Fed Financial
Sallie Mae refund interception?
Is Sallie Mae student loan considered federal or private? Can they intercept my tax refund if I still owe money from them? Please dont respond if you're just gonna say that im a "deadbeat" and "just pay the damn loan". here's why" http://www.cnn.com/2004/TECH/ptech/02/23/schools.gobust.ap/ .
Public Comments
- Happened to me. According to the article, Sallie Mae is private. Loonin and others say it should not be so easy for such trade schools to obtain loans for students. The loans, mainly obtained through Sallie Mae Financial and Key Bank, are not federally backed. And that makes it far more difficult for students to get them forgiven when a school suddenly closes. "Federally backed" still means you have to pay. I was defrauded and the U.S. Department only tells lies and excuses. They won't let me out of the loan! Their reps hound and harass you. I've sent them hundreds of emails and many letters without adequate response. Their numbers are only to pay. No reps come on. I went to the Elizabeth Brant School of Business. You can't get a computer job or an accounting job with only one year of "education". But that's what the school was. They couldn't find a worthy computer instructor; if you know computers you're not going to teach. I've written Virginia Senator Emmitt Hanger, who owned the school. The school shut down one year after I graduated for some illegal activity. No response from Hanger and he's still a Virginia senator. I still have to pay on the loan even though it has been over 20 years since I got the loan. So, you are right and I can sadly relate. There should be NO U.S. dept of anti-education and there should be no Sallie mae.
- If your loan is backed with government guarantee funds then the loan is subject to capture if it goes into default. There are several types of student loans. Many are made by private banks but are guaranteed with taxpayer funds. Those can be captured. Some are direct loans and of course those are subject to capture. Loans made by private lenders and not backed by taxpayer funds are not subject to capture. The issue of capture is separate from the issues raised in the linked article. In fact, direct loans and government guaranteed loans (which ARE subject to capture) are MUCH easier to have forgiven than the private loans discussed in the article when a school closes without warning.
- Sallie Mae are private and federal loans...in the future it will be mostly private...they can only intercept your taxes if you are in default with your loan...if you are just delinquent than you are fine...if you are in default you can call the lender and see if you have been tax offset certified...if they say yes your taxes will be interecpted...if they say no...then you have another year~
