Complaint / review text:
I took out a Sallie Mae loan for my son, back in 2006. I made the payments on it, until he graduated from college, of which he set up direct deposit to pay on the loan. By doing this, he received a 0.25% less on the loan (6.375 - 6.125). After 36 consecutive payments, a 1% discount is made off the loan, lowering the rate to 5.125%. My son was making the payments religiously. Last year, I went back to college to get my MBA, paying cash, and Sallie Mae gets a notice from my college (they have to do this by law), and puts this loan on deferment. My son was not aware, because he has everything set up on auto-pay.
Once we realized this, we called Sallie Mae, and asked them to stop the deferment.in the meantime, Sallie Mae had accrued over $2,000 in capitalized interest. We were sick. Here, my son was paying on it, and they stopped taking the payments out of his account.in January, I called and told them to stop the deferment. They did with the 1st payment in February, and by March, they had put it into deferment again. When I called to tell them that I do not want this loan in deferment, and do not put it into deferment, unless I personally ask them, or put it in writing. I also stated that I wanted something from them in writing, to stop the deferment, and state that they would not put this loan into deferment again, unless I request it.
I got a letter, and it stopped the deferment but in big caps the letter states, "Sallie Mae reserves the right to modify or discontinue loan programs at any time, without notice". I was furious. Back in Aug 2009, our outstanding balance was $38,371.43. Now it is $39,943.88, of which Sallie Mae has earned $2,584.18 of capitalized interest, by them deferring my loan, anytime they want. I am still in school, and my school has to inform them each quarter by law.
Sallie Mae automatically puts it in deferment, and I can not say, write, or do anything to stop them, and Sallie Mae, instead of helping those to pay them back, are hurting us by charging more interest, without permission. This is not fair at all. It stopped our consecutive payments, so now there are 19 more payments to make to get the extra 1% off. Sallie Mae accrued $2,584.18 of capitalized interest. This is not fair at all. Please help.