Student Loan Harassment

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ZGundam
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Student Loan Harassment

Post by ZGundam »

I'm a little late on my student loan from Sallie Mae. I got a call and told them that I am making the payment on the 19th. I am only 9 days pass due for one payment.

I was told that even though that was placed in my account, they are allowed to call me every day until I make the payment.

Isn't that harassment? I am trying to see where I can get them to stop. But hey, its just me against a large financial institution, right? Like something saying I agreed them to calling me till I pay.
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Re: Student Loan Harassment

Post by Flagg »

I hate to be a dick here, because I do sympathize with you, but you need to grow up. If you owe someone money they have every right to contact you until it's paid. Once a day is nothing. Especially if you have caller ID.
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Broomstick
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Re: Student Loan Harassment

Post by Broomstick »

I agree. So long as they call within reasonable business hours (not 3 am) and only once a day I don't think you have grounds for harassment. Either let it got to voice mail or, if you pick up, stay polite. "Yes, thank you, I've already stated I'll pay on day X. Good day."

And for Og's sake pay on that date.

Next time, if you know you're going to be late, better form is to call them before it's due and let them know it will be late. Will that make a difference? Maybe, maybe not but it's a good idea if you're going to be late with any debt payment whether to a large institution or a private individual. There are instances where notifying in advance gets you better treatment.

I could give more detailed examples if you desire, but won't unless asked.
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Re: Student Loan Harassment

Post by Ralin »

Technically I believe you can tell them to send all communication to you in writing, after which it becomes harrassment. But this is something I read a long time ago in the debt collection thread at SA and I may have the details wrong.

Plus it's probably overkill if you're going to be making the payment within a week.
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Re: Student Loan Harassment

Post by Raw Shark »

The one time I knew I was going to be late with my student loan payment, I called and told them why (I'd lost my job unexpectedly) a week before it was due, and their response was, "Oh, you lost your job? We'll defer all payments for six months," without even being asked. They sent me exactly one notice/month to remind me of the next due date and the interest piling up. Might be worth a shot next time.

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Re: Student Loan Harassment

Post by Broomstick »

You only get one such deferment. You might want to save it for something more than "oh, I'll just be a week late". (I took my deferment after a job loss as well, and was glad I saved it.)
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Now I did a job. I got nothing but trouble since I did it, not to mention more than a few unkind words as regard to my character so let me make this abundantly clear. I do the job. And then I get paid.- Malcolm Reynolds, Captain of Serenity, which sums up my feelings regarding the lawsuit discussed here.

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Re: Student Loan Harassment

Post by Col. Crackpot »

9 days past the due date for an account in good standing? For a loan in good standing to be considered late you need to be tenor fifteen days past the due date, depending on the state. Government Student Loans are fifteen I believe. Now if you are in delinquency and are in a repayment plan to get back on track, that is a different story and they can call you at home once a day. The fair debt collection act does allow you to request they not call you at your work/place of business. IIRC you can also request that all correspondance be in writing, but that tends to make collectors less likely to bend for you in the future.

Be careful with student loans. They cannot be written off in a bankruptcy, the government can just levy your tax return and student loans if unpaid long term are one of the few creditors that can garnish social security income.
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Re: Student Loan Harassment

Post by Col. Crackpot »

Also if you are in a tough spot and unemployed they will work with you... even grant forbearance foe a few months provided you act in good faith. In my professional experience they are one of the most undesrstanding and flexible creditors to work with provided you act in good faith.
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Re: Student Loan Harassment

Post by Prannon »

To add to the mountain building here, I work in a position where I see lots of accounts, billing things, and the like. We give folks a 10 day grace period to pay their bills after the due date before anything gets suspended. Generally, if a customer calls and asks for an extension, as long as it doesn't become recurring behavior, we grant an additional 10 days.

So yeah, good form is to notify in advance if you know that you're going to be late. You'll find that most companies and institutions have some sort of grace policy in place for precisely this sort of thing.
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Re: Student Loan Harassment

Post by Hillary »

Without wishing to be an echo chamber, these guys are all correct. Reputable credit companies are generally understanding when people contact them if they aren't able to pay. They will also look much more favourably on someone who contacts them first.

You have to understand the situation from their point of view. They've lent money to someone and he hasn't paid on time. When they contacted him, he told them he was aware and was just paying them late this month. It's fairly offhand behaviour and seems a pretty casual approach - therefore they are hassling until the money arrives, just in case this person decides that he might be a few more days late or make the late payment a regular thing.

Flagg is right - you need to grow up and accept that you signed up to a loan and have the responsibility to ensure that the repayments arrive on time.
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Re: Student Loan Harassment

Post by Broomstick »

Finally, I am going to give an example where notifying early definitely worked to my advantage.

I had a small personal loan with my credit union when I was laid off in 2007. The payments had been made by direct deduction from my paycheck but with a lay off that obviously wasn't going to continue. Strictly speaking, they could have snapped up my savings at that institution immediately to apply towards the loan and kept billing me monthly, which was their standard practice with such loans. Instead, I went to them before my final day at work and asked that 1) they not touch my savings, as it was my emergency reserve and 2) negotiate a lower payment, due to reduced income. I got both items I asked for, as well as agreement that as long as I paid something every month they would not report me to a credit agency even if I fell behind, as long as I kept paying something. I got that, too. They didn't have to do that, but the truth is, MOST people who take that approach can renegotiate the terms of their loan in such a situation.

Why did they usually snap up the savings? Because a lot of times when people lost their jobs they just stopped paying completely, and refused to communicate, and dodged contact attempts. Going after such loans gone bad is often not terribly effective, and getting back only pennies on the dollar common. But, because I went to them before there was a problem and renegotiated, and stayed in contact and didn't try to evade the debt they were more than willing to work with me. What they want is their money. Getting it back on reduced monthly payments over a slightly longer than originally agreed timeline is vastly more cost-efficient than chasing someone and eventually sending it to a collection agency. It's better to accept smaller payments over a longer period than to have the debtor go bankrupt, which wipes out the debt (well, not for student loans, but I'm talking general). In the end they got all their money and I didn't get a mark on my credit record, even if technically I was four months later in paying off the whole thing (I had to make half-payments for a bit when my income really sank).

And that's why going to a debt holder early works. They are reassured they'll get their money. You get less harassment. Yes, there are assholes out there, but whether you're talking about a landlord, a utility company, a loan holder, or just about anyone else you owe money to most of the time this approach is worth trying. Including student loans. Hell, even the IRS has been known to negotiate repayment terms on occasion (though I'd advise using a professional to help you there should you ever find yourself in that position).
A life is like a garden. Perfect moments can be had, but not preserved, except in memory. Leonard Nimoy.

Now I did a job. I got nothing but trouble since I did it, not to mention more than a few unkind words as regard to my character so let me make this abundantly clear. I do the job. And then I get paid.- Malcolm Reynolds, Captain of Serenity, which sums up my feelings regarding the lawsuit discussed here.

If a free society cannot help the many who are poor, it cannot save the few who are rich. - John F. Kennedy

Sam Vimes Theory of Economic Injustice
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ZGundam
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Re: Student Loan Harassment

Post by ZGundam »

Thanks for all the advise, as well as other things. I plan to not only pay what I owe, but add a month so I can be ahead.
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Re: Student Loan Harassment

Post by Col. Crackpot »

ZGundam wrote:Thanks for all the advise, as well as other things. I plan to not only pay what I owe, but add a month so I can be ahead.
If that is what you are looking to do be sure that you clearly specify that to the loan servicing company. If not it may be applied to your principal balance and your next month payment will be due at the scheduled date.
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Re: Student Loan Harassment

Post by The Yosemite Bear »

wait until you have been to the hospital and they start calling you about money that your insurance company is supposed to pay for, but found the charges sketchy.

The classic one for me was $900 for a <$50 for Ten blood test... well apparently that's what the hospital charges, and as the reciepant of emerggency care that what I'm responsible for even though well that's like an order of magnitude beyond reasonable and it's supposed to be covered under my insurance.
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