My scared to death of Sallie Mae
Posted by littlewashu45@reddit | studentloandefaulters | View on Reddit | 35 comments
Hello there to whom I am speaking too,
I have 4 loans with Sallie Mae and my forbearance ended on October 11th, and I found out how much I owe, like $405.50, for November 7th. I know that after 15 days as a mini grace period; you are considered late. I owe 24,000 in debt. I am applying for SSI, and going to talk to my lawyer about my application summary for SSI my cosigner is my mother, who is on SSI due to her back problems and can't work anymore. I will call them tomorrow to say that I am filling out for SSI, with my mental problems like GAD and PSTD will this help delay the payment, or able to lower it too? Or a bad idea to mention that to them? I am not working right now, and I am trapped in a corner. I have been having a major freakout for days, completely scared of them taking everything from my mom. I had major mental breakdowns for weeks. I am terrified of Sallie Mae. Thank you all for the help.
LisaInSF@reddit
SSDI? If you are disabled (cannot work) due to a diagnosed medical condition, I don’t see how you will be able to make the payments. However do not be “scared to death” over this. There is nothing they can do to you without suing you and getting a court judgment. If they know you are disabled, they might not pursue that avenue, because creditors cannot take any portion of your disability benefits.
littlewashu45@reddit (OP)
it's SSI I am trying to get, and I know my General anxiety disorder gets to me. I am just worried that they freeze your bank, and take all the money in one go.
Thumper727@reddit
Depends on the state you live in. Mostly they can't take federal benefits and they can't take a primary residence or vehicle. Also it takes months sometimes years for them to even bother to sue you which they will be required to do before any assets are taken. If a judge allows them to take assets, most states require you to have a minimum standard of living so debtors can only take a certain portion not everything. If you both truly have nothing and only have federal benefits then they can't take anything, in most states. I will suggest you read up on your state debt collector laws and maybe asking real lawyers some basic questions as the Internet is not always correct. Don't freak out. Nothing will happen quickly. Make sure they have current address so if they do sue you you will get the summons because if you don't show up to court the judge automatically sides with the debtor. I have navient originally sale Mae loans it's been about 6 months since I've paid. They just keep emailing me. I want then to sue me so we can work something out and I can move on. My income is only SSDI they don't really care. They may want to work with you and offer a limited time lower interest/ lower minimum payment. That's up to you to decided if it's for the best. Again a lawyer may be helpful in deciding your best route of action.
littlewashu45@reddit (OP)
I have no income, and everything is in my mom's name. Still worried that they sued us.
vsandrei@reddit
Move between different states so the debt buyers can't find you. If they sue you in the wrong venue, you can countersue for FDCPA improper venue violations.
vsandrei@reddit
SSDI and SSI are exempt from execution of judgments under Federal law. Your financial institution is required to protect the most recent two months of directly deposited benefits. Additional amounts may be protected under your state's exemptions from execution. Do not commingle direct deposits of benefits with funds from other sources. Use a separate account.
littlewashu45@reddit (OP)
Oh you mean like the bank of your state?, not nationwide.
Usukidoll@reddit
It means a local bank or credit union not the giant well known yet crummy banks like Wells Fargo
vsandrei@reddit
The more local, the better.
National banks (and potentially Federally-chartered credit unions, too) can be levied from anywhere in the United States with no domestication of money judgments needed under a Treasury rule from roughly twenty years ago. This is especially important for any judgment debtors that move between states. You don't want to get caught attempting to claim exemptions for a money judgment awarded thousands of miles away only to find out that only residents of that state are allowed to claim exemptions in that state.
Pick a financial institution that is state chartered and has branches only in that state. That way you know exactly which state's exemptions are permitted and how to claim those exemptions should you get hit with a levy.
LisaInSF@reddit
Are you 65+ ?
littlewashu45@reddit (OP)
Oh no, but you can still get ssi for other means, like my mental problems.
LisaInSF@reddit
Okay, I hope you get it. FYI, creditors can’t take SS retirement, SSI, SSDI, other disability benefits, workers comp, etc. The funds are “exempt.”
Usukidoll@reddit
That's what I was saying but another commenter who I blocked was spreading misinformation in another thread about what is safe from garnishing.
The cosigner has SSI benefits while OP is trying to apply for them. Private student loan lenders can NOT touch federal benefits. Cosigner is also judgement proof too. And by the way, the SSI maximum is less than a thousand, so depending on how much OP is qualified for, the payments may not be able to be made anyway.
LisaInSF@reddit
I’m surprised at how many people do not know this. Folks need to also know that state exemptions apply to a family home.
Ok-Pangolin-8114@reddit
Best thing to do is try and refinance! While it is common sometimes for lenders/banks to not permit refinance before receive a certain amount of payment, there are equally as many who will and offer better interest rates!
littlewashu45@reddit (OP)
Yes, I know and I know they told me I need to miss a payment when the 16 day comes the collection will call us, to try to help make a lower repayment. Mom and I don't care about our credit scores, I am just scared of them suing us and taking everything and freezing our bank accounts. I been having mental breakdowns daily now.
daily
Soccerkrazed@reddit
They won’t freeze your bank accounts, the worst they can do is garnish your wages. Also 24k is nothing to them.
Please don’t stress yourself out over this.
burn3r_222@reddit
I only owed them 22k and they still came after me.. i also have ungarnishable wages, and no assets at all no car no home .. when i called they told me i need to ask someone for help .. they’re ruthless and dont care
littlewashu45@reddit (OP)
Hugs, you mean Salle Mae?
burn3r_222@reddit
Yes sallie mae
littlewashu45@reddit (OP)
Man, I missed my first payment, and I have no income, trying to get on SSI for my mental problems. My mom is the cosigner, and I'm so scared they will sue us.
burn3r_222@reddit
In certain states they cant take your home or car. And at most they can garnish her wages but only 15% BUT if she makes 50x less than minimum wage shes exempt from wage garnishment. SSI im pretty sure in ungarnishable.
Usukidoll@reddit
Government benefits are exempt so all types of social security are protected...just don't default on federal student loans though.
littlewashu45@reddit (OP)
I live in Mississippi, and she on ssdi
littlewashu45@reddit (OP)
I am in the same boat I don't owe anything.
Usukidoll@reddit
Federal benefits like Social Security are protected from garnishing though so tough sh*t to the lender.
littlewashu45@reddit (OP)
That is true. I only have my little inheritance from my mom, which is about 1,500 dollars in my bank. I am just scared that they will take all of that. Do I need to take all my money from my bank, and only leave the minimum?
Usukidoll@reddit
If you're that nervous, then just do it. Better safe than sorry cuz it will suck once there's a bank freeze should there be a lawsuit.
littlewashu45@reddit (OP)
Okay, it is better to keep it at home than the bank these days anyway.
Usukidoll@reddit
Yup
littlewashu45@reddit (OP)
They can't toss you in jail?
Usukidoll@reddit
No
vsandrei@reddit
You need to review the list of exemptions from execution for your state.
Usukidoll@reddit
What would that be under?
I know certain situations make a person judgement proof
vsandrei@reddit
NCLC maintains a guide updated annually:
https://www.nclc.org/resources/no-fresh-start-2023/
You can also check your state's legislative codes . . . or consult with your local legal aid society if eligible.
Collection proof not judgment proof.