Consumer complaint received 2026-04-09 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: DE

Complaint narrative:
In XX/XX/XXXX, I received a phone call from my loan lender stating that my student loans were nearing repayment status and that my monthly payments would increase. I informed the representative that I was still in my fifth year of college and was assured that my payments would not change. I received no additional phone calls or emails between XX/XX/XXXX and XX/XX/XXXX regarding any change to my loan repayment terms. On XX/XX/XXXX, I received an email stating that my student loan payments were increasing, without advance notice. At that time, I did not fully understand the total balance of my loans, as I had been led to believe by a family member that the loans were being managed and paid. During this period, I took over full financial responsibility for these loans and have remained prompt and diligent with all required payments. As I began managing the loans independently, I reasonably relied on information provided directly by representatives of the loan lender when making significant financial decisions. On XX/XX/XXXX, I made a large payment of approximately {$39000.00} toward my student loans. Before making this payment, I spoke with a loan lender representative who explained that once XXXX loan was paid off, my remaining loans would be eligible for reamortization. During this same call, the representative explicitly stated that my loans would be automatically reamortized as a result of this payment and that the new payment amount would be reflected within approximately XXXX days. I was instructed to call back only if I did not see the change. The reamortization did not occur. On XX/XX/XXXX, I contacted the loan lender to follow up. I was informed that the previous representative had provided incorrect information, but I was told that reamortization could still be processed upon request and that it would reduce my monthly payment. I specifically asked when the change would take effect and was told to make my normal XXXX payment, with the new payment reflecting in XX/XX/XXXX. As of the XX/XX/XXXX billing cycle, no reamortization had occurred, and my monthly payment remained unchanged. I made multiple attempts to resolve this issue : On XX/XX/XXXX, I was told the loan lender could not reamortize my loans because I had only paid off XXXX loan, and that payments across all XXXX loans were required, a criterion that had never previously been disclosed. I requested that a formal case be opened, that prior calls be reviewed, and that corrective adjustments be applied. A case number was issued. On XX/XX/XXXX, my case was escalated due to no response. On XX/XX/XXXX and XX/XX/XXXX, I followed up again and received no update. On XX/XX/XXXX, A manager confirmed that call reviews showed representatives had provided incorrect information. I was offered a reduced payment but was not informed that doing so would significantly increase the total interest accrued. This material information was disclosed only after I questioned it directly. The manager also stated that the loan lender does not reamortize student loans at all, contradicting previous representations. I also requested access to call recordings and was informed that they could only be obtained through a subpoena. As a result of this situation, I have experienced significant financial burden and mental distress. I took over full financial responsibility for these loans in good faith and have remained current and prompt on my payments. However, I made a {$39000.00} payment in reliance on explicit representations that my loans would be reamortized and that my monthly payment would decrease. Instead, I have faced prolonged uncertainty, repeated misinformation, ongoing higher monthly payments, and continued interest accrual. This has materially impacted my ability to responsibly manage my finances and move forward with my life, including delaying my ability to refinance and achieve financial stability. I can not reasonably continue absorbing financial harm caused by inaccurate information while remaining compliant with my repayment obligations.

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with explanation