My son took out a student loan with Sallie Mae for his college tuition.in October, he lost his job and got behind on his student loan. As a co-signer, we were called by Sallie Mae to let us know he was behind. At that time, I was told that he was $30.00 behind on his loan (he had been making payments, but there was a portion that wasn't paid - my son told me that he pays what it says on their online billing system). I paid that amount and was then told his account was up-to-date. They then told me the next payment was due the 15th of the next month. (That is when I found out that the interest rate on a portion (private loan) of my son's loan was 18%!! How can this be - they are lending money to college bound students and charging them outrageous interest rates - - that seems illegal to me. This sounds like preditatory lending.) With regular interest rates at 6% how can any bank (especially one issuing student loan) charge 18% in good conscience?
I then called my son to let him know that his account was behind and that I had paid the $30.00 to bring his account current. He told me that he pays his student loan online and that he always pays the amount that is on the screen. He also stated that it takes Sallie Mae 1 1/2 weeks to credit his account once he makes a payment (even though it comes IMMEDIATELY out of his account) and by the time they credit his account - they have already tacked on a late charge.
Within 1 week, I received another call from Sallie Mae letting us know that he was delinquent on his student loan. I asked them how that could be since I just paid them approximately 1 week ago and at that time was told he was current. They told me that they weren't sure what was going on and they would need to look into the account. They weren't sure why the account was showing the delinquency.
Now just this week, we got more calls (they literally call us 3 times per day, everyday). We again paid them what they told us was delinquent ($168.00) - they stated that this was delinquent since December. (How can that be since my son is making monthly payments and I was told in January when I paid the $30.00 that he was then up-to-date??? I paid the delinquent amount again, and was ASSURED that he was now up-to-date until August 15.
Again, this morning I get yet another call from Sallie Mae stating that my son's account is delinquent - - when I start asking about what the problem is, I get put on hold - - actually I was getting transferred without knowing it. I then got a customer service person, who stated that he couldn't help me and he transferred me back to the collections department - once transferred it immediately went to a busy signal. I immediately picked up the phone and called Sallie Mae and asked to speak to a supervisor that I had spoken to once before (who had been very helpful). I was told by the woman (and I use that term loosely) that she couldn't transfer me and told me she could help me. I told her what had happened and that I wanted to know what was going on with the account - I was very firm (not rude, not yelling). I was obviously frustrated about the constant harrasing calls, the total lack of information. She was very, very rude - not even trying to be helpful. She then told me that I was talking over her and she hung up on me. Ok, now I'm livid!!! REMEMBER... They called ME and I'm trying to figure out what the problem is.
I finally got in touch with a very helpful customer service rep. Who told me that I shouldn't have been called that everything is up-to-date. He checked all the records and apologized for the call and the rude customer service rep. I asked him to look at the record to tell me who I had last spoken to (the woman who hung up on me) - - no record of anyone talking to me (what a big surprise!).
I've had many, many conversations with their customer service people and they are either poorly trained or just completely incompetent. Their computer systems also an issue - when you get a call for a delinquency and the customer service person cannot tell you what the problem is, or what account is behind - - this is a problem. Also, the information is not correct on their online billing.
I am really fed up with Sallie Mae - NO ONE SHOULD EVERY DO BUSINESS WITH THIS COMPANY!!! I cannot believe that any college or university would subject their students to this company for their student loan financing. There HAS to be a better alternative out there. I am lodging a complaint with the FDIC - I sincerely believe that this company is practicing preditatory lending policies with young students.
THIS INCOMPETENCE AT SALLIE MAE IS AFFECTING OUR CREDIT RATING! Seems like a win/win for the banking industry - they screw up your credit AND get to charge you more interest on any loan you take out in the future - - these companies need to be held accountable!
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