January 15th 2012
Sallie Maehem: Practically Everything Wrong with the (Predatory) Private Student Loan Industry
Please Sign the Change.org Petition! www.change.org Tell Sallie Mae: Stop the Unemployment Penalty I’m Stef, a recent graduate of a public college who took out private student loans through Sallie Mae before the credit crunch. Despite my school’s relatively low tuition and my full-time job, I still needed the extra help in order to pay for my rent, utilities, and groceries because my parents had passed away. Sallie Mae loaned me money with a 9.75 percent interest rate because I didn’t have anyone who could co-sign. I graduated in May with honors, but even with an advanced degree in a technical field, I still haven’t found full-time work. I’m doing everything I can to avoid defaulting on my loans, but Sallie Mae has charged me hundreds of dollars in extra fees because I’ve had to delay my payments (called forbearance). Federal loans allow the unemployed to defer payments without any fees, so the same kindness is not too much to ask from America’s largest private lender. Since May, I’ve already had to pay 0 to Sallie Mae in “forbearance fees.” ( per loan for every 3 month block. Consolidation is not an option.) Not a dime has gone into my loan principal. Meanwhile, the interest on my loans keeps growing — meaning that Sallie Mae will cash in two times — once with the extra fees they’re charging me, and again when I pay the interest that accrues as I look for work. As an unemployed person looking for work, I need every extra dollar I have to pay for rent, electricity …
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