-Barre, Pennsylvania
    United States of America

Sallie Mae Student Assistance Corporation Applies payments only to interest and not principal Wilkes-Barre, Pennsylvania

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My student loans started out at $62,000. I was paying between $400 and $700 a month since 2007. My outstanding balance has since increased to $77,000 despite the payments being more than the minimum required. When I called and asked about it they stated that any online or mailed payments in excess of the minimum are applied to future interest and not principal.
I started making payments by phone for an additional $5 per payment in $2009. Since then my principal balance has only continued to increase. I have not seen a drop in my outstanding balance at all and my final payoff date has kept extending from originally 2022 to 2047. At this rate I will be dead before I'm even close to the final payoff date and the outstanding balance will be pushing $500,000.

Why is this company not being investigated for fraudulent practices? They even handle the US Department of Education Loans. Which I also have and are not going down despite my increased payment amounts.

I have also watched my interest rates increase from 6.5% to 11.75% over the last 3 years. And these are fixed-rate loans that started at 4.5% in 2005.
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This report was posted on Ripoff Report on 03/23/2013 07:14 AM and is a permanent record located here: http://www.ripoffreport.com/reports/sallie-mae/wilkes-barre-pennsylvania-18773/sallie-mae-student-assistance-corporation-applies-payments-only-to-interest-and-not-princi-1037309. 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. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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