Fed Financial
Is there any help for people with Private student loans?
I have private loans with Sallie Mae, when I took the loans out, I was told my payments would only be $220 a month, okay great I can pay that. They started at $350, and have risen to over $500 per month. I have tried to consolidate, and now due to my bad credit because of these outrageous loan payments I need a cosigner, well I had one, my sister, but then she called and spoke to Sallie Mae and found out that when they told me that my rate would be locked in at 7%, in comparison to my 13% for two, and 17% for one other, it would not be locked in, it could change, she doesn't want to take the chance that I will not be able to afford the payment if it goes back up again. What can I do? How is it legal for a school financial aid department to tell you your payments will only be $220, and then you are just stuck with payments you cannot afford, and everything Sallie Mae tells you to do and that you "can't" be denied, you pay extra money just to get a letter saying "You are not eigible"
Public Comments
- Holy cow, that's a steep student loan payment. I don't know how they can raise rates on private student loans, especially Sallie Mae. Look into debt consolidation, and maybe that will be a lower rate than the loans. Curious: how much was the total you borrowed to have payments that high, and what it the time frame for paying them back?
- Do you know someone studying Law ? It may be usefull. In some ways, a borrower can't ask you to pay more than what you can afford, since you're clean and never late on your payments. You need some power in your battle against Sallie Mae. If you could find a considerable amount, to show them you're serious. Why don't you ask your sister a credit card with 6-months free or interests. you take the money on the card to pay a few thousands to Sallie Mae, that should give you the power to negociate better terms. Before doing anything, try to find a competent resource who will help you regarding your rights. Good luck !
