Posted on 01 October 2012.
I’m 62 and borrowed $12,700 at age 40 to go to a state school and get a B.S. I worked while in school, got job at UMass after graduation, started paying off loans. While working got an M.S. and took in school deferments, got a better job at UMass, made payments, figured I paid between $5-7K on the loan when job funding began to tank. Sporadic work since then; no work or low pay since. Got financial hardship forbearance from Sallie Mae and all the while interest was being capitalized even though I blacked out that part of forbearance form. So now I owe about $28,000–from interest on top of 9% interest on top of interest ad infinitum; maybe $7,000 goes to $28,000 which I will never be able to pay back. Sallie Mae will not send a breakdown of my account or deviate from scripted demand for payment. For 2 years I’ve earned $8 per hour, 20 hours a week, now up to $9.50 an hour. It is pointless to even make small payments because I’ll still be in default and I can’t afford it anyway. NO way out. Boy, do I regret going back to school. I just started collecting Social Security–will Sallie Mae go after that or try to garnish my $237.50 a week pay?
I believe lenders love it when people begin to fall behind or can’t pay because they can just continue to pile on interest knowing the borrower can’t pay it, and they will basically have the borrower in debt for years and years. What a system! No, it’s not financial aid; it’s a dangerous loan/gamble that can be very very costly and destructive.
Posted in Debt Stories
Posted on 23 September 2012.
My original loan balance for my Bachelors of Science program in Computer Information Systems was approximately $42,000.00.
As a result of outsourcing I was laid off as a Software Development Project Manager making a six-figure income. I spent the next three years or so seeking employment in the field I passionately pursued to no avail. Ironically the CEO of the corporation I worked for received a nice 7 digit bonus while Americans were displaced from the work force.
As I fell further and further behind in repayment of the student loans to Sallie Mae, Sallie Mae called incessantly in the morning, afternoon, and evening and then proceeded to call my references to further embarrass me. They then offered forbearance after forbearance after forbearance. Never explaining that interest would continue to accrue on the account.
For some reason I am not eligible to take advantage of current extremely low Federal interest rates of approximately 4.0% but I am forced to adhere to 8.0% rate.
As I stated earlier, the original loan in it’s entirety was approximately $42,000.00. The capitalized interest amount is approximately $78,000.00 for a totally repayment of approximately $120,000.00. By the time the loan is totally paid off I will have paid in excess of $250,000.00 to borrow $42,000.00.
I would also like to address the fact that while Sallie Mae Corporation continues to pillage the American people with their deceptive practices, each and every time I call Customer Service for the organization I am forced to deal with a representative from the “Asian Pacific” who will never clearly identify where they are in the world nor can they be understood. Seems like and interesting formula to me. Fix the interest rate of the Student Loans to a hard 8% and outsource the Customer Service department to a place in the world that is not identified, therefore taking jobs away from Americans and increasing the bottom line for CEO’s to enjoy seven digit income and bonus packages.
I am fearful that this debt will go into default.
Posted in Debt Stories
Posted on 10 August 2012.
All I wanted was to do what I was taught was right when I graduated high school: to get a college degree and make my parents proud.
My passions fall into art. I searched and searched and found the perfect art college I could join, right by my parents’ house. This way I could still live with them while I finished my schooling.
Little did I know that “The Art Institutes” are for-profit private schools that have been building a reputation as loan farmers. What they do is use scam business practices and fake numbers and statistics like “85% of our graduates have a full time job the first 6 months out of school.” These statistics were what got me to join.
They then force you to get federal student loans and go through their recommended private bank partners, like Sallie Mae, to loan your money to you.
I’ve seen 7/10 of first year students get tricked into joining the audio productions degree program there because they were led to believe that it was something that it was not. They also brush the tuition of $90,000 under the table while they register you and make sure you are confident and trusting when you join.
I realized their scam too late. After two years in the program, I realized there was no real guaranteed jobs for my degree–that this degree was just made up out of no where, and that I could have went into this field and been successful without even going to college! I also witnessed the school screw over my classmates first-hand and put them $15-20,000 in debt for a year only to realize they were lied to from the beginning about what the school was really about. I am already a senior in the school so it is too late to pull out now. I’m going to finish the degree and hope I will find a job that will be good enough to pay the 600 monthly payments on student loans I will have to pay as soon as I graduate. But I know already that this is unlikely. I understand this field now, and now I will have to be very lucky to ever make enough money to pay this off easily.
With Sallie Mae’s ridiculous, selfish interest rates, I will pay $120,000+ for a stupid art degree that doesn’t mean anything.
These for-profit private schools the Art Institutes are loan farmers, are selfish. They don’t care about art or music. They care about manipulation and money, and I was a sucker. Now will have to struggle the rest of my life with no guaranteed job at all to pay this mistake off.
Thank you America.
– Anonymous –
Posted in Debt Stories