Consumer complaint received 2026-04-09 00:00:00
Product: Student loan — Private student loan
Issue: Getting a loan — High pressure sales tactics or recruiting
Company: SLM CORPORATION
State: CA

Complaint narrative:
I am submitting this complaint regarding a private student loan issued by Sallie Mae, which I believe involved unfair and deceptive lending practices, compounded by a lack of adequate guidance during my college enrollment process. I am a first-generation college student from a single-parent household. Neither my parent nor I had any prior experience navigating higher education financing. Throughout early XXXX, after applying to the XXXX XXXX XXXX, I made repeated attempts to contact the universitys financial aid office to understand my options for scholarships, grants, or other financial assistance. Despite multiple calls, I was unable to obtain clear or actionable information and was frequently redirected without meaningful support. It was not until I attended in-person orientation ( after incurring travel expenses we could not afford ) that I was informed that my full out-of-state tuition balance would be due and that I had not qualified for institutional financial aid. At that point, I was told that my only remaining option to attend was to take out private student loans. This created a situation of significant stress, pressure and urgency, as I had already committed time, money, and effort toward attending the university. Under these circumstances, I applied for and was immediately approved for a large private loan through Sallie Mae, despite having limited financial experience and no meaningful understanding of complex loan terms. I reasonably relied on the assumption that such a loan would be structured in a way that was manageable and appropriate for a student borrower. Critically, I did not understand nor was it clearly explained to me in a way I could reasonably comprehend, that the loan was structured in a manner that would result in negative amortization. I believed that my required monthly payments of {$25.00} would at least cover accruing interest or reduce my balance. Instead, the loan allowed substantial unpaid interest to accrue and capitalize over time. As disclosed in the loan documents, more than {$19000.00} in unpaid interest was expected to accrue during the initial repayment period alone. As a result, despite making all required payments on time and never missing a payment, my loan balance has increased significantly from approximately {$41000.00} to nearly {$60000.00}. While I am still enrolled in school. Additionally, the loan carries a high, variable interest rate ( over 11 % at origination, with the potential to rise substantially ), further exacerbating the financial burden. The structure and terms of this loan were not adequately explained in a way that accounted for my lack of financial sophistication as a first-generation student borrower. Due to the financial strain and the realization that I would need to take out similarly large private loans for each remaining year of my education, I was ultimately forced to transfer to a different institution. Continuing at the XXXX XXXX XXXX would have required me to incur an unsustainable level of debt over multiple years. This decision significantly altered my educational path and was not based on academic preference, but rather on the financial hardship and risk created by the loan structure and lack of adequate guidance. I believe this loan was issued without proper consideration of my ability to repay and was structured in a way that is inherently harmful to borrowers, particularly those in vulnerable or inexperienced positions. I further believe that the combination of inadequate institutional guidance and the lenders approval of a high-risk loan contributed to my current financial hardship. I am requesting that this loan be reviewed for potential relief, including but not limited to interest reduction, balance adjustment, or discharge, based on unfair, deceptive, or predatory lending practices. I am prepared to provide supporting documentation, including the loan disclosure showing the accrual of unpaid interest and the resulting increase in loan balance despite consistent, on-time payments.

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