Consumer complaint received 2026-01-22 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Trouble with how payments are being handled
Company: SLM CORPORATION
State: NJ

Complaint narrative:
I am submitting this complaint regarding Sallie Maes servicing of my student loan account and its repeated miscalculation and overcharging of my variable interest rate, in violation of the promissory note and applicable consumer protection obligations. 



1. XXXX XXXX ( Since XXXX ) My loan agreement states that my variable interest rate is calculated using the one-month XXXX index plus a fixed margin of 9.375 %, with the index rounded up to the nearest one-eighth of one percent ( 0.125 % ), before the margin is applied. The contract explicitly states : I will pay interest at a Variable Rate equal to the Index, rounded up to the nearest one-eighth of one percent ( 0.125 % ), plus or minus the percentage identified on my Disclosure ( the Margin ). 

Despite this clear contractual requirement, Sallie Mae has consistently overcharged my interest rate for numerous months, including but not limited to the examples below. These overcharges have occurred every couple of months since XXXX and continue to the present, affecting my balance and monthly payments. The examples provided here represent only a small portion of the total overcharges over the last four years. 



2. Documented Examples of Overcharging ( XX/XX/XXXX XXXX XXXX ) Month XXXX ( % ) Rounded Index ( % ) Contractual Rate ( % ) Actual Charged ( % ) Overcharge ( % ) XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Example Calculation XX/XX/XXXX : Published XXXX XXXX : 4.32689 % Rounded UP to nearest 0.125 % : 4.375 % Margin : +9.375 % Contractual Rate : 13.750 % Actual Charged by Sallie Mae XXXX 13.875 % Overcharge : 0.125 % Note : Even if rounding were applied after adding the margin, the resulting rates would not change. This confirms that the overcharges can not be explained by rounding order ; Sallie Mae consistently charged rates above the contractual maximum. 



3. XXXX Cessation Issues Since XXXX is no longer published, Sallie Mae has failed to provide : 1. The replacement index being used 2. The methodology or scale used to calculate my variable interest rate 3. Any transparent breakdown of how my rate is derived 4. Evidence that the replacement index and any spread adjustment comply with the promissory note Despite multiple billing cycles since XXXX cessation, Sallie Mae continues to charge variable interest rates without adequate disclosure or explanation, preventing me from verifying whether the rates are accurate or contractually valid. 



4. Consumer Harm Due to Breach of Contract As a direct result of Sallie Maes breach of contract by overcharging my interest rate, I have suffered significant financial and personal harm, including but not limited to : Excess interest paid due to the lender charging above the contractual rate ( principal + overcharge ) Compound interest effects caused by repeated overcharging over multiple months and years Late fees or penalties that resulted from inflated balances Other financial damages caused by the breach, including higher required payments and extra interest over time Additionally, the overcharges have caused : Credit report impact : A misreported late payment ( XX/XX/XXXX ) resulting directly from the inflated balance Harm to my credit score and borrowing ability Financial consequences such as higher interest on other loans and potential credit denials The right to dispute and remove the late payment, as it was caused by an inaccurate balance and therefore not valid Co-signer implications : If applicable, my co-signer has also been negatively impacted by the misreported payment Sallie Mae may be liable for damages caused to co-signers as a result of the breach These harms are directly caused by Sallie Maes failure to follow the contractual formula for my variable interest rate, repeated over time, and compounded by the lack of transparency following XXXX cessation. 



5. Precedent : Sallie Mae Regulatory Settlement In XXXX, Sallie Mae ( and Navient ) settled with the U.S. Department of Justice and the FDIC after overcharging military servicemembers in violation of the Servicemembers Civil Relief Act ( SCRA ). As part of that settlement : Borrowers received direct financial compensation and restitution for excess interest paid. 
Credit reporting errors caused by the overcharges were corrected, including removal of late payments. 
The settlement did not cancel or forgive l ensured borrowers were made whole for financial harm. 

This demonstrates that regulators have previously required Sallie Mae to refund overcharged interest, correct credit reporting, and provide restitution and compensation when the company violated contractual or legal obligations. I am therefore requesting similar remedies for the overcharges, credit harm, and co-signer impact in my case. 



6. Estimated Damages Based on the documented overcharges from XX/XX/XXXX through XX/XX/XXXX, and considering that similar overcharging has occurred every couple of months since XXXX and continues to the present, I have incurred significant financial damages : Excess interest : Even small overcharges of 0.125 % per month on my principal balance have resulted in hundreds to thousands of dollars of unnecessary interest payments over time. 
Compound interest effects : Repeated overcharges have compounded, further inflating my loan balance and payments. 
Credit-related damages : The misreported late payment in XX/XX/XXXX, caused directly by the inflated balance, has harmed my credit score, resulting in higher borrowing costs and denied credit opportunities. 
Co-signer impact : My co-signer on the loan has also been negatively affected by misreported payments and inflated balances. 

I am therefore seeking full restitution of all overcharged interest, the resulting compound interest, and additional financial compensation for the harm caused to my credit and any co-signers, in addition to correction of my loan balance and removal of inaccurate credit reporting.

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with non-monetary relief