Consumer complaint received 2018-11-15
Company: Student Loan Finance Corporation
State: ND
Product: Student loan
Sub-product: Private student loan
Issue: Struggling to repay your loan
Sub-issue: Problem lowering your monthly payments

Complaint:
XX/XX/XXXX - Email to my account manager stating I was past due on my loans & asked what I could do to get out of default status. 

XX/XX/XXXX - XXXX  : Thank you for contacting our office. The automatic payment has been returned on XX/XX/XXXX. Are you able to make the XXXX payment? You have used all of your assistance on the account. The only option you have available is to reapply for the Income Sensitive repayment plan. There is an administrative forbearance available if you qualify for the program. Please let me know how you would like to proceed. 

XX/XX/XXXX - Me : I did make XXXX 's payment yesterday. I would like to reapply for the Income Sensitive repayment plan. What are the qualifications for Administrative Forbearance? Thank You! 

XX/XX/XXXX - XXXX  : Thank you. I did receive a partial payment yesterday on the account. I have attached the Income Sensitive repayment worksheet. Please complete and send your last 30 days of pay stubs to process. 

XX/XX/XXXX - Me : I asked what my options were to catch back up on my loan payments as I was not working at the time. 

XX/XX/XXXX - XXXX : Thank you for your e-mail. We are currently servicing 3 private student loans, for you, in our office. All 3 of them are in default status. The total amount needed, to bring all 3 of them back to current, is {$1100.00}. Since your loans are defaulted, we do not have any non-payment options. We need to know what your plan is going to be to bring your loans current. Let me know so I can update your account. XXXX XXXX XX/XX/XXXX - Me : Thank you for the information. As soon as I am able to start making payments, I will. I don't know that I will have much of an income tax refund, but I can pay what I am able to, when I receive it. 

XX/XX/XXXX - XXXX : I will update your account. Since no payments are being made, your account will not be in a hold status. We will continue our collection efforts. Thank you. 

XX/XX/XXXX - Me : I have attached a picture of the Income Sensitive Repayment Worksheet and a copy of my child support payments that I receive. Please let me know if you would like me to mail the worksheet and/or copy of child support to you. Thank you! 

XX/XX/XXXX - XXXX ( new account manager ) : The 3 loans we are servicing in our office are in default status. The amount needed, as of today, to bring all 3 loans back to current is {$1300.00}. Once your loans are current, we could look at an income sensitive payment arrangement. Due to non-payment, your loans were forwarded to our attorney for review. You should have received correspondence from XXXX XXXX XXXX. How do you plan to make the past due payment today? Let me know so I can update your account and let our attorney know. Thank you. 

XX/XX/XXXX - Me : As you can see from the worksheet that was forwarded to you, I am not in a position to make the past due payment TODAY. I am not currently working, but am actively looking for work. If I was working, I would not be in this position. Thank you. 

XX/XX/XXXX - XXXX  : Thank you for your e-mail. Since your loan is in default, the only other program available to you is our rehabilitation program. Below is the information.

You can get a Rehabilitation Program Forbearance with these 3 payment plans below : Paying {$170.00} for 9 consecutive months Paying {$340.00} for 6 consecutive months Paying {$510.00} for 4 consecutive months You will continue to receive a late fee every month, along with being reported as 180 days past due to the credit bureaus until the forbearance is granted and it is the last business day of that month. Upon receipt of the last consecutive payment, you are responsible for contacting me to request a forbearance to bring your account up to date. I will also help you track it though. Once the forbearance is granted, the interest will be capitalized, your loan will be recalculated, you will owe us more money, and a new payment amount will be given. Once current, your account will remain in the Post Default Department for 12 months. Successful completion of on time payments made in those 12 months will result in your account being moved out of a post default status, opening up options not currently available to you, such as School Deferment, if you qualify. Let me know which option you choose. Thank you. 

***I started working again in XX/XX/XXXX. *** XX/XX/XXXX - Me : I received a letter from XXXX XXXX XXXX yesterday. I am finally working so I am in a better spot to make payments. What are my current options for repayment? Am I still able to choose the payment arrangements of {$170.00} for 9 consecutive months to be eligible for a Rehabilitation Program Forbearance? Thank you. 

XX/XX/XXXX - XXXX  : XXXX is currently out of the office and I am assisting him with his emails. Yes you still have the option for doing the full payment each month and once you have completed the 9th consecutive payment and signed a rehab form we would be able to process a rehab forbearance to bring your loans current. The other options would be : Paying {$340.00} per month and having the loans brought current after the 6th payment. 

Paying {$510.00} per month and having the loans brought current after the 4th payment. 
Let us know which option and when you will begin. Thank You. 

***After figuring out my budget, none of the above options are doable for me right now as my life situation changed and I am now responsible for my full rent amount + all utilities. *** XX/XX/XXXX - Me : Hi XXXX, I know you are trying to get a hold of me, but I just do not have the money to make the payments that you want me to make right now. Honestly, I can barely afford to buy food for my kids. I work full-time, but I am also a single mother. The most I can squeak out is $ XXXX/month. I just have no other options, absolutely nothing. My credit is shot. If you garnish my wages, my kids and I will be on the street. I just do not know what to do. Please help. Thanks. 

XX/XX/XXXX - XXXX : As your Account Manager, I want to make sure you are provided all the options to resolve your defaulted private student loan ( s ) with XXXX XXXX XXXX XXXX XXXX ( XXXX  ). We have told a credit bureau about a late payment, missed payment or other default on your account. This information may be reflected in your credit report. I have listed your loan ( s ) details below to aide in your decision making process. 


Past Due Balance : {$2400.00} Payoff Balance : {$16000.00} The following options are available to resolve your defaulted private student loan ( s ) : Option 1 : Pay the loan ( s ) in full through a reduced payoff. 
The full balance plus sums accruing is owed per the terms of your signed Promissory Note, but I can offer a reduced payoff for {$9900.00} and consider the loan ( s ) paid in full. 
The payment is due by XX/XX/XXXX, unless otherwise negotiated with me. 
There is a three-week waiting period before the account is considered paid in full to ensure the financial institution honors the payment. 
XXXX  is not obligated to renew this offer. 
Option 2 : Payment arrangements to pay the past due balance in full and continue with the required installments in order to repay your loan ( s ) according to the terms of your Promissory Note. 
Option 3 : Rehabilitation Program o The Rehabilitation Program requires a series of qualifying monthly payments to get you back on track. Once the required monthly payments and the forbearance agreement have been received, XXXX will grant a forbearance for the past due balance on your account. Upon completion of the forbearance, payments will need to continue in order to repay your loan XXXX XXXX ) according to the terms of your Promissory Note. 

o XXXX is able to offer t

hree ( 3 ) different rehabilitation payment options listed below and you only need to choose one. Option 1 : Nine ( 9 ) Month Rehabilitation = Nine ( 9 ) regular monthly installments at {$170.00} for nine ( 9 ) consecutive months. Option 2 : Six ( 6 ) Month Rehabilitation = Two ( 2 ) times the regular monthly installment at {$340.00} for six ( 6 ) consecutive months. Option 3 : Four ( 4 ) Month Rehabilitation = Three ( 3 ) times the regular monthly installment at {$510.00} for four ( 4 ) consecutive months. 

Successful completion of either payment arrangements or the Rehabilitation Program and a current account status for an additional twelve ( 12 ) consecutive months will reinstate your remaining repayment options as if you had not defaulted. 


XXXX may exercise our rights under the signed promissory note if satisfactory arrangements are not made. Consequences include, but are not limited to the following : Your loan ( s ) may be referred to our legal counsel. 
The delinquency will continue to be reported to the credit bureaus. Your credit report is used by businesses that have a permissible purpose to access your credit file for purposes of evaluating your finances and determining your rates. Such companies include creditors, lenders, insurers, landlords, courts, cell phone companies, utility companies, and employers. 
Further fees may be assessed. 
We are happy to present this opportunity to improve your situation, please contact me with any questions and to make arrangements. 

XX/XX/XXXX - Me : Hi XXXX, I really wish I could afford to at least pay the minimum payment, but I am not. I am currently looking for a 2nd job. My full-time job is cutting hours and I literally have no idea how I am even going to keep food on the table for my kids for the next month, or gas in my car, or even a roof over our heads. 
I just do not have any extra money at all right now. As soon as I am able to make payments, I will do so. Thank you for your time. 

XX/XX/XXXX - XXXX : Thank you for your e-mail. I will update your account. Since your loan is in default status, we do not have any non-payment options. Collection activities will continue on your account. If you have any questions please let me know. 

***I am able to pay $ XXXX/month right now, and hopefully pay off a good amount with my tax return. I will be able to pay more in the foreseeable future, but not at this time. I was never able to apply for the Administrative Forbearance which I do not feel is fair. XXXX Thank you!

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation