Many students have taken out expensive loans from Sallie Mae, a for-profit entity that puts students into subprime loans. This practice is illegal and has led to a Sallie Mae student loan lawsuit. The Illinois AG, Lisa Madigan, reviewed hundreds of consumer complaints and phone calls and filed state lawsuits. These suits seek debt relief for borrowers who have been harmed by the company’s servicing practices. The CFPB has filed a civil suit against Navient, the company that serviced the loans from Sallie Mae.
The Department of Defense filed a lawsuit against Sallie Mae and has proposed a settlement requiring the company to pay $60 million to servicemembers.
The Department of Defense estimates that 60,000 servicemembers will receive compensation. This lawsuit was filed in the U.S. District Court of Delaware. It is pending approval in that court. The FDIC is investigating the case and is trying to protect those who serve the country.
The Department of Defense filed a complaint against Sallie Mae and has filed a proposed settlement. The settlement will require Sallie Mae to pay $60 million to service members who have fallen behind on their payments. The Department of Defense estimates that 60,000 servicemembers will receive compensation. The lawsuit is currently pending in the U.S. District Court for the District of Delaware. If you have any questions regarding the suit against Sallie Mae, you can contact a law firm today to learn more about your options.
The settlement covers the entire portfolio of student loans offered by Sallie Mae.
It includes private student loans, direct Department of Education loans, and Federal Family Education Lending Program student loans. As a result, it provides compensation to servicemembers for their financial hardships caused by Sallie Mae’s violations of the SCRA. If you are one of the many affected individuals by the violations of the SCRA, consider seeking legal advice from a California law firm.
The Department of Justice has filed a lawsuit against Sallie Mae and its subsidiaries, Navient. The complaint states that Navient misled consumers by concealing repayment rights to save operating costs. During the investigation, a lawyer will work with the Department of Justice to ensure your legal rights are protected. If you have any questions about the suit, you should contact a law firm. The attorneys involved in the case will explain the case to you in detail and help you decide if you should file a case.
The Department of Defense has filed a lawsuit against Sallie Mae and is also seeking $60 million in compensation for service members affected by the company’s violations of the SCRA.
The proposed settlement is pending approval by the U.S. District Court for the District of Delaware. It is not uncommon for companies to violate SCRA laws. For example, to make their student loan payments easier, Sallie Mae has been charging a 5% late fee for missed payments. This charge is illegal.
In addition to the lawsuit, there is another lawsuit against Sallie Mae by the Department of Defense. The Department of Defense is seeking $60 million in compensation for service members who have suffered from the company’s mishandling. The proposed settlement is pending in the U.S. District Court for the District of Delaware, but the government is encouraged to seek it. This settlement will ensure that the federal government protects the rights of service members and other service members.
According to the Department of Justice, the company violated the SCRA by charging an illegal 5% late fee when a private student loan is missed.
The lawsuit claims that the late fees are not based on actual processing costs and are therefore illegal. The California consumer protection laws require that such late fees be based on the actual cost of the servicemember’s service. This means the Department of Defense will cover millions of service members through the settlement.
A lawsuit filed against Sallie Mae, formerly known as Navient, claims that the company cheated consumers by charging an illegal 5% late fee for missed payments. These fees are not based on actual processing costs, which is illegal under California consumer protection laws. As such, these fees are not a good way to save money. Instead, they will only hurt consumers and make them suffer. They will have to deal with the consequences of such unpaid debt.
I have a question? Why would my student loan be more now than the amount I borrowed? I started making my loan payments to Sallie Mae on 10/10/2006. I made my payment of $334.04 monthly until 12/27/2011 I started paying extra, the amount was $340.00. Only 6 dollars but you would have thought it counted for something. My account went from being paid to Sallie Mae to Navient on 7/28/2015. At this time, I had made 91 payments to Sallie About $31,000.00 dollars paid on the loan. On 7/28/2015 the payments I was paying was $340.00 to Navient, was extra payments again not the $335.04. I made the payments to Navient from 7/28/2015 to 9/27/2016. Which was 14 payments. At that time my husband left me, I went through a divorce, which I had to file bankruptcy. I was told that the payment would be froze until my bankruptcy was over. I went back to taking classes to get my certification in Special education in the spring of 2020. I will be completed in summer of 2023. The special education certification will give me the pay I need to support myself and my 92-year-old mother. I can not make my payments at this time. My biggest question is where did all the payments that I did make go. My loan is more now than when I started. I have made a total of 112 payments, over $37000, and it looks like I paid nothing in 16 years. This needs to be looked in to.
Who can our family speak with regarding PRIVATE Sallie Mae loans? – Our family are victims of deceptive practices; historical usurious rates charged us- including altered tax statements and payments made in excess of original loan plus thousands in interest dollars from payments made and thereafter with history of payments a capitalized interest is calculated in along with all other fees for loans with annual payments made. In several instances on our statements 100% of our payments was just applied to the SM interest formula only. Federal Interest rates recorded in a few circumstances did not match the SM interest rate charged us.
Additionally, in some of the loans SM cannot provide the disbursement dates but show repayment year date. When we requested a payment history, they said that was not readily available and they would see the same report we see and redirected us to their site, and it was 8 years of payments that lacked a tally, hence the many necessary tax statement adjustments. SM requires the borrower to manual tally over 170 electronic pages representing months and years of repayments. The same report on their site could not be saved or printed out it. To access the report, it requires the borrower to go through each year review one page at a time while doing so your session is locked out. In this age of rapid technology and access to information in seconds our family believes It is intentionally created to defer the borrower from “investigation and understanding” their loan.
SM refused to provide us the total dollars on repayment of each loan. However, they, Sallie Mae was able to advise the original amount disbursed and total amount due on all loans. Which our loan balances to date are only a few thousand dollars less of the original loans. Our combined loans due SM exceed $2k a month for a single student. It is a tremendous burden for our family. A burden for any individual or family. It is a repayment model crafted as a ” rabbit hole” with no way out on payments – To summarize, one loan for $33K with an “unknown disbursement date” according to Sallie Mae’s own records -we are able to show from school years to graduation year to current we paid in full the total amount of 50k plus in a 6-year period! However, Sallie Mae has the loan maturing with today’s total due them of “45K” in December in the year 2031 @ 668. a month………….
That is a reimbursement of roughly $124,00 thousand on a loan disbursed in an “unknown” time frame of 33K that to today’s date was repaid with interest plus at $50,000 thousand dollars plus! Our numerous attempts to resolve this, attempt to refinance with them met with no results. Last month we owed 44k on statements, this month after payments we owe 45K! We have experienced non-payment tracking and weird applications of payments along with tax loan interest recorded appears to be improper in our situation. When we researched the matter publicly each article we read of or learned something new in the student lending world never applied to our family for private student loans only federal student loans.
Sallie Mae clearly used the same predatory lending formula across the board for both Federal and Private loans. For us it seems that private loans were violated more by Sallie Mae and we as the borrower have no protection rights. Our family as private student loans borrower falls victims of their lending practices and repayment terms. We believe they took advantage of a young student who desperately wanted to go to college and our elderly family member to support it through a co-sign effort. Our graduate was an honor graduate, maintains a good job serving others, has a good salary, but impossible for our student and our family to sustain such a usurious loan.
A loan we now understand was the evil lure of Sallie Mae as we recall their advice ” this will build your credit and its easy we stretch the payments out for years for students and all college students have loans”! This was told to us by Sallie Mae representatives” who preyed on our family and charge 10xs plus the original loan. So nearly 9 years of large payments and our balance remains the same.