Consumer complaint received 2026-03-02 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: SLM CORPORATION
State: PA

Complaint narrative:
am filing a complaint about two Sallie Mae Smart Option Student Loans that I signed when I had just graduated high school. These loans were only for about a year and a half of college, yet the total repayment amount has grown to more than {$120000.00} on only {$33000.00} borrowed. The interest rates Sallie Mae approved for me were extremely high for a brand new high school graduate with no credit history, no assets, and no realistic ability to repay. One loan carries a fixed interest rate of 14.000 % and the other 15.530 %, with finance charges of more than {$35000.00} and {$60000.00} respectively. These loans were approved with no financial feasibility to manage debt of this size. After leaving school, I was granted a six month forbearance. When that ended, I still could not afford the payments because the interest alone is extremely high. I am employed now, but my income is not enough to cover even the interest only payments Sallie Mae expects, let alone the full payments. When the forbearance expired, I attempted to request an extension or hardship assistance through the live chat option that Sallie Mae provides. Instead of helping me, the chat representatives repeatedly ended the conversation while I was still asking questions or trying to explain my situation. This has happened multiple times. I also attempted to call the escalation department directly, because the live chat representatives told me that escalation was the only way to request additional help. I waited on hold for about fifteen minutes, and then the call was disconnected without anyone speaking to me. I sent a digital letter requesting extension of the forbearance through an online portal which Sallie Mae lice chat agents directed to me to use, instead of responding through these digital channels, Sallie Mae mailed me a physical letter telling me to look into other options. This delayed response caused more interest to accrue and did not address the request I made. It feels like Sallie Mae is intentionally making it difficult to access hardship options or even speak to someone who can help, which results in the balance growing larger while I am actively trying to resolve the situation. There are also inconsistencies in the disclosures for the 2024 loan. The approval disclosure lists a finance charge of {$47000.00}, while the final disclosure lists a finance charge of {$60000.00}. These numbers do not match, and I was never given an explanation for the difference. I believe this violates the requirement for accurate and consistent Truth in Lending disclosures. I feel the terms of these loans were predatory given my age and situation at the time. The true long term financial impact was not laid out in a way that could be reasonably understood. Based on my experience and what I now know about Sallie Maes past legal issues involving similar practices, I believe I was placed into extremely high cost debt without a fair understanding of what I was agreeing to. Im trying to repay these loans, but the terms are unreasonable and the servicer has made it extremely difficult to get any assistance. The interest accrues rapidly during deferment and forbearance, and the interest only payment option is still unaffordable. The communication issues with Sallie Mae have made the situation worse. I have been hung up on, disconnected from chat, and forced into delayed communication through physical mail instead of the digital channels I used. I am asking the CFPB to review Sallie Maes lending and servicing practices in my case, including the interest rates, the inconsistent disclosures, the handling of my hardship requests, and the way my attempts to communicate have been ignored or cut off. I am requesting any relief or correction the CFPB finds appropriate.

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