Consumer complaint received 2026-06-24 00:00:00
Product: Student loan — Private student loan
Issue: Struggling to repay your loan — Can't get other flexible options for repaying your loan
Company: SLM CORPORATION
State: OH

Complaint narrative:
Subject : Complaint Regarding Sallie Mae Private Student Loan Servicing Practices, Interest Capitalization, and Hardship Program Handling I am filing a complaint regarding Sallie Maes servicing of my private student loans. Despite paying {$30000.00} toward these loans and making every payment on time since XX/XX/XXXX, my current balance remains {$53000.00}, which is higher than the original amount disbursed ( {$42000.00} ). I believe Sallie Maes servicing practicesincluding extremely high variable interest rates, repeated interest capitalization, negative amortization, and hardship programs that increased my total repayment costhave prevented me from making meaningful progress on my debt despite consistent goodfaith payments and repeated attempts to obtain assistance. I am requesting a full review of my account history, including interest accrual, fees, capitalization events, hardship program terms, payment application, and credit reporting. -- - 1. My balance increased despite substantial repayment Sallie Maes records show : Original amount disbursed : {$42000.00} Total payments made : {$30000.00} Current balance : {$53000.00} Even after paying more than {$30000.00} and maintaining ontime payments since XX/XX/XXXX, my balance is still significantly higher than the original principal. I am requesting an explanation and accounting of how my payments were applied and how my balance reached this amount. -- - 2. High variable interest rates caused negative amortization Before Sallie Mae placed me into a temporary XXXX % hardship plan, my loans carried interest rates as high as : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX At these rates, my payments were insufficient to cover accruing interest. For example, my XX/XX/XXXX statement shows {$630.00} in interest and fees, while my payment was {$370.00}, causing my balance to increase despite making a payment. This occurred repeatedly and prevented meaningful principal reduction. -- - 3. Sallie Mae reported delinquency while I was actively seeking assistance In late XXXX and early XXXX, I contacted Sallie Mae multiple times seeking repayment assistance. During this period, I received delinquency notices, late fees, and negative credit reporting. My XX/XX/XXXX statement showed : Past due amount : {$820.00} Total amount due : {$1600.00} This occurred while I was actively attempting to obtain assistance and before Sallie Mae provided a workable hardship option. -- - 4. Sallie Mae denied assistance in XXXX, then approved a modification in XXXX without explanation On XX/XX/XXXX, Sallie Mae denied my modification request, stating : Income sufficient in relation to the loans principal and interest payment amount. However, in XX/XX/XXXX, Sallie Mae offered me a Term and Rate Modification Program. I was not provided with an explanation for why my circumstances were considered insufficient for assistance in XXXX but eligible for modification in XXXX. -- - 5. The hardship program increased my total repayment cost The hardship plan letter dated XX/XX/XXXX stated : The loan term will also be extended to the maximum available, which will increase your Total Loan Cost. The confirmation letter dated XX/XX/XXXX stated : Your loan term was also extended to the maximum months available, XXXX months. This extended repayment to XXXX years, increased total repayment costs, and involved interest capitalization. The program also affected my cosigner release eligibility and restricted access to other repayment options for XXXX months. -- - 6. The hardship program did not resolve the underlying issue Even after the reduced XXXX % interest rate was applied, my balance remained extremely high. My XX/XX/XXXX statement showed a balance of {$57000.00}, with interest still accruing and only limited principal reduction occurring. -- - 7. My cosigner has been negatively affected My mother is my cosigner. Sallie Maes policies regarding hardship programs have prevented her from being released from the loan despite years of payments. The inability to obtain cosigner release has created a continuing burden for her despite my consistent repayment efforts. -- - Why I believe this servicing was unfair My balance increased or remained nearly unchanged despite paying over {$30000.00}. High variable interest rates and capitalization prevented meaningful principal reduction. The hardship program increased my total loan cost. I was denied assistance in XXXX but approved later without explanation. Delinquency and credit reporting occurred while I was actively seeking assistance. My cosigner has been harmed by Sallie Maes servicing policies.

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