Student loans should not be a painful experience, but for many of us I believe the end result is extremely stressful. I was excited to go back to school and made the mistake of signing up for a "careertraining" loan with Sallie Mae. I signed a promisary note saying one thing and later on discovered a disclosure note where the interest rate was completely different.
The interest rate on this loan a few months ago was at 4.7% and now it is (as of my next billing statement in February) 8.25%.
Sallie Mae keeps changing the interest rate every month.
When I call and ask them about it they usually tell me to referr to the "Promisary note and disclosure information."
If I don't call ahead to find out what the interst rate will be, they don't inform me in writing ahead of time. I just get an unexpected suprise on my next statements.
The promisory note tells me they (the lender) can only change the interest rate once a year in July (an annual interest rate change). But then after intensive reading in both the promisory note and the disclosure note in fine print it reads something like, the loan has a variable interest rate. Which I believe is capped at 8.25%. But then it says it depends on what the market rate is. So which is it and how is this legal? How are you ever suppose to make any kind of progress with the payment if Sallie Mae keeps increasing the interest rate without warning to the person who has the loan?
I plan to do the following: Write a letter of concern about poor customer service and never getting a straight answer from Sallie Mae Servicing/Financing. That way I have something in wriing from them.
Please note* This careertraining loan is a private loan. No one seems to be able to give me any detailed information about this loan. The catch is (I believe) sense I consolidated my other loans, I will not be able to consolidate or lock in an interest rate with the private loan. Sallie Mae now told me in April there will be a possiblity of locking in an interest rate or consolidatiing your private loans if you call 1-800-695-3317 ext. 8105 (day) ext. 8106 (evening). They told me to call in March to find out more information.
If after writing the letter I do not get a response from Sallie Mae in writing I am reporting them to:
Office of the Ombudsman
US Dept of Education
830 first st, NE
mailstop #5144
Washington, DC 20202-5144
1 (877) 557 2575
Http://fsahelp. Ed. Gov
Sallie Mae needs to be investigated. Students need to be told the truth about this company.
The consolidation process with my other student loans I am happy with. But with the "Careertraining Loan (Private Loan)" It has been a nightmare.
Anyone have any advice for legal action?
What discrepencies should I look for in the promisary note and the disclosure note?
How do I know if Sallie Mae owes me money?
Can there be a cap on interest rate for "Career Training Loans (Private Loans).
Is it legal for a company to increase the interest rate without informing the customer in writing?
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