Consumer complaint received 2026-06-01 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: TX

Complaint narrative:
Between XXXX and XXXX, I took out XXXX private XXXX XXXX XXXX XXXX through Sallie Mae, all certified by the XXXX XXXX XXXX XXXX XXXX ( XXXX ), totaling {$88000.00} in approved loan amounts. As of XX/XX/XXXX, my total balance has grown to {$120000.00} an increase of over {$37000.00} before meaningful repayment even began. I am a first-generation college student. At the time these loans were originated, neither I nor my family members who assisted me had any prior knowledge of how student loans worked. We were never informed by Sallie Mae or XXXX that federal loans, grants, or other aid options should be exhausted before taking out private loans. Sallie Mae private loans were presented as the only available option. My federal loan records from the XXXX XXXX XXXX XXXX XXXX ( XXXX ) confirm that during the same years I was taking out high-interest private loans through Sallie Mae , I was simultaneously receiving federal Direct Loans at XXXX at significantly lower interest rates : XXXX : Federal loans at XXXX % while Sallie Mae approved {$17000.00} at XXXX % XXXX : Federal loans at XXXX % while Sallie Mae approved {$20000.00} at XXXX XXXX XXXXXXXX : Federal loans at XXXX % while Sallie Mae approved {$23000.00} at XXXX % At no point was I counseled to maximize my federal aid eligibility before accepting private loans, despite the significant difference in interest rates and borrower protections between the XXXX loan types. Throughout my enrollment at XXXX, I was assigned XXXX different advisors. This lack of consistent advising meant I received no cumulative guidance about my growing private loan debt, and each year I was effectively starting over with a new advisor with no knowledge of my full financial situation. Sallie Mae approved escalating private loan amounts every single year for XXXX consecutive years at the same school, with the same cosigner, despite my growing debt load : XXXX : {$12000.00} at XXXX % fixed XXXX : {$17000.00} at XXXX % variable XXXX : {$20000.00} at XXXX % fixed ( XXXX XXXX XXXX XXXX emergency grants were widely available ) XXXX : {$23000.00} at XXXX % fixed ( XXXX XXXX XXXX XXXX emergency grants were widely available ) XXXX : {$15000.00} at XXXX % fixed The interest rates worsened as my debt grew, with the final loan reaching XXXX % consistent with subprime lending practices. My current monthly interest across all XXXX loans is approximately {$960.00}, while my in-school deferment payments total only {$120.00} per month, meaning my balance grows by approximately {$840.00} every month despite making payments. I was never properly informed of the loan terms, the impact of interest capitalization during deferment, or the availability of lower-cost federal alternatives at any point of origination. I have since filed a federal XXXX XXXX to Repayment application against XXXX for the same period these loans were originated. I am requesting that the CFPB investigate Sallie Mae 's private loan origination and disclosure practices on these accounts, specifically whether adequate disclosures were provided to a first-generation borrower and whether federal aid options were properly presented before private loans were certified. Additionally, the degree I pursued at XXXX ( XXXX XXXX ) was represented by the school as leading to specific career outcomes. Upon graduation, I discovered that the degree alone does not qualify me for the positions I was told it would prepare me for, as additional licensing and certifications outside the degree are required. This misrepresentation of career outcomes is the basis of my active federal XXXX XXXX to Repayment application against XXXX. The private Sallie Mae loans were taken out specifically to fund this degree, meaning the financial harm from the school 's misrepresentation is directly tied to these private loan balances.

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