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With the economy at its worst, what are student loan lenders doing about this?

November 20th, 2009
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miyoshi82 asked:

I’m assuming lenders like Sallie Mae should know that the payments are slowly coming in than usual due to the fact that people are getting laid off and jobs are scarce.

Now I have $25,000 in student loans. I’ve gone into deferrment for now since I’m only taking one class right now while I look for a job that I can start saving up to pay off my student loans.

I can’t keep defering the payments forever!

ronniet Financial Aid , ,

  1. Jack’s suppressed potential
    November 23rd, 2009 at 05:27 | #1
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    they are goin to quit loaning, give little credit cards so they can make sure we spend it on food (not $%^ing rimbs qshawn)…and other school stuff..

  2. NotAnyoneYouKnow
    November 23rd, 2009 at 06:26 | #2
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    Miyoshi:

    Like all lenders, Sallie Mae is experiencing a higher-than-usual delinquency rate on the loans it originated, and on the loans that it services for other lenders.

    In the 4th Quarter of 2008, SLM’s 90-day delinquency rate rose to 2.6% of all outstanding loans.

    I think some students have a tendency to forget what Sallie Mae is – the company is not a social service agency, or a government benefits program – it’s a business.

    Coca-cola doesn’t give away free soft drinks to consumers because the economy is bad, and Allstate doesn’t insure your car for free. Dell won’t help you out with a free computer, and Starbucks isn’t inviting everyone by for free lattes on Thursday afternoons.

    Sallie Mae is a lender – a lender with shareholders. Their product happens to be loans. Like all other businesses, Sallie Mae needs to bring in money, and it needs to pay its employees, its shareholders and its overhead. Despite what people tend to think, Sallie Mae is NOT a profitable business – Sallie Mae lost $243.3 million in the 4th Quarter of 2008 – a dramatic improvement from losing $1.64 billion in the 4th quarter of 2007.

    Like a bank – Sallie Mae takes investors’ money and makes loans. They pay their investors back with the returns on their loans – and they take the repaid lending funds and make new loans available to additional students. When old borrowers don’t pay, Sallie Mae loses money in two ways – they lose on the original loan, and they can’t originate as many new loans.

    I think you’re looking at this a little simplistically. “Well, doesn’t Sallie Mae know that we’re all struggling out here, so I’m thinking that they should be cutting us all a break”. Yes, the company knows that times are hard, and they’re seeing that in operating losses and delinquencies. But if you’re thinking that Sallie Mae can afford to be nice and cut everybody a little slack, and maybe forget about some of the money that people owe them, and give them a lot more time to repay – I’ll ask again – are Toll Brothers giving away free houses? Can you stay at Hilton for free? Has Disney made Saturday nights half priced?

    How is Sallie Mae any different?

  3. J S
    November 26th, 2009 at 00:59 | #3
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    If you think you deferred payments with Sallie Mae I highly advise you to check up on that again.

    I called in January to do it but had to call back in February where they said I had to do it online. I did it. I filed for unemployment deferment and was approved. This option is useless because I got a bill saying I was late and incured even more late fees on top of it. Turns out you can’t defer payments. Well, not with a private loan. There was no hint of this or that all the information I sent was only towards non private portion something that doesn’t exist. It is a private loan so why I filled out everything and mailed them all the requirements is beyond me.

    I can now pay 50$ to process an unemployment forbearance. It’s really difficult to contact them but when you do they are all from India. I asked and I don’t believe ‘Martin’ was his real name. Maybe if I move to India I can get a job with Sallie Mae and pay them off.

    So, to answer your question they’re doing nothing and while you believe you have deferred your payments you may have only deferred the federal portion. Seems like the private portion is mysterious. You would believe with one lender that the total amount is what it is and dealing with it is all the same.

    Be Careful.
    I have so many separate loans from school I can’t even validate they are real. Any random association can bill me for student loans and I wouldn’t know the difference. I’ll probably end up paying half my loans to somebody I never even had a loan from.

    AES was pretty simple. I did it by phone quickly. The federal loans was a bit more tedious. Sallie Mae. Forget about it.
    With all these included, my bills would near $2,000/mo. and I make $600/mo. on unemployment.
    I live in my car now though so less rent it’s about 1,000$ without school loans.
    I some how saved money from working so I’m just losing 400$/mo. which will soon catch up with me.
    I’ll have to find a good job, but since that’s impossible I’ll need 3 and not sleep. Still impossible.

    I’m considering moving to Mexico which says a lot for the economy, no offense to Mexico.

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