Need Help on Technical Student Loan Question

[danaf]

I have a Sallie Mae Student Signature loan. They suck. I've had it since 2002. I've paid tons of interest and the principal has gone done very little.

Ok - the min. payment on this loan is something like 139 a month. For the past three months or so I've been paying 199 a month. Whever I pay more than the min. they like to extend out the min. payment because of course, they never want you to pay it down. And depending on how much more I pay, sometimes they lower the min. payment. Jerks! So this month I had to send in a letter with my payment asking them to apply it all to the principal.

I need to get this loan paid off and so on my schedule J I want to put 199 a month or even a little more. Do you think this would fly?

If not I could call Sallie Mae and insist on them upping the min payments. I'd rather not have to do this because it would mean a fight so I'd thought I'd ask first on the forum.

thanks

[BassBoy]

Can you refresh our memory...........filing 7 or 13? From some of your past posts (only a month or so), I get the impression you are considering a 7 (some of your posts talked about the Ride Through). If so, a "Signature Loan" would be discharged in a Ch.7 (it's a personal loan). Just because the loan is Sallie Mae does not necessarily mean it is a government loan. Of course, if you discussed the situation with the student loan some time ago, then I guess I haven't answered your question.

[Runnin on empty]

danaf,

As far as I know, Bassboy is correct, a Sallie Mae loan is not a "student loan" in the traditional sense, and once you file, it will be discharged. Only the Stafford student loans, which are guaranteed by Uncle Sammy are non-dischargeable.

[lrprn]

I have a Sallie Mae Student Signature loan. They suck. I've had it since 2002. I've paid tons of interest and the principal has gone done very little.

I'm sorry to share that Sallie Mae is one of the worst student loan lenders to deal with. Check out the complaints posted here by folks just like you who are trying desperately to pay these loans off - http://www.consumeraffairs.com/finance/sallie_mae.html

In Feb 2008 the state of New York filed a class action lawsuit against Sallie Mae - not for the horrible things they do to student lenders, but because they committed securities fraud - http://news.moneycentral.msn.com/tic...932&Symbol=SLM

I wish the news was better, danaf. Unfortunately you've joined a long line of folks that Sallie Mae has screwed over. I hope you have better luck dealing with them than most have.

[danaf]

bassboy & running on empty - oh how I wish that were true. A person can only dream. The 2005 revision made even sallie mae sig loans non-dishargable. Thanks to a couple of corrupt congressman & a corrupt Bush Administration. And yes - I'm filiing a 7.

I've researched this thing 1000 different ways. The best I can hope for is that when the dems get into office, they change this and make it retroactive. (among other aspects of the bk reform of 2005)

Beyond that - I'm stuck paying this thing for now. And I figure if they can alter my min. payments, then I can put whatever for my monthly payment on the schedule.

[danaf]

Here's an interesting article about the non-dischargability of sallie mae signture loans in bk.....for anyone who may be interested.

http://www.newamerica.net/blogs/education_policy/2007/05/private_loan_bankruptcy

[CindyLou]

do you pay online or with a check?

If you pay by check I have have a solution for you...you can send it two checks in the same envelope. Send check #1 for the amount of the minimum payment.....mark in Red ink in the memo "minimum monthly payment" then on check #2 mark "extra payment to principle".

chances are you pay online.....but I thought i'd include the "trick" just in case.

[danaf]

Cindylynn, I pay by check but I appreciate your 'trick' and I'll keep it in mind for the future.

What I'd really like to know though is what I can put down on my schedule J without raising red flags with the trustee. Does any know? Since this isn't a gov't loan, the amounts I owe each month fluctuate as per my original post.

[BankruptPinoy]

Hi BassBoy. May I please ask you a question?

I am confused about these Sallie Mae career loans.

The Sallie Mae loan is a signature loan based on credit history. Our continuing education programs here at the University with fees over $5oo are eligible for Sallie Mae loans,and they are for the most part cosidered career
training loans. I am not aware of TERI or other nonprofit funding throught this program. You may view additional details on Sallie Mae career training loans at:

http://www.salliemae.com/get_student_loan/find_student_loan/training_loans/career_training_loans/

Would a loan like that be dischargeable via Chapter 7?

[danaf]