OCCUPY STUDENT DEBT

Student debtor stories submitted by the 99%

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2 posts tagged fraud

Interviews with 22 consumer-finance attorneys, plaintiffs in lawsuits against Sallie Mae, consumer advocates, and higher-education expertsshow that Sallie Mae engages routinely in questionable business practices. Borrowers are charged excessive and undisclosed late fees. Aggressive collection tactics are employed against borrowers who have been unable to resolve billing disputes with Sallie Mae — which is, by industry standards, unresponsive to questions and complaints. And the company prevents many of its borrowers from consolidating loans with anyone else but Sallie Mae — which doesn’t always offer the lowest interest rates. -Catherine Tumber, The Boston Phoenix

Interviews with 22 consumer-finance attorneys, plaintiffs in lawsuits against Sallie Mae, consumer advocates, and higher-education expertsshow that Sallie Mae engages routinely in questionable business practices. Borrowers are charged excessive and undisclosed late fees. Aggressive collection tactics are employed against borrowers who have been unable to resolve billing disputes with Sallie Mae — which is, by industry standards, unresponsive to questions and complaints. And the company prevents many of its borrowers from consolidating loans with anyone else but Sallie Mae — which doesn’t always offer the lowest interest rates.

-Catherine Tumber, The Boston Phoenix

Source bostonphoenix.com

A recent submission: The US Department of Education is now doing what would be considered to be fraud if any other business was caught doing this to clients. People currently in default and in the rehabilitation process are being screwed right now because of the DOE incompetence of getting the computer system upgraded. Many that have paid their 9 month fulfillment are having to continue to pay until DOE fixes their problem. I finished my 9 months, received no notice, no letter stating that I had to keep paying because they were not letting anyone out of default. Then wouldn’t you know it, I received a statement three months later stating I owed money to them, I called and was told that I have to now start the 9 months ordeal all over again because I didn’t make payments beyond what the agreement was. Talk about a raw deal. And this is going on to thousands right now.

A recent submission:

The US Department of Education is now doing what would be considered to be fraud if any other business was caught doing this to clients. People currently in default and in the rehabilitation process are being screwed right now because of the DOE incompetence of getting the computer system upgraded. Many that have paid their 9 month fulfillment are having to continue to pay until DOE fixes their problem. I finished my 9 months, received no notice, no letter stating that I had to keep paying because they were not letting anyone out of default. Then wouldn’t you know it, I received a statement three months later stating I owed money to them, I called and was told that I have to now start the 9 months ordeal all over again because I didn’t make payments beyond what the agreement was. Talk about a raw deal. And this is going on to thousands right now.