Hey friends. I could use some guidance. (Sallie Mae threatening emails)
Posted by IsshaBuoy@reddit | studentloandefaulters | View on Reddit | 13 comments
Hey everyone. This is my first post in this subreddit, and I think it's about time I asked for some help.
I currently have three loans with Sallie Mae totaling a little over 45k. Over the past three or so years, my payments have creeped up from ~$400/mo to nearly $900. I'm drowning, this is more than my rent. There's no possible way anyone in my position could survive like this, let alone live. God forbid I have a pleasant life with a modest savings. My fiancé and I want to plan our wedding for God's sake, but after over a year of being engaged, we've barely been able to make any moves due to simply staying afloat.
I'm sure I don't have to convince you all that this kind of situation is evil and predatory for the sake of some suits getting fat stacks on the back of our lives and labor, but I digress.
Some Info on my situation: Like I said, my three loans add up to ~45k. Each of the three have co-signors. - One is/was my grandfather, who has since passed away - Another is my step-father, who can no longer work due to heavy mental disorder and currently lives off of our country's pitiful excuse for benefits. - The last is my grandfather on the other side of my family. Retired, and gets paranoid and argues with my mother when anything regarding the loan crosses his doorstep.
The past few months I've prioritized rent and food rather than the SM payments. This has left me making incomplete payments to two of my loans and full payments to the loan my living grandfather is cosigned on. I've been getting the daily calls from Sallie Mae corporate office and emails every other day about contacting them for them to help.
I don't know if anyone here has had the pleasure of dealing with these guys. Years ago when I had gotten behind on payments the first time, I tried talking to the about how this was unsustainable, and they told me first and foremost that they couldn't do anything to help unless the loans were current, meaning that there was nothing due at the time or in the next month. I asked for them to consolidate, which is such a fucking simple thing for a LOAN SERVICER to do, but their response was "That is not a service we provide". Such bullshit. I've tried to apply for other services to refinance and consolidate, but I've always gotten denied. Because I don't make enough money. If I made enough money, I wouldn't be in this mess!
I struggled to pull things together with my measly job and begged other members of family for help and I would get them current, only for SM's "help" to be me having to give them my entire financial history and expenditures vs. assets, salary, etc. along with each of my cosigners. One of my cosigners refused, as they felt that was a violation of privacy and was discomforting. So it went nowhere. And I continued to struggle. Even through the height of the pandemic, they did not stop payments. Evil, evil people.
I know now they they don't have to tell you the truth when you contact them. As I've seen in other posts, they suddenly get very helpful right when a loan defaults. That or they just sue you.
Just this morning, I received this email from them. "[My name],
The legal evaluation on your loan(s) was completed. We intend to file a lawsuit against you and/or any other applicable party on your loan if you’re unable to set up acceptable payment arrangements with us before your loan defaults.
Take this opportunity to prevent legal action before your loan defaults. Call us at (302) 206-5074 as soon as possible! We’re here to help you, Monday–Friday, 8 a.m. to 9 p.m. ET.
For the most up-to-date information, log in to your account
Sallie Mae"
Now, I know they employ scare tactics like these. But they wouldn't do it if it didn't work, and it's working. I'm scared.
I rent. I don't own the car I drive. I have no assets. I don't know what anyone expects they can get out of me. I am trying to make more money, everyone is! In my industry, it takes a long time to get established and higher in life, but it won't go anywhere if I can't build from month to month. My step-father has always been my number #1 supporter in this, but he knows even less about this kind of stuff than I do, since he didn't go to college. "You can't squeeze blood from a rock" he'd say.
Should I ignore this and try my best to avoid legal decisions from them? Should I take them up on their offer to help? ("help")
I don't want any payments or phonecalls that SM records to come back to bite me, so I'm kind of paralyzed by all this. I just want to go to work, enjoy my day, and come home to the love of my life and build our life together slowly. But no, I have to become a legal scholar to weave around a system made to screw me over.
It's taking every ounce of patience I have not to break down right now. Can someone please give me guidance? I have no one to turn to.
If there's any helpful info or context that I've left out, please let me know. Again, I don't know what time doing.
Thank you in advance, and I hope you're all doing well.
Ashamed-Assistant787@reddit
I’m in a similar situation. My original $60k loans are now equal to $90k. I’ve tried for years to consolidate with constant denial and 2 years ago after defaulting SM set up a reduced interest rate program cutting my monthly payments from $980 to $507. Well, that program just ended and when I called to tell them I can’t make the NOW $1114 payment I got no help, even though I received emails everyday saying “we can help!” The guy on the phone literally said to me “You are severally delinquent and no one is going to help you.” At this point, I was only a week late on my payment and he said I can try calling in a month or so. I called a couple of weeks later and the woman told me there were no programs available right now and I have to wait a few months of no payments before anything MIGHT pop up for me. I saw a post not too long ago about Yrefy. So I called them, not knowing before that I had already tried applying online before when I was denied by SoFi. They were extremely helpful and pleasant on the phone, said they deal with SM all the time. I’m in the beginning stages with Yrefy right now, but I’m really hoping this all works out and I’ll be done with SM for good. I just got a threatening email from them today saying they would soon take legal action. It’s scary and this is what lead me to your post. I hope that your situation improves and defaulting is literally the only answer for in any case honestly.
lotus_on_reddit@reddit
Any update with Yrefy? Also in a similar boat paying $1,035/month and having to choose paying utilities or SM every month
716TLC@reddit
I agree with all the other responses here. I'm not a lawyer, but I defaulted over $100k with Navient (which was originally SM) and passed my SOL last year. I feel your pain, I've been there. In time, you'll be free of this stress and be able to move on.
The only thing I would add is the fact that Sallie Mae starts behaving differently once you've stopped paying and fully default. That's the moment they actually try to work with you on payment arrangements and settlements. When you're paying, they have you on the hook. When you stop paying, they get nervous and offer more options so they can get your money again. So default on the loan without a cosigner, pay attention to court summons if they ever come. Pay the loan for angry grandpa. No need to have him and SM stress you out. Not sure about the stepdad loan, check garnishment laws about his benefits. Consider how your future spouse would be impacted financially for all options.
Your credit score will tank no matter what you do, whether it's default, garnishment, partial payments, or carrying high debt. So, consider this, whatever the legal amount SM could garnish from your income is probably a lot less than your current payments. That's if SM even pays the costs to sue.
I wish you luck in your default journey and hope peace of mind comes quickly.
No_Success2550@reddit
If you move out of the country permanently then?
rachelalexa3@reddit
Not to be repetitive, but maybe it will help you feel more confident in the decision if you’re hearing the same answer from multiple people. STOP partial payments and default!!! 1. Partial payments are still tanking your credit score, only full payments don’t negatively affect credit. 2. After you have defaulted see if you can work directly with SM to negotiate lower monthly payments or settle for a lump sum in cash (another commenter mentioned this and I was also advised this by my student debt lawyer) 3. If you don’t want to negotiate on your own, hire a lawyer that specializes in student debt- not just regular debt- the laws for the two kinds of debt are very different. I paid $2500 for my lawyer, but it saved me a lot more in the future. I will say if you go this route- make sure you stay in consistent/frequent communication with your lawyer so you know they are doing everything they can. Unfortunately like all professions, sometimes there are lazy/bad lawyers - I ended up switching to a different paralegal in the firm I hired to represent me. ** You WILL be okay, get organized and proactive , the only “wrong” thing you can do is put your head in the sand and hope it goes away (unfortunately I did this). I have substantially more debt than you ($100,000 just in private loans) and made the wrong choices and got sued, and still managed to negotiate $300 monthly payments….sure they will basically be for the next million years, but they are sustainable and I can continue living the lifestyle and saving otherwise. YOU GOT THIS!
ravenouslywondering@reddit
The letter is a threat. Until they serve you with actual papers of being sued, I wouldn’t worry more than you already are.
Agreeing with most of the advice given.
See if you can refinance the loan with your angry grandfather, and possibly your step father. Then default it. You have no assets. It would cost so much more to take you to court and settle this than the amount that you owe.
Again, I’m also not a lawyer — but with my extensive Reddit research this is probably what I can gather from the information you provided.
I’m sorry you’re going through this. It is hell.
ravenouslywondering@reddit
Refinance and remove them as co-signers*
Chijesu@reddit
Or since you been paying it regularly. Why not ask for a co-signer release. Then default if you must after
wolfgang9996@reddit
Take out a new credit card/line of credit. Refinance to private loans with no cosigner, default, negotiate new terms or wait for them to be charged off to collections. Never look back.
DisembarkEmbargo@reddit
I'm sorry you're going through this.
They're lying to you in that email. That's a threat. If they wanted to sue you they would. They would have sent you a physical letter of a court date.
Save yourself some headache and start saving your money for a possible lawsuit but also for your wedding and your rent and food.
My advice (I am not a lawyer): if all of your passed Grandpas assets are no longer in his name and have been passed to his heirs or have been sold - stop paying the loan.
I suggest you continue to pay the loan that is cosigned by the grandpa that's angry about the loan until he passes.
I also suggest that you continue paying the loan for your stepfather that cannot work. You could look into things and see if his benefits are able to be garnished if he defaults on a loan. It seems like social security can't be garnished to pay back a debt unless they win a judgment. https://www.consumerfinance.gov/ask-cfpb/can-a-debt-collector-take-my-social-security-or-va-benefits-en-1157/ Oftentimes they take a few years to sue at least like one. So if you can settle that debt before they sue your cosigner then his credit score will only hurt a little bit. Of course, talk to him about it.
Or you can go buckwild. Default all of your loans and settle the balance before they sue. I did this but I had no cosigners. You can usually settle for 30% of the loan balance. That means you will have to save up about $15k in 2 years. They stopped charging interest after you default so you could lock 50k price. You would have even more time to save up money because sometimes when the loan "servicer" takes you to court you have time to settle the loan.
Good luck!
paulm0920@reddit
Social security can’t be garnished by private lenders even with a judgement.
ProleDBA@reddit
This is typical for SallieMae. I am sorry you are going through all of this. However, congratulations on your engagement and upcoming wedding! :) I think if you default, you have a long way before you get to the lawsuit phase. They threatened me with a legal review when my mom was dying and they wouldn't work with me on payments. That was back in 2018. I am knocking on wood that I can make it to the SOL. I think you should Google strategic default for at least some of your loans and maybe consult with a student loan or consumer debt attorney that handles student loans to advise you. Or maybe try leagl aid in your area so you can prepare. Also if you marry - see what you need to do to protect your spouse and your earnings in the future. I wish you all the best of luck. :)
gruppybruppy@reddit
Only pay back the one that your living grandfather cosigned. Try to refinance him off if you can increase your income in the future. If you have no assets just ignore the loans that have no co signer. Take this time to save up as much as you can, they will take a long time to actually sue you and once they do hopefully you have saved up some money for a settlement. If they do sue you do not ignore the letters and respond to a court summons. Everything other than a court summons can be ignored. Change all of your contact info on sallie mae to a google phone number that goes to VM. Once you default go absolutely zero contact. Figure out your states SOL and skirt around for that time. Tell your family to ignore everything. It will be ok, your good. Its not a big deal and is not a crime.