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JBaxLaw, Lawyer
Category: Consumer Protection Law
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Experience:  Wide experience in consumer rights law.
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I am being constantly harassed by Sallie Mae regarding my student

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I am being constantly harassed by Sallie Mae regarding my student loan. The loan was sold to Sallie Mae in 2007 by the State of Illinois student loan provider, IDAPP. The school is based in IL though I went to a campus in WA state. IDAPP sent a letter noting they state had sold a porfolio of loans to Sallie Mae and that the transaction would be completed some time in "August or September." No firm sale/transfer date was ever given. Once the sale was done Sallie Mae provided no information on where to send my loan payments or an account number until I only received a late notice and demand for additional $. I received the payment booklet THREE DAYS AFTER the first payment was due.

Ever since I have been in a battle with them over this. In reviewing my loan paperwork with IDAPP it notes the lender can go after you for "fees and penalties" but there is no information regarding what those penalties or fees are, when they apply or how they are calculated. The late notices I constantly receive from Sallie Mae and the 4-6 calls every week also have not provided any information. I only learned what the fees and penalties are when, after 4 years I finally was contacted by an "advocate" from Sallie Mae. I have made my loan payments consistently each month and do not consider myself in default, though admittedly on a few occasions the payment may have been late a few days. On one or two occasions I made double payments when a month was overlooked.

I suspect that there are other students in the same situation who also had their loans sold to Sallie Mae. Some may have acquiesced and given Sallie Mae the demanded money, however, Sallie Mae's tactics and collection practices demand greater scrutiny. The information provided by the lender(s) on fees and penalties would not meet any real truth in lending guidelines or regulatory requirements, I suspect.

How should I handle this - I am thinking of filing suit but fear the costs of litigation.
Martin Nordby
Surprise, AZ
Submitted: 4 years ago.
Category: Consumer Protection Law
Expert:  JBaxLaw replied 4 years ago.

JohnQAttorney :

Hello, I appreciate your use of this service. I will be assisting you with this question.


JohnQAttorney :

Have you spoken with management at the loan administrator?


Customer: replied 4 years ago.
I have tried to speak with supervisors but have not gotten very far. I am usually sent to one of their aggressive collection people.
Expert:  JBaxLaw replied 4 years ago.

I appreciate the follow-up posting.

A civil suit is possible to address inaccurate late fees and penalties being applied by a loan administrator. However, that is typically a last resort as the time and expenses involved may outweigh the cost of the late fees and penalties. I see you have written four letters, but I am unsure of the approach taken otherwise.

A succesful approach is to take up such issues in writing with a loan administrator in a clear and concise manner. A chronological accounting of events including marked exhibits such as notices, statements, and proof of payment is the first portion of a demand letter typically used in such scenarios. Such a letter would then typically include a demand to correct account errors and cease collection attempts. It is generally a good idea to identify responsible management at more than one level of the entity and to send a copy to both via certified mail, return receipt requested. This may seem like a lot of work, but it is much less work than preparing for a civil suit should informal resolution not be succesful.

If the written effort is not succesful, then consider attempting to utilize the US Department of Eduction Ombudsman which can assist in such matters. Here is the site for that office, at:

Please be so kind to leave me a positive feedback rating, if you have a few seconds. You will be prompted for feedback after pressing the accept or submit button. You can still continue to post follow-up questions even after the accept button is pressed.

Thank you so much

JBaxLaw and 2 other Consumer Protection Law Specialists are ready to help you
Expert:  JBaxLaw replied 4 years ago.
Thank you so much for allowing me to assist you.

Please let me know if you need any other assistance. Thank you for accepting my answer and ensuring that I receive credit for assisting you.

Thank you again

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