Consumer complaint received 2024-10-23 00:00:00
Product: Student loan — Private student loan
Issue: Struggling to repay your loan — Problem lowering your monthly payments
Company: SLM CORPORATION
State: MD

Complaint narrative:
I am filing this complaint against Sallie Mae for predatory lending practices, improper loan servicing, and unethical behavior by their third-party collection agency, XXXX XXXX XXXX XXXX I borrowed {$20000.00} in private student loans during my XXXX program at the University of Maryland XXXX XXXX ( XXXX ). Due to excessively high interest rates and Sallie Maes refusal to offer affordable repayment options, my loan balance has ballooned to over {$45000.00}. Sallie Maes unethical practices, including unauthorized disclosures of my personal financial information, have further escalated the situation. 

Key Points of Complaint : XXXX. XXXX XXXX and XXXX XXXX : My initial loan balance was {$20000.00}, but Sallie Maes high interest rates ( 14 % ) have caused it to grow to over {$45000.00}. Despite my efforts to make payments, the companys refusal to provide income-driven repayment options or adjust my payment schedule led to my default in XX/XX/XXXX. 
XXXX. Unaffordable Payment Demands and Default : After experiencing layoffs in both XXXX and XXXX, I could no longer afford the increasing monthly payments, which XXXX to nearly {$6000.00}. Sallie Mae and their collection agency, XXXX XXXX XXXX, continue to demand full repayment of over {$45000.00} within 12 months. This is the same payment amount that led to my default in the first place. They also threaten legal action and wage garnishment, exacerbating my financial stress. 
XXXX. Misrepresentation of Interest Accrual During Forbearance : When I requested forbearance due to financial hardship, I was informed by Sallie Mae that interest would not continue to accrue after the loans were charged off. However, interest continued to accrue, adding significantly to my debt. 
XXXX. Improper Disclosure of Personal Information to a Third Party : XXXX XXXX XXXX, acting on behalf of Sallie Mae, violated my privacy by contacting my mother, who is not listed on the loan or any financial agreements, and disclosing sensitive financial information, including my routing and checking numbers. This has caused significant tension in my household. 
When I confronted them, they stated that they would do whatever it takes to contact me and blamed my mother for answering the phone. This is a clear violation of consumer privacy and unethical conduct by the third-party collection agency. 
XXXX. Threats of Legal Action and Wage Garnishment : XXXX XXXX XXXX has continuously threatened legal action and wage garnishment if I do not comply with their demands to pay the settlement amount in full within 12 months, despite my clear inability to afford such payments. 

I am requesting that the CFPB investigate Sallie Mae and their collection agencys predatory and unethical practices. I am seeking relief in the form of affordable repayment options and an end to the inappropriate actions by their collection agency, XXXX XXXX XXXX.

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