Consumer complaint received 2025-08-27 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: KS

Complaint narrative:
Since the beginning of my settlement process with Sallie Mae on XXXX XX/XX/XXXX with my first request to review terms and conditions prior to scheduling payment on XXXX XX/XX/XXXX I have been denied each time. This was to settle a loan with a remaining balance of {$20000.00} as of XXXX XX/XX/XXXX. The same amount of which from when I started the process on XXXX XX/XX/XXXX. After initially offering {$8000.00} on XXXX XX/XX/XXXX ; Sallie Mae returned with a counter offer of {$11000.00} ( 55 % of the remaining value ). 

On XXXX XXXX again, I was in touch with another operator, where I asked for documentation. Where I stated that I was prepared to accept their counter offer and detailed that I needed a written statement confirming the amount of the settlement, once payment has been made the loan will be closed, and payment has been received and account close. I was told by this operator that XXXX will receive all of that information once the payment has been processed and applied to your account '. He further said XXXX only send the settlement agreement once it is agreed upon '. Despite the fact that I had agreed just above. 

I was then unavailable for the next few days, with my next contact being made on XXXX XX/XX/XXXX. At this point my financial position had changed and I offered a re-counter to {$9300.00}. and detailed and re-affirmed that I need to see terms and conditions prior to scheduling payment. After which, this operator stated that the original settlement offer ( see beginning ) had been 'approved '. I was then told that 'this settlement has been finalised by management. Then after yet again after saying I need to see the terms, I was informed 'after we schedule payment, we provide terms to you, via chat, for you to agree to. After you agree, we will also send the terms to you for your records. ' Further on during this conversation XX/XX/XXXX, I once again requested a written agreement to be provided to me via email within XXXX hours from my last communication. This has not been fulfilled. This was to detail the full terms and conditions for my review ; the settled amount, payment terms, and confirmation that debt will be considered paid in full. I have now included a stipulation requiring confirmation of how the account will be reported to credit agencies and bureaus. All of which to be provided prior to scheduling payment by email and then physical letter. I was informed by the XXXX ' operator, again on XX/XX/XXXX, that this would not be possible to provide prior to scheduling payment. However, that I could call Sallie Mae and have them read the terms and conditions to me, and that I would receive the full terms and conditions after the debt had been settled and paid. 

According to the same chat operator, XXXX ( Sallie Mae ) can not send over the terms until after you agree and schedule the payment as this is included in the terms that you agree and the payment arranged. I was told the same thing by a different operator on XX/XX/XXXX. 

From here, I was told that no terms will be sent as no plan is in place to provide terms. This has since been directly contradicted by the below message from a different chat operator. 

On XXXX XX/XX/XXXX ; I again initiated a chat with yet another operator. To which I sent a detailed message that you will find at the end here ( unedited ). I will quote directly from the saved transcript - typos and all : I was told by this operator that 'There is no way to send the paper work for the settlement, before making the payment for the settlement. The paper work takes some time to send, usually up to XXXX business days '. To which I responded : If Sallie Mae is refusing to provide the terms and conditions that I outlined then I will have no option but to report this to the CFPB '. The operator responded with : 'nothing has change form the last time. You need to set up payment, then the paper work will get sent out to you. To which I responded that I am entitled to the right to read the full terms and conditions of the settlement and all allotted legal documents prior to scheduling payment. In response, the operator said " I understand, but our system would not be able to generate that paper work until the program is set up with the payment. 

At each point starting from XXXX XXXX to XXXX XX/XX/XXXX- across XXXX separate chats I had with Sallie Mae, I was willing to work with them to come to a settled agreement. I was then run about and refused to be given terms and conditions, lied to, and told at first that it was impossible, and then second that it would take XXXX business days. Again, at each point I remained consistent in wanting to review the terms and conditions in detail, and fully denied. It is made all the more atrocious by the fact that you can not discuss this with them via email. As Sallie Mae has no email address. So you are limited to talking to chat operators or on the phone. 

Hello, I am going to try and be as cordial as possible in my message. First referencing a conversation, I had with XXXX XXXX yesterday ( XX/XX/XXXX ) about my settlement offer with Sallie Mae. Second, her response to my terms. Third, my responses to this practice. And finally, what next steps are to be taken. 

To begin : Since the beginning of my settlement process on XX/XX/XXXX for loan number XXXX ; with my first request to review terms and conditions prior to scheduling payment on XX/XX/XXXX I have been denied each time. 
Yesterday, on XX/XX/XXXX, I once again requested a written agreement to be provided to me via email within XXXX hours from my last communication. This has not been fulfilled. This was to detail the full terms and conditions for my review ; the settled amount, payment terms, and confirmation that debt will be considered paid in full. I will also now include a stipulation requiring confirmation of how the account will be reported to credit agencies and bureaus. All of which to be provided prior to scheduling payment by email and then physical letter. I was informed by XXXX, again on XX/XX/XXXX, that this would not be possible to provide prior to scheduling payment. However, that I could call Sallie Mae and have them read the terms and conditions to me, and that I would receive the full terms and conditions after the debt had been settled and paid. 

According to her, We ( Sallie Mae ) can not send over the terms until after you agree and schedule the payment as this is included in the terms that you agree and the payment arranged. I was told the same thing by an operator by the name of XXXX, on XX/XX/XXXX. To my understanding, this is Sallie Mae saying, we want to have your commitment before we put anything in writing. Because once I do, XXXX XXXX have control over the terms. I must question the nature of this practice and move forward under the assumption of an intentional deceptive practice. As how can I know that this stipulation is in the terms, without reviewing them myself? 

Upon these stated facts, I must therefore assume that XXXX ) Sallie Mae has the terms and conditions available. XXXX ) Sallie Mae is actively and knowingly positioning people such as myself to potential significant financial and legal risk. XXXX ) That I am being coerced into an agreement before I have time to consult financial/legal advice. XXXX ) To avoid creating a legally binding settlement offer without commitment. XXXX ) Sallie Mae is leaving me, the consumer, at risk of paying without a clear and enforceable agreement. XXXX ) Withholding written terms in advance to deny me legal proof of what Sallie Mae agreed to. XXXX ) Wilfully withholding documentation so that Sallie Mae or a debt collection agency could in the future claim the payment was a lump sum towards the balance on the loan ; not an agreed settlement. XXXX ) Therefore, Sallie Mae could change the terms before the letter is sent. XXXX ) Sallie Mae is keeping their option open to withdrawing or altering the offer without clear recourse. 

As Sallie Mae has continually refused to provide these terms, I will outline next steps. XXXX ) I require pre-payment documentation including terms and conditions as well as all the above stated information by XXXX EST XXXX XX/XX/XXXX. XXXX ) As a consumer, I am entitled to make fully informed financial decisions. Refusing to provide written documentation of the settlement terms prior to payment XXXX constitute as a deceptive practice under the Consumer Financial Protection Act of XXXX ( XXXX XXXX XXXX XXXX XXXX XXXX  ) : Section XXXX XXXX. / XXXX. XXXX ) To reiterate ; requiring me, the consumer, to schedule and/or authorise a payment without first receiving full and accurate documentation of the agreement, by its nature, allows opportunity for myself to be misled regarding the nature of the payment or its consequences. Particularly if Sallie Mae changes the terms so that the payment does not, in fact, settle the account in full. XXXX ) To which end, I would be required to submit a formal complaint to the Consumer Financial Protection Bureau. 

To confirm, in the event that this loan defaults ( loan number XXXX ) and Sallie Mae decides to file a claim to recover the sum total, I have written records to prove that I have attempted to settle the debt with Sallie Mae to the amount of {$11000.00} which is 55 % of the current remaining balance as of XXXX XX/XX/XXXX, with the process beginning on XXXX XX/XX/XXXX. I would at that point deem it appropriate to seek legal counsel in accordance with applicable laws. 

I will not be responding to any questions and expect Sallie Mae to respond accordingly within the allotted time previously stated XXXX EST XXXX XX/XX/XXXX.

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