topic Re: Sallie Mae - CA in Student Loans

Sallie Mae - CA

niecey89 — Thu, 18 Dec 2008 20:50:54 GMT

Good Afternoon,

Hopefully I can get some answers for this problem. I have 4 loans with Sallie Mae. As of date I have paid off one of my Sallie Mae loans (the one with the co-signer), 2 are on unemployment deferment, and the last is in repayment (career training loan). The last one in repayment has been in collections (ARM) but I paid the past due amount and is currently making payments to Sallie Mae directly. As of date everything is current and not past due.

Is there a way I can get the agency to stop the collection calls?

I stop answering the phone because they call me about 5-6 times a day. Continues to call the same day even after I talk to a rep. Also they never sent me anything in writing stating that i need to make payments to them instead of Sallie Mae.

Re: Sallie Mae - CA

SCF — Fri, 19 Dec 2008 05:29:02 GMT

I can't offer a lot of advice, but I know that if you pop over to the Rebuilding Your Credit forum, you should be able to find some templates for a letter to send to CAs telling them to stop all calls to you at home and at work and only communicate with you in writing. Once you've notified debt collectors to not call like this, they have to comply or face a fine.

In terms of if they should be calling you in the first place, I don't know if they would still have the debt after you've gotten current on it and are making payments to the original creditor. Hopefully someone else can chime in, but another tool that might help you is a debt validation letter, there should be some examples of those over in the Rebuilding forum too.

Good luck!

Re: Sallie Mae - CA

niecey89 — Fri, 19 Dec 2008 09:19:55 GMT

I do appreciate your advice but Sallie Mae is a different ball game. I have been rebuilding my credit for the past year now it is just SallieMae that is my major issue now. I was really looking for advice of those with student loan experience and what would be my best plan of attack. Thanks again

Re: Sallie Mae - CA

Anonymous — Fri, 19 Dec 2008 13:32:06 GMT

Unfortunately, I think I remember your loans as being private ... are they?

Do I understand that the people calling you are with a collection agency? Or the SM in-house collection agency?

I realize that you've probably mentioned all this before, but I really can't remember!! Please holler back!

Re: Sallie Mae - CA

LynnInMN — Fri, 19 Dec 2008 13:58:55 GMT

OP said it was a career training loan so it is private. And since a CA is handling it, it will be in default. The CA is under contract with SM so any payments being sent directly to SM are being forwarded to the CA.

Did you ever set up a payment plan with the CA?? Do they have your correct mailing address? Ceasing a CA on a private loan in deault could result in you being sued.

Re: Sallie Mae - CA

Anonymous — Fri, 19 Dec 2008 14:05:37 GMT

@LynnInMN wrote:
OP said it was a career training loan so it is private. And since a CA is handling it, it will be in default. The CA is under contract with SM so any payments being sent directly to SM are being forwarded to the CA.

Did you ever set up a payment plan with the CA?? Do they have your correct mailing address? Ceasing a CA on a private loan in deault could result in you being sued.

So what's happening? Is the CA calling her because of the time gap between when SM gets the payment and they forward it to the CA?

(ETA: Cause we had this happen to us once with a vendor. Company A hired Company B to process payments -- this wasn't a collections account, BTW -- we paid Company B and in the time gap for Company B to "forward" the payments to Company A, Company A would call us asking when we were going to make a payment)

Or are they calling so often to pressure her into paying it outright?

While I don't begrudge them doing their best to get paid, calling someone 5-6 times a day is excessive and harassing!!

Message Edited by Wonderin on 12-19-2008 08:05 AM

Re: Sallie Mae - CA

LynnInMN — Fri, 19 Dec 2008 14:31:25 GMT

With private loans, Sallie Mae internal collections will handle predefault. They will not send them out to a CA until they default....and once they default they become due in full. If the OP has not set up a payment arrangement to resolve the default with the CA, they will continue to call. The pay directs from SM are forwarded periodically...hard to say how often. And it is hard to say why they are calling back since the OP is ignoring the calls.

Re: Sallie Mae - CA

niecey89 — Fri, 19 Dec 2008 16:59:36 GMT

The loan is with a collection agency not Sallie Mae internal. They (CA) never sent me paperwork for any payment plan. So I have been making my payments online with Sallie Mae (at least small payments a week). By the due date I have already overpaid what is due.

Re: Sallie Mae - CA

niecey89 — Fri, 19 Dec 2008 18:10:41 GMT

@LynnInMN wrote:
OP said it was a career training loan so it is private. And since a CA is handling it, it will be in default. The CA is under contract with SM so any payments being sent directly to SM are being forwarded to the CA.

Did you ever set up a payment plan with the CA?? Do they have your correct mailing address? Ceasing a CA on a private loan in deault could result in you being sued.

To answer your questions:

1. no payment plan

2. I still get my Sallie Mae statements to my PO Box, so I would say yes they have my mailing address

3. Sue, wow, well with me being out of work and have a child to support on unemployment until I can find a new job (not looking good right now)

4. unless they take my daughters child support money or garnish my unemployment i will not have anything. Also i would be homeless if they garnish my unemployment.

Message Edited by niecey89 on 12-19-2008 01:10 PM

Re: Sallie Mae - CA

LynnInMN — Fri, 19 Dec 2008 17:54:12 GMT

There is no paperworking for a payment plan. When you default, your balance is accelerated and is due in full per your prom note. All payment plans are temporary and are done verbally as to to not violate the prom note.

Re: Sallie Mae - CA

niecey89 — Fri, 19 Dec 2008 18:17:34 GMT

@LynnInMN wrote:
There is no paperworking for a payment plan. When you default, your balance is accelerated and is due in full per your prom note. All payment plans are temporary and are done verbally as to to not violate the prom note.

Well for now I am paying what is on the Sallie Mae site. From past experience with collection agencies, you must have everything in writing for verification if it ever goes to court. Had a judgement before I know that part of the process they did not have it in writing and the judge throw out the inflated cost. Only had to pay what I owed. It maybe different by state and of course up to the judge to decide.

Re: Sallie Mae - CA

niecey89 — Fri, 19 Dec 2008 18:18:18 GMT

Thanks everyone for your advice. It was very helpful and knowing what I need to do.

Re: Sallie Mae - CA

LynnInMN — Fri, 19 Dec 2008 19:24:02 GMT

Forget what you think you know about CA's when dealing with student loans....they are completely different from other consumer rules of thumb. Plus you signed a prom note...everything is written out in black and white. Nothing will be put in writing that changes what is in that agreement.

You will be sued....plain and simple. This is how private studen loans operate. Since they cannot do admin wage garnishment like federal loans, they will sue for judgment and garnish thru the courts. So if you want to avoid this in the near future, I would suggest you call the CA and get set up on a payment plan.

Re: Sallie Mae - CA

niecey89 — Fri, 19 Dec 2008 20:39:12 GMT

If they are getting the money from point A which is Sallie Mae then they can not say they are not getting paid. Then that will be a major fight because everyone is getting paid regardless. Also before they can sue anyone it would have to go to a law firm for payment collections. I know this because i have a friend that works for a law firm that collects money for all types of debt. Since i have not received a letter from a law firm as of date then I will continue to make my payments to Sallie Mae directly has I have been doing. As of date as stated earlier I am current and up to date with my payments. I understand Lynn you did this for a living but in order to sue someone it would have to go to a law firm first. They can not sue if they are getting paid. Again thanks for your advice.

Re: Sallie Mae - CA

niecey89 — Fri, 19 Dec 2008 21:02:02 GMT

also i can not see being sued if i am making payments to the original debtor for more then what was originally agreed upon. If that was the case then they should not be taking my payments and refer me to the CA. Which i have not received a letter from Sallie Mae or the CA.

Message Edited by niecey89 on 12-19-2008 04:02 PM

Re: Sallie Mae - CA

Anonymous — Fri, 19 Dec 2008 21:08:29 GMT

@niecey89 wrote:
If they are getting the money from point A which is Sallie Mae then they can not say they are not getting paid. Then that will be a major fight because everyone is getting paid regardless. Also before they can sue anyone it would have to go to a law firm for payment collections. I know this because i have a friend that works for a law firm that collects money for all types of debt. Since i have not received a letter from a law firm as of date then I will continue to make my payments to Sallie Mae directly has I have been doing. As of date as stated earlier I am current and up to date with my payments. I understand Lynn you did this for a living but in order to sue someone it would have to go to a law firm first. They can not sue if they are getting paid. Again thanks for your advice.

Actually, unfortunately, that's not true, really.

In the contract/promissory note, it spells out their legal remedies -- especially if you've defaulted (and this is true for Fed loans, too). Once a default occurs, they have the right to demand payment in full, no ifs, ands or buts about it.

Even if you make enough payments that you're no longer "behind" (meaning, you WERE $2000 behind, but have paid $4000), they still retain that right. That's contract law. In fact, that wording is in our Federal loan consolidation contract, too, so you're not alone.

Re: Sallie Mae - CA

niecey89 — Fri, 19 Dec 2008 22:13:47 GMT

@Anonymous wrote:
@niecey89 wrote:
If they are getting the money from point A which is Sallie Mae then they can not say they are not getting paid. Then that will be a major fight because everyone is getting paid regardless. Also before they can sue anyone it would have to go to a law firm for payment collections. I know this because i have a friend that works for a law firm that collects money for all types of debt. Since i have not received a letter from a law firm as of date then I will continue to make my payments to Sallie Mae directly has I have been doing. As of date as stated earlier I am current and up to date with my payments. I understand Lynn you did this for a living but in order to sue someone it would have to go to a law firm first. They can not sue if they are getting paid. Again thanks for your advice.

Actually, unfortunately, that's not true, really.

In the contract/promissory note, it spells out their legal remedies -- especially if you've defaulted (and this is true for Fed loans, too). Once a default occurs, they have the right to demand payment in full, no ifs, ands or buts about it.

Even if you make enough payments that you're no longer "behind" (meaning, you WERE $2000 behind, but have paid $4000), they still retain that right. That's contract law. In fact, that wording is in our Federal loan consolidation contract, too, so you're not alone.

"bleeped" if you do "bleeped" if you don't. But to this day I have not received any letter demanding full payment. No letter from the CA. They should be happy that paid off the arrears and ahead on current payments with me being unemployed and still looking for work just like a million other people.

Re: Sallie Mae - CA

LynnInMN — Fri, 19 Dec 2008 22:13:49 GMT

@niecey89 wrote:
also i can not see being sued if i am making payments to the original debtor for more then what was originally agreed upon. If that was the case then they should not be taking my payments and refer me to the CA. Which i have not received a letter from Sallie Mae or the CA.

Message Edited by niecey89 on 12-19-2008 04:02 PM

Then you need to read the boards a bit more....people are regularly sued as a course of business by private lenders after making payments for years. It is standard practice for defaults. It really doesnt matter anymore how much you are paying.......you defaulted on your contract.

You really think a judge is going to buy the excuse "well the CA was calling but I ignored them so I just made my regular payments."

Re: Sallie Mae - CA

niecey89 — Fri, 19 Dec 2008 22:24:24 GMT

well then i will have to deal with it at that time. 5-6 times a day is harassing that is why i do not answer. at one point is was 12-13 times a day. I have read the boards, thanks. i just want to get a different view on my situation. right now all they can do is take me to court and take my unemployment because right now my money (the little i have to get by until i find a job) is in my daughters account and since she is a minor it can not be touched.

Re: Sallie Mae - CA

Anonymous — Fri, 19 Dec 2008 22:37:18 GMT

@LynnInMN wrote:
Then you need to read the boards a bit more....people are regularly sued as a course of business by private lenders after making payments for years. It is standard practice for defaults. It really doesnt matter anymore how much you are paying.......you defaulted on your contract.

You really think a judge is going to buy the excuse "well the CA was calling but I ignored them so I just made my regular payments."

As always, YMMV.

Many, many, many judges are completely satisfied with a demonstration of a willingness and committment to make payments, regardless of the stipulations in a contract as re default.

Also, judges are human (at least, most of them, LOL) and understand that especially in this economy, it's not always easy to pay debts -- again, they often recognize valid attempts to pay those debts ESPECIALLY when the debtor in question is under financial duress.

And IMHO, Niecey sounds like, despite her financial misfortune, she's doing her best to make good on her debt.

Not trying to argue, since you obviously know the financial aid end of things, but I do know quite a bit about the legal aspects (not a lawyer, but have several college courses in law under my belt). Too, kinda comes with the territory when your best friends are lawyers and judges (its a small, small town!).

Just my two cents.