Sallie Mae Class Action Lawsuit

My brother is going through the same thing.

What type of situation is your brother going through?  This thread has many different  situations through out it.

He took out a Loan for Medical School and didnot finish because he miss the test by 2 pts. He is now employed by Fedex. The loans went into repay about a couple of months and the loan double. They refuse to do an income contigency payment pay with him. I try call to see if I can start repaying the 22,000 I consigner and they basic said by the time I finish I would have paid Sallie mae 76,000. When I calculate the 22,000 with interest for 10 they gain about 8,000 interest which seems alot screwy to me. I call them and told them send every in writing and they said no and hung up the phone.

Hello, I am so glad that I found someone else that has the same problem. I have a parent that took out a sallie Mae loan while I was in college. I did not sign as a consigner on the loan nor did I receive any money from it. However, since i was the student, it is on my credit report as a joint account and has affected my credit score. Were you able to find a class action lawsuit related to this issue?

Hello. Thank you for your time. This is regarding an on-going disability application issue with Sallie Mae. Back in the year 2005, I began have physical issues with my right arm as a waitress. I enrolled in Cornish College of the Arts and was accepted to begin that year. My plan was to work through college as a waitress. I didn't know I would have to quit my job in September 2005 because of physical limitations and my Dr. didn't know what was happening. So my Dad stepped in allowing me to live with him without the stress of making rent. I thought I could get through college living with my Dad and collecting unemployment. In 2006, my physical therapy office suggested I open an Labor and Industries claim and get help for what was going on because it was seriously getting worse-hence occupational disease. Over the duration of the years, my right thoracic area began to get worse and worse and wasn't diagnosed until 2008 as an Occupational Disease called Thoracic Outlet Syndrome. Before the diagnosis, I had to leave Cornish College of the Arts in 2007 because there was talk about surgery and possible recovery. I contacted Sallie Mae (I borrowed from them for two years 2005-2006 to help cover the part of tuition I couldn't afford) to talk about disability options (I wasn't considered permanently disabled yet but there was talk amongst my doctors) and if they would freeze the interest. They said no and of course it left me in tears. I borrowed $10,000 from them for college years 2005 & 2006. Now because of interest I now owe around $17,000. I had my doctor submit an application to Sallie Mae. He did his best to exact dates but he was off on a couple so I sent Sallie Mae the correct proof with the dates. I filed a complaint last year with CFPB which caught their attention and Minnesota Life picked up my file to look at (Sallie Mae's insurance company) and collect any further information regarding my years of treatment. I got a letter today from an unqualified customer advocate (not from Minnesota Life) telling me that they consider me disabled as of 2005 even though I wasn't diagnosed and hadn't had surgery until 2008. I have what is called an Occupational Disease and in no way did I anticipate it getting worse. I don't have work right now and I live off of my husband's church wages which is still considered in the poverty level. The U.S. Department of Education has discharged all of my student loans because of the disability application without a struggle. I am considering seeking legal help and am wondering who to turn to. Sallie Mae won't adjust payments (I tried that too and they said no), discharge my loan based on facts regarding disability nor will work with me on anything else to rectify the debt. I keep hitting a brick wall with them and my doctor did everything he could do. I am basically pleading for help because I don't know who else to turn to before I seek legal help. I am hoping you can mediate this and help me find a solution without my credit going bad because of Sallie Mae. I believe they have been dragging their feet with my application and haven't fully read or thought this through. I could be wrong but I haven't been treated with respect from Sallie Mae no matter how kind I can be or even if I put my foot down.

This is a statement I recently submitted to CFPB so please do not think I am asking you for legal counsel if you are not an advisor.  I thought it important to know some of the details and struggles with Sallie Mae. I've only touched on the icing. I have had a long arduous struggle with them for years now trying to work something out. 

I just have a quick question. I applied for loans through Sallie Mae in 2006 and was approved for 2 student loans.  One was for $2,000.00 and the other was for $1313.00, now with the interest and all I owe over $4300.00 . I never took the classes and decided to withdraw. I am now getting letters from Sallie Mae stating they are going to either take my Federal Income Taxes or garnish my wages. So I logged into my Sallie Mae account and was looking at my loan details and the loan details said that the loan disbursement date was 08/08/2006 for both loans and my last day I was registered for class was 08/04/2006, So Friday I decided to call University Of Phoenix( the school I planned on attending). They have no record of me ever being a student there. Now it is Monday and I call Sallie Mae back, They are still saying I owe this money, and I argued with them for over a hour on the phone, the lady I was talking to said they contacted the school and verified that I was never a student there or never attended., So I asked her to shut down my Sallie Mae account and take this negative account of my credit report. She told me she could not do that and all she could advise me to do was keep paying on these loans.  So my question to you is where do I go from here?

Clawson:

So my question to you is where do I go from here?

Back to the school to the Financial Aid Office.  The Registrar's Office likely has no record of you because you withdrew from classes.  Financial Aid may be a whole different story.  Did the school receive the money from SM?  If so, did you withdraw before the required date in order to receive a full refund?  Many students incorrectly believe that all they have to do is withdraw and all the tuition is waived.  That is true to a specific date set by each institution.  If you did not withdraw by the specified date you owe the tuition even if you never attended one class.

If any of the money was refunded to you because you borrowed more than the tuition then that too must still be repaid. 

However, check what you signed with the school.  This "school" is notorious for billing fraud and requiring payment regardless of classes attended.  If you agreed you would pay for the first semester even if you didn't attend then you are out of luck and owe the money.  However, if there is no such agreement or contract and the school was paid when you properly withdrew then they need to straighten this out with SM and return the money.

ClydesMom:

This "school" is notorious for billing fraud and requiring payment regardless of classes attended. 

I'd be careful about statements accusing the school of fraud. That may be defamatory, and even if you could prove the statement was true, you could find yourself having to defend a costly lawsuit.

MisaMouse9.

Looks like you have a private student loan or loans. Otherwise, it /they would have been discharged with your Federally insured ones.

Unfortunately, private students loans are not eligible for discharge because of disability. What happened with your Federally insured loans is that the Government paid off the lender(s) as it, in effect, insured those loans in the event the borrower qualified as being disabled and unable to pay them back for that reason.

There is no comparable Government insurance on private student loans.