This all started with ITT Technical Institute and Sallie Mae Corporation.
In Dec I became a student at ITT. Since the beginning, I was never able to obtain Federal Financial aid such as Federal Pell Grants, etc, so I was forced to get Private Education Loans. ITT ONLY worked with Sallie Mae at the time, and it was not an option to go with another lender. Since I was starting out after high school I didn't have too much credit, and my score wasn't that great. So the very first loan I had had a 11.25% interest rate.
Throughout the next two years at ITT, several more Private loans had to be taken out to cover their outrageous tuition cost. After attending for 1yr and 8 months, the school started going downhill from there. The textbooks were being written in India, Instructors for the most part were technically incompetent. The learning environment there wasn't good, the labs lasted maybe 30 minutes at the most, and students were dropping out like flies. Students were not being graded fairly, etc. I decided that I was wasting too much money here for the education I was receiving, so I decided to transfer my credits to American Intercontinental University Online. However, due to family issues and personal issues, I was forced to withdrawal from school for some time.
When it came time for repayment of the loans for Sallie Mae, my monthly payments were already well over 700.00 per month. At this time I wasn't making much over minimum wage and could never afford those payments. Well over time interest starts building very fast due to now interest rates of 15.25 and higher and late fees of more than 500.00 each time! I tried to keep these loans at bay by filing forbearance, but I could only do this so many times, and during the forbearance, interest still capitalized and continued to grow. I now have a
Past due amount: $685.98
Late fee (s): $552.85
Other charges: N/A
Present amount due: $1,371.96
Pay this amount: $1,924.81
Original principal balance: $34,494.00
Capitalized interest: $23,395.27
Outstanding principal balance: $54,291.40
Accrued interest: $1,301.03
Total amount outstanding: $55,592.43
As you can see, the interest over the last 3 years has grown to almost the amount of the loan itself!
Unless someone is making a very high salary, it is not humanly possible to make these payments.
I don't see how it can be legal for corporations such as Sallie Mae to charge extremely high late fees and interest like that. At this point, I can't make a payment that high to bring the loan current, yet alone keep it current. The interest that accrues is as much as a payment. At this rate, these loans would last me until I die. Sallie Mae is not only doing this to me but hundreds of other unsuspecting students. The schools don't care how they get the money so they sign you up for these loans, and don't really show you the impact it will have over the life of the loan, but want you to sign the loan application so they can get paid.
It is not possible for me to do a private loan consolidation, so I have several loans with high interest rates, yet I can't make these ridiculous monthly payments. Sallie Mae isn't exactly approachable, they will do anything to get the money, and if you can't pay it file a forbearance, or if you run out of those your out of luck. Some type of Reform needs to happen with Lending companies such as Sallie Mae, they are robbing students blind. Just recently I was able to get a job making about 45,000/year after taxes, however I have a rent payment of 1300.00/month, a 350.00/month car payment, 200.00/month auto insurance, about 300.00/month in utilities, groceries, etc.
I have no expendable income. I'm so tired of the harassing calls I get every day (about 6 per day on home phone and cell, using different phone numbers they call from) I don't know what to do anymore, people say the only way to get rid of the loans are to be permanently disabled or be dead. Hmmm. Maybe permanently disabled could be an option? I need to know if someone out there is willing to take a stand for students like me. Please HELP!!!
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