Consumer complaint received 2020-11-03
Company: SLM CORPORATION
State: NH
Product: Student loan
Sub-product: Private student loan
Issue: Dealing with your lender or servicer
Sub-issue: Don't agree with the fees charged

Complaint:
Regarding Complaint No. XXXX. 
On two occasions I co-signed student loans at Sallie Mae for my grand-daughter, XXXX XXXX XXXX, a student at XXXX College in XXXX XXXX, CT.. 

1. # XXXX for {$7000.00} at 8.875 % on XXXX XXXX, XXXX ( See Attachment C ) 2. # XXXX for {$26000.00}, at 12.375 % on XXXX XXXX, XXXX ( See Attachment D ) On the first loan, I found out about the approval through my grand-daughter and her mother. I do not recall hearing about the details of the second loan. I do not recall receiving ANY notification ( e-mail, regular mail, or otherwise ) directly from Sallie Mae. In conversation with a representative of Sallie Mae, I asked several times whether ANY notification was sent directly to me as co-signor. The only response was that XXXX was notified. The Sallie Mae Consumer Advocate, XXXX, continually advised me to file a fraud complaint against my granddaughter, due to the fact that I do not recall specifically signing and approving Sallie Mae 's acceptance and offer for either loan. 

Because of this, I was not aware that the interest rates were as high as they are. As a co-signor, Sallie Mae obtained my credit rating. ( See Attachment E ). As you can see the ratings are excellent, and would not call for the exceptionally high interest rates. 

Attachment F shows a flier indicating that their highest advertised rate for a fixed rate loan is 11.85 %, for a " preferred customer '' other fliers advertise as high as 12.35 % ) .1. Why did they charge me 0.525 % higher than advertised, and 2. If I am a " preferred customer '' why was I charged higher than the highest rate with an excellent credit rating? They advertise 5.25 % ( fixed rate ) for some " preferred customers '' and as low as 4.25 % to the general public!. If they seem to ignore the co-signor 's credit rating, how is any student supposed to earn the lower rate when in most cases the student is just out of high school with no time to build any credit rating? When XXXX 's mother called Sallie Mae, she was told by a representative that the co-signor 's credit rating does not carry much weight in the rate decision. All fliers I have received from Sallie Mae have stated. " Remember - cosigning for your student may help increase their chance for approval and may get them a better rate. '' That is obviously noy tue in this case. When I asked " XXXX '' in the Customer Advocates Office how rates were set, she told me that they use algorithms ( which Sallie Mae will not disclose ) to determine the rate. 

In conversations with representatives of Sallie Mae, I was asked why XXXX applied for a " Smart Option '' loan, rather than a " Parent Loan ''. The answer is very simple. 1. I am NOT the parent., and 2. The " Smart Option '' loan is the ONLY option available on line if you choose to have a co-signor. 

My letter of complaint to Sallie Mae is attached ; Attachment A. " XXXX '' the representative in the Customer Advocate Office indicated verbally to me that the answer would be that XXXX and I agreed to the rates charged, and there would not be any changes made. She said that a written response would be coming ; but has not yet been received. I asked her, " If we had agreed to 50 %, would they not change things? '' She indicated that 50 % would usurious and therefore illegal. To charge 8.876 %, and then increase to 12.375 %, may not be usurious, but under these circumstances must be considered wrong, unjustifiable and immoral at best. I would like to have Sallie Mae correct both rates. Sallie Mae 's written response is attached as Attachment G My lateness in submitting this complaint to you is due to the fact that I filed my original complaint to the Consumer Protection Bureau of the Attorney General of New Hampshire ' office on XX/XX/XXXX ; and their response to me ( Attachment H ) was dated on XX/XX/XXXX. That letter advised me to contact the New Hampshire Department of Banking ; which I found out has no jurisdiction over Sallie Mae. 

A fair resolution of this matter can be nothing short of a reasonable adjustment of the rates on each loan which reflect not only the facts as presented to them, but according to their own promises as reflected in their advertising.

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