Consumer complaint received 2026-03-02 00:00:00
Product: Debt collection — Private student loan debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: SLM CORPORATION
State: TX

Complaint narrative:
Complaint Regarding Repeated Interest Capitalization and Loan Servicing Practices Sallie Mae Private Student Loans I am filing this complaint regarding the servicing practices applied to my private student loans serviced by Sallie Mae. After reviewing my account history, I discovered repeated and substantial capitalization of interest across all of my loans over multiple years, despite my making regular payments in good faith under the belief that my payments were addressing accrued interest. My loans include the following loan IDs : Loan # XXXX Loan # XXXX Loan # XXXX Loan # XXXX Loan # XXXX Account records show numerous capitalization events occurring repeatedly between approximately XXXX and XXXX across all loans. These capitalization events frequently occurred on similar dates across multiple loans and added significant unpaid interest directly into principal balances. Examples include ( but are not limited to ) : Loan # XXXX : Capitalizations including {$7200.00} ( XX/XX/XXXX ), {$5500.00} ( XX/XX/XXXX ), {$940.00} ( XX/XX/XXXX ), and {$8100.00} ( XX/XX/XXXX ). Loan # XXXX : Capitalizations including {$7000.00} ( XX/XX/XXXX ), {$5000.00} ( XX/XX/XXXX ), {$1000.00} ( XX/XX/XXXX ), and {$7400.00} ( XX/XX/XXXX ). Loan # XXXX : Capitalizations including {$4600.00} ( XX/XX/XXXX ), {$3900.00} ( XX/XX/XXXX ), {$3400.00} ( XX/XX/XXXX ), and {$6600.00} ( XX/XX/XXXX ). Loan # XXXX : Capitalizations including {$2100.00} ( XX/XX/XXXX ), {$2200.00} ( XX/XX/XXXX ), {$1800.00} ( XX/XX/XXXX ), and {$3600.00} ( XX/XX/XXXX ). Loan # XXXX : Capitalizations including {$3100.00} ( XX/XX/XXXX ), {$4100.00} ( XX/XX/XXXX ), {$3100.00} ( XX/XX/XXXX ), and {$6400.00} ( XX/XX/XXXX ). Throughout repayment, I made consistent payments, including monthly payments intended to cover accrued interest. However, I was not clearly informed that my payments were insufficient to prevent balance growth or that unpaid interest was accumulating and would later be capitalized into principal. As a result, my loan balances increased substantially over time despite ongoing payments. The repeated capitalization events indicate a pattern of negative amortization that was not clearly or transparently disclosed to me as a borrower. My concerns are as follows : I was not provided clear, understandable disclosure that my payments would allow balances to grow through negative amortization. Capitalization events occurred repeatedly without adequate explanation of the triggering conditions. Payments were accepted without transparent notice that they were not covering accruing interest. I did not receive clear advance notice explaining when capitalization would occur or how significantly it would increase my principal balances. The pattern of capitalization across multiple loans suggests systemic servicing practices rather than isolated events. I respectfully request : Identification of the contractual trigger for each capitalization event across all loans. Copies of all notices or disclosures sent prior to each capitalization event. A consolidated accounting showing how each payment was applied across all loans relative to accruing interest. An explanation of when and how negative amortization was disclosed to me. A full review of my account for potential correction, adjustment, or remediation due to inadequate servicing transparency. I made payments in good faith believing they were preventing significant balance growth. I am requesting regulatory review to determine whether these servicing practices were fair, transparent, and compliant with borrower disclosure standards. Thank you for your review.

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