Consumer complaint received 2018-07-17
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: SLM CORPORATION (TN)

I have a private student loan through XXXX XXXX. The total amount received each semester reflects both the amount of tuition plus the amount that is estimated to be the total living expenses for a semester. The funds are directly distributed to my school, XXXX XXXX University XXXX XXXX XXXX ( based out of XXXX, TX ), who is supposed to apply the funds towards tuition and then distribute the remaining balance to me ( since after all it is MY loan and I'm paying interest on it ). This is the second semester in a row that the school has kept my funds. Last semester, XXXX XXXX distributed the amount of {$12000.00} to XXXX XXXX University on XX/XX/XXXX. A credit of {$4800.00} was supposed to be disbursed to me for living expenses for the semester. Instead, I didn't get my disbursement until XX/XX/XXXX, leaving me with no money to live off of for the entire semester. I realize this is a problem with the school and not necessarily XXXX XXXX, but I believe XXXX XXXX should hold the school accountable for making sure students get their money in a timely manner. I called XXXX XXXX on two different occasions, and both times a customer service representative told me that once the funds are in the school 's possession, what happens to them is out of their hands. I don't understand how that could be possible as the loan is in my name and I'm the one making interest payments on it. If that were the case, what's stopping the school from keeping my money indefinitely? I believe that the school is using students ' funds to either make interest by keeping the money in their private bank account for an entire semester, or they're using the funds improperly in some other way. It's a very small school and in no way should it take 4 months to distribute these funds. It happens to multiple students every semester. XXXX XXXX disbursed my funds for this semester to the school at the end of XX/XX/XXXX, and now in the middle of XXXX I, once again, am without funds to pay rent or bills ( which is ridiculous because I'm still paying interest on loan money that is not even in my possession ). When I reach out to the school or to XXXX XXXX they are of absolutely no help, and I believe that XXXX XXXX doesn't care at all that the school is taking advantage of us. I believe that XXXX XXXX should be held to a higher standard than what they currently are. The school should be required to distribute the funds in a timely manner. 

This is a complaint that I've filed previously. XXXX XXXX responded and stated that they contacted XXXX XXXX XXXX XXXX and they responded stating that they disbursed the funds on XX/XX/XXXX. This is a downright LIE. They did not disburse my funds to me until XX/XX/XXXX. My bank statements are attached to prove it. How can you possibly let them do this to students? All it's doing is hurting us, and this fraudulent activity on their part is going to cause the school to shut down and therefore cause XXXX XXXX to lose customers. This is horrible business and everyone involved should be ashamed. I didn't respond to the company 's response sooner because I received no notification that the complaint had been processed. Original complaint # : XXXX