Sallie Mae is late to the party

[discombob1]

I got an email from Sallie Mae telling me that since my BK is concluded my payment is due. Gee thanks, you've only been billing me and I've only paid every month since filing last August.

Anyway, my point on this is that Sallie Mae never defaulted me and never yanked my online access. I paid each month like normal, and my interest rate hasn't changed. I figured I would share since I had those questions after I filed. Hopefully my experience can help ease someone else's mind.

Maybe they are just that late catching on!

[IamOld]

Just curious - did they even put in a claim???

[discombob1]

They didn't do anything, but I was no asset Ch 7. They may not have to since student loans aren't dischargeable.

[IamOld]

AH! CH 13 here :-) SO far the website isn't turned off either...I mean like you said, they're not discharable and not going anywhere!!!

THanks!!!

[iswmle]

I am grateful to have strayed away from Sallie Mae. At my job I have gotten many calls about them, and from what I heard they can be quite ruthless. I think you are one of the lucky ones, discombob!

[discombob1]

Really? Huh, glad I didn't have those problems! I do wish all my loans were dischargeable but oh, well... life goes on!

[iswmle]

I was talking to a friend today about her own issues with Sallie Mae. She is paying $300 a month. That is ALL interest. She can't touch the principal and is seriously considering defaulting. I felt real bad for her, 99% of the nightmare stories I hear regarding student loans have to do with the private ones, especially Sallie Mae.

[treehugger1]

The student loan issue is riding another bubble. The estimate of total outstanding student loan debt is between $850 billion and $1 trillion; more than the total credit card debt. The bubble is that tuition, books, etc keep increasing, but the increases are fueled by the available loans. This is not all that different from increasing house prices because loans were easy to get. There is shitstorm coming for higher education.

[IamOld]

The student loan issue is riding another bubble. The estimate of total outstanding student loan debt is between $850 billion and $1 trillion; more than the total credit card debt. The bubble is that tuition, books, etc keep increasing, but the increases are fueled by the available loans. This is not all that different from increasing house prices because loans were easy to get. There is shitstorm coming for higher education.

Right Treehugger - let's also remember that many other nations actually PAY you to go to college (Europe except for the UK) it's HARDER to get into university, but you also don't become an indentured servant.

When I went to college in "major state university" about 3 decades ago, it cost me - drumroll - $600/semester!!!! for F/T study! BUT that's because they got most of their funding from the state/feds - today the average funding is about 25%.

Treehugger is right - can you imagine what will happen when people start defaulting on student loans by the thousands? There is a fellow where I work who did a strategic default - like you treehugger - as he's 15% permanent garnishment for student loans is LESS FAR less than what he would have had to fork over otherwise!

[disconapper]

Treehugger is right - can you imagine what will happen when people start defaulting on student loans by the thousands? There is a fellow where I work who did a strategic default - like you treehugger - as he's 15% permanent garnishment for student loans is LESS FAR less than what he would have had to fork over otherwise!

And IamOld is on point on this one. The recent grads aren't getting the jobs like college graduates used to, it's going to be nearly impossible for a good majority of them to make the monthly payments. My cousin just graduated last year, 80K in student loan debt, guess where he works...retail....$7.25 an hour (and there is nothing wrong with that, he loves his job)...but no way he can afford the loan payments, apartment rent, insurance for his car, cell phone, gas and oh yea...food....

My sister has over 120K in student loan debt, we were talking the other day and she estimates it will be paid off in about 30 years. LOL

Sometimes I consider going back to college, a few years back I completed the FAFSA and learned I did not qualify for loans or grants. (I bet I do now.) But overall, I'm very glad all my student loans are way behind me.

I'm interested in watching the amount of defaulted loans over the years and what happens to Sallie Mae when SO many people aren't going to be able to pay.

[IamOld]

Hello Disconapper! Funny you mention this - purely by accident I caught a few mins of CNN just during the day today, and they were talking about EXACTLY what you wrote below...I think there will be very very serious reckoning on this issue...the question is - will the gov't at that time bail out Sallie Mae, or offer a blanket "amnesty' to the indentured servants....

And IamOld is on point on this one. The recent grads aren't getting the jobs like college graduates used to, it's going to be nearly impossible for a good majority of them to make the monthly payments. My cousin just graduated last year, 80K in student loan debt, guess where he works...retail....$7.25 an hour (and there is nothing wrong with that, he loves his job)...but no way he can afford the loan payments, apartment rent, insurance for his car, cell phone, gas and oh yea...food....

My sister has over 120K in student loan debt, we were talking the other day and she estimates it will be paid off in about 30 years. LOL

Sometimes I consider going back to college, a few years back I completed the FAFSA and learned I did not qualify for loans or grants. (I bet I do now.) But overall, I'm very glad all my student loans are way behind me.

I'm interested in watching the amount of defaulted loans over the years and what happens to Sallie Mae when SO many people aren't going to be able to pay.

[disconapper]

Hi IamOld!

It will indeed be interesting to see what all pans out. These kids have big dreams of big jobs with big pay, and that's all good, that's the American way. However, I feel when they really and truly sink their teeth into the job market and are competing against people like me, a difficult reality will settle in.

I don't have kids at the moment...but I'm a big fan of my family tradition...go to a service academy and let the military pay for your education...or enlist for a bit until what you figure out what you want to do in life.

I can't imagine graduating college with a Engineering degree and working a $10-$15 per hour job in a different field with $50K-100K in student loan debt, that's without credit card debt acquired in college...

I think there will be an influx of bankruptcy filings and Sallie Mae is going to need a bailout...

[IamOld]

Right and I hope that instead of SLM getting bailed out it will be us indentured servants!

However, getting into a service academy is VERY hard, very limited spaces, and...especially since you're in MD, I'm sure you've heard that the quality of instruction has taken a bit of a dive in Annapolis...

BY the way, best of good luck on your 341 next week!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Hi IamOld!

It will indeed be interesting to see what all pans out. These kids have big dreams of big jobs with big pay, and that's all good, that's the American way. However, I feel when they really and truly sink their teeth into the job market and are competing against people like me, a difficult reality will settle in.

I don't have kids at the moment...but I'm a big fan of my family tradition...go to a service academy and let the military pay for your education...or enlist for a bit until what you figure out what you want to do in life.

I can't imagine graduating college with a Engineering degree and working a $10-$15 per hour job in a different field with $50K-100K in student loan debt, that's without credit card debt acquired in college...

I think there will be an influx of bankruptcy filings and Sallie Mae is going to need a bailout...

[disconapper]

Right and I hope that instead of SLM getting bailed out it will be us indentured servants!

However, getting into a service academy is VERY hard, very limited spaces, and...especially since you're in MD, I'm sure you've heard that the quality of instruction has taken a bit of a dive in Annapolis...

BY the way, best of good luck on your 341 next week!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

LOL..we're an Army family...we like that academy in New York...but yes the academies are very difficult to get into, you are absolutely correct.

Thanks for the good luck wishes, I'll be glad when it's over!