Results 1 to 7 of 7

Hybrid View

  1. #1
    Join Date
    Jan 2010
    Posts
    2

    Default Sallie Mae Defaulted Loan with No Notice

    My question involves collection proceedings in the State of: Michigan

    My daughter started college in 2003 and has since changed her major and is still a full time student. In the last week Sallie Mae has sent her notices that student loans taken out in 2005 and 2007 are now default and is requiring payment in full by the end of this month (14,000.00). The first notice was sent via email on Dec. 25th, 2009 and she did not read her email that week (big mistake!). We received the notices in the mail on Dec. 31st. Here is the situation.. these loans we believed we in deferrment until her graduation this year. These are private student loans and we have received no notices (not one until Dec. 25) that these were delinquent, much less nearing a default status (1 week) and now are in collections. According to Sallie Mae's own record of correspondence, there was only the 7th delinquency notice, never a mention beforehand that the payments were past due. We never received notice 1-6 and there is no record of them being sent. They are now demanding payment in full within this month or her wages will be garnished. The collection agency is willing to settle but we do not even have the settlement amount they are asking for (6,000.00) and are claiming that there is no deferrment for "private student loans". Even her credit report states that repayment is scheduled to begin in July 2010 and February 2011. We really received no notice that this was even happening! I co-signed one of the loans and my sister in law another, as well as her father. The collection agency is demaning 4700.00 (that we do not have) just to set up payment arrangements. Also, meanwhile, Sallie Mae has continued to give her new loans as well and now we are wondering about the status of those! I know the laws are different for student loans but we don't even know where to start! Can anybody help???????

  2. #2
    Join Date
    Jan 2010
    Location
    Houston, Texas
    Posts
    17

    Default Re: Sallie Mae Defaulted Loan with No Notice

    that make me nervouse cause I am a student and I have about 20,00 in student loans but I think the most they will try to do if you don't work out a deal not with the collection agency go to Sallie Mae, is take your income tax or start garnishing wages from your payroll, you need to jump on that quick, send in a payment even if its $ 200 to $500 dollars.

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Sallie Mae Defaulted Loan with No Notice

    That would accomplish almost nothing. They're not going to reinstate the loans over a $200 or $500 payment. You would run the risk that the $6,000 payoff figure would not be reduced to reflect the payment made.

    If the collection agency is willing to settle the loans for $6,000, closing the books on the matter, my inclination would be to find a way to come up with the money. You're the cosigner, so if they're inclined to sue you'll be named as a defendant as well - and all of this is presumably going onto your credit report along with hers.

    If you have a "Come to Jesus" talk with your daughter, you may learn that she received the prior six notices but chose not to tell you about them.

    Your daughter can check the status of her Sallie Mae loans online.

  4. #4
    Join Date
    Jan 2010
    Posts
    2

    Default Re: Sallie Mae Defaulted Loan with No Notice

    Yes, while I appreciate all feedback, I had no intention of following the previous advice. (Sorry Britt, but he is right. That would accomplish nothing.)

    Actually nothing has been reported to anyone's credit yet, including hers. I work for the Credit Union that she financed her car through, I saw her credit report in Sept. and we actually ordered it again yesterday...nothing. Which I find very hard to believe if she was 399 days past due, not to mention that these loans were taken out years ago so if she was supposed to begin repayment immediately, how is she "only" 399 days past due? None of it makes any sense and had I found that she was simply being irresponsible (and she most certainly can be), well, life lesson learned here but that is not what I am finding. And I already did have the "Come to Jesus" talk and actually no she did not receive that and I know that because I get the mail. She lives in my house, mail comes to my house, I respect her privacy in personal matters but what it is, is what it is. I have no problem opening her mail. Sallie Mae's own record of correspondance do not include the other "six notices". However, as you know, we are not dealing with Sallie Mae any longer.

    All of this aside, I assume that none of it matters? So you are saying that we should find a way to come up with the 6,000.00? I suppose it may be a possibility if they allow us even a little bit of time to come up with it. I will be on the phone as well as my daughter today to find that it but it just seems so wrong.

    Thanks for your input, I do appreciate it.

  5. #5
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Sallie Mae Defaulted Loan with No Notice

    I'm saying that paying back $6,000 is a lot easier (and cheaper) than paying back $14,000. I would try to negotiate to keep that off of your (the cosigner's) credit report; even if it's not yet on hers, I expect that they will report the settlement of a $14K debt for $6K. Whatever agreement you reach, get it in writing before you send any money. Don't trust any promise that's only made over the phone, because there's a good chance that they later "won't remember it that way" or you'll be passed along to a different person who will simply disregard any prior non-written promises or agreements.

  6. #6
    Join Date
    Jan 2010
    Posts
    2

    Default Re: Sallie Mae Defaulted Loan with No Notice

    I would agree, in a situation where there seems no eas way to resolve the issue arranging the smaller level of payment, although no ideal seems like a better option.

    1. Sponsored Links
       

Similar Threads

  1. Student Loans: Defaulted with a Personal Student Loan from Sallie Mae
    By anonymoustmn in forum Debts and Collections
    Replies: 1
    Last Post: 08-27-2011, 11:25 AM
  2. Student Loans: Defaulted Student Loan Federal (Went Defaulted 1990)
    By defaulted in forum Debts and Collections
    Replies: 1
    Last Post: 01-18-2009, 09:31 AM
  3. Cosigners: Cosigner of Delinquent Sallie Mae Loan
    By cosignerblues in forum Debts and Collections
    Replies: 2
    Last Post: 08-20-2008, 07:25 AM
  4. Student Loans: Sallie Mae Loan is Going to Default
    By JerryJ in forum Debts and Collections
    Replies: 1
    Last Post: 07-02-2008, 05:16 AM
  5. Student Loans: Sallie Mae Loan In NJ
    By MikeFF206 in forum Debts and Collections
    Replies: 1
    Last Post: 10-24-2006, 08:15 AM
 
 
Sponsored Links

Legal Help, Information and Resources