Sallie Mae No Longer Consolidating Student Loans
Imagine my surprise when I call to get some information on my loans and what my payments will be once I finish my program, Sallie tells me they are no longer consolidating loans because the government tightening has made it no longer profitable for them.
From their website:
Private student loan consolidation
Thank you for your interest in Sallie Mae, the nation’s leading provider of saving- and paying-for-college programs. We have temporarily suspended offering our private consolidation loan program. No new private consolidation loan requests will be processed at this time.
Federal student loan consolidation
Sallie Mae’s Federal Consolidation Loan service is not available at this time.
Severe legislative cuts made by Congress made federal loan consolidation uneconomical. This, combined with the credit market deterioration, has caused us to suspend participation in the federal consolidation loan program.
Then the rep tries to put a spin on it by stating that it may not be beneficial for the borrower because we would be locked in with no opportunity to get a lower rate if it comes along. But the rest of us know that this also leaves us open to increasing rates if we do not consolidate.
I am too through with Sallie Mae at this point, I’ve actually liked them even while every one else sang their hatred from the mountain tops.
At this time, I need options, and I need them fast. I will be done in December with the possibility of going back to school in January, however, I need o figure out how to switch lenders so that I can consolidate when the time comes. Shoot me in the comments for this but can I call a customer service center that doesn’t link to somewhere in India?? I want to RIP my hair out every time one of them picks up the phone and its muffled and I can hardly understand them while it sounds like they are reading from a script! I have no issues with THEM being Indian, I have issues with Sallie using this method of customer service which only further infuriates me while I repeat each and every question. My option? Hang up, call back and o through the same dance with another rep.
ARGHH!
Oh and my payment when I graduate? $825. You read that right, $825, but Im not worried, we have a plan to knock out the loans in 2 years so Im cool on that, I just need to consolidate and get a lower rate.
Any recommendations? Advice? Suggestions?
(Photo: abcnews.com )
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R.W | May 26, 2008 | Reply
Restructuring the way you spend money is important, but more importantly is that in order to survive in this world you will need an additional stream of income.
For too long parents have not been preparing and have not been teaching their children how to reduce their debt and at the same time build for their finances. Why? Because they don’t know how. Schools don’t teach this. They only teach you how to work for someone else and if you still don’t earn enough money go out and find a second person to work for.
98% of society is dead broke (living off or credit cards, IRA’s or home equity loans) and when they retire they will have to come out of retirement in order to work for someone else.
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Rich | May 27, 2008 | Reply
The safest bet is to consolidate with the Federal Direct Loan Program. It is most important to wait until after the July 1st rate reset as rates are set to drop to the 3% range. Good luck!
BK (8 comments.) | May 27, 2008 | Reply
Try the federal direct loan program OR if you belong to a credit union consolidate through them
BK’s last blog post..Are you Dehydrated?
J. Lynn | May 28, 2008 | Reply
I’ve never understood why people get degree after degree after degree- and pay for it! There is nothing wrong with advancing your education but it should definitely not cause the amount of debt you will have. Try a public university, or find a job that will offer to pay for it instead.
Ginger (16 comments.) | May 28, 2008 | Reply
Thanks for the tip BK! Ill be doing a follow up post!
Ginger’s last blog post..Sallie Mae No Longer Consolidating Student Loans
That Guy (1 comments.) | May 29, 2008 | Reply
I have a suggestion, Ask for a refund. You do have a receipt right? Ha Joke…
I think we all should invest in school BUT remember one big reason for school is to get a good paying job. The other may be personal. (Self enhancement, parants told them to, Sports etc.)
When people go to school they should have in mind that the school training SHOULD give Them X amount for money salary after graduation to help you pay for school, if that student does not have children or go on shopping sprees etc.
So now you have Student loans, Well Paying them of is possible with just smart money management.
Try the Credit unions etc. Online business or make money work for you and not the other way around.
Talrude
hank (8 comments.) | May 29, 2008 | Reply
I got caught in the mix that I could only consolidate ONCE. So the first they “cold called” me I bit right away, consolidated and didn’t get the “greatest” rate of all time, but I really can’t complain from what it was at…
I can also see their reasoning too - it’s tough to borrow money from the Feds and make ANYTHING off it now… Hard to turn a buck in that industry now…
hank’s last blog post..The Wife And I Are Bumping Up The 401k Contributions to 15% - How Much SHOULD You Be Putting In Your 401k?
lizzy | Sep 23, 2008 | Reply
I completely feel and relate to your frustation about everything!! i graduated in august and dealing with sallie mae is a complete nightmare - you can not get an honest answer about anything because the reps are reading from a script and have a thick accent that is hard to understand. i have been out of school for a month and im unemployed and i owe $150,000 in school private and federal loan debt (scary i know….i cant sleep most nights thinking about it). i paid sallie mae $250 in aug. to put my loans into forebearance until feb. 2009 and i thought everything was cool….at least for the next few months until i find a job and can make payments. well to make a long story short - sallie mae called me and said that i owe them $600 because my forebearance did not go through!? i was told “sallie mae no longer offers the courtesy of allowing you to postpone your payments…you signed a promissary note and are expected to pay” - what!?! i just graduated and im broke! needless to say im extremely stressed out and im trying to find a private lender that will consolidate my loans so that i no longer have to deal with the monster that is sallie mae. if anyone has any helpful info on private loan consolidatin please email me at lizzyg214@gmail.com and let me know. thanks:(