Sallie Mae- NYS Higher Education
Complaint 74 Details

Sallie Mae’s loan products are not fully transparent and they are scams. I used them to acquire student loans for higher education and their application was mixed with mixture of private and public loans. The reasonable borrower would not normally understand. And upon graduation, I consolidated my loans, serviced by Sallie Mae’s many subsidiaries. And after forebearance wore off, I was forced to default. They apparently “de-consolidated” the loans and they had sold parts of the loans to NYS Higher Education a backstop facility for these loans without disclosing it to me. Worse, sometime later, I contacted Sallie Mae, my original lender, reviewed their original lending agreements, and they settled the debt with me based on the original loan documents, without ever disclosing that that they had sold parts of the loans or that there was another lender involved. I paid Sallie Mae under false pretenses and I was getting chased by NYS for sum of $100K based on some illegitimate copies that they had.

The financial crisis that you see today is very similar to Student Loan agencies which close bedfellows are the government entities. Sallie Mae’s public portion is backstopped by government agencies. And in return, government entities hire the private company subsidiaries, like General Revenue Corp ( Sallie Mae subsidiary) to collect on defaults and tags the collection fees and interests. The longer the default is dragged out and higher the collection fees ( which is recited in one inch volume of contract between NYS and Sallie Mae) , NYS basically gives money back to Sallie Mae by way of their subsidiary. The person who wants to settle their debts can’t b/c it’s not economically in the best interest of Sallie Mae or NYS.

Sallie Mae denied wrong doing after they sucked a lum sum of about $70K from me and left me with a legal issue with NYS. NYS claims that they were not aware and since I am the borrower, I have to suffer. The documents that Sallie Mae sent to NYS is nothing short of $11K and the rest are collection and some fees which by books and records of NYS is their internal records. If anyone knows from dealing with the government, their records are shotty.

NYS has an outline of borrower's rights to be heard and yet, there is no case on this point b/c the administrative law judge who presides over these hearing never are fair and they "rubber stamp": every decision. I was unfortunate to be victim of a decision on two occasions- first time when they did not hear me, and second, they decided to go with their excel spread sheet that they had in their backoffice. I am being chased for 100K because Sallie Mae did not disclose and government doesn't care to listen.