So, administration of some of my federal student loans has been handed to Sallie Mae

[hedgehog]

- or Sallie Mae bought the loans, I'm not sure. I wasn't realy aware that this happened until the direct withdrawal didn't happen. I called up to find out what was going on, and apparently Sallie Mae isn't set up to handle the loans yet, so I get to skip a month (or two) until they get their act together and send a bill or resume the automatic withdrawal. No penalties, no added interest.

Anyone else run into anything like this?

It might be a sneaky way to goose consumer spending slightly.

[bbinacan]

1. It's a shell game. n/t

[Ruby the Liberal]

2. I am still in deferment, but got a letter from SallieMae last week

that they had bought the servicing rights to one of my loans.

I read that as the Stafford is still owned by the Dept of Edu but Sallie bought the servicing fees to manage payments.

[Divernan]

3. Better get that in writing or you could be on the hook for immediate payment in full..

Dead seriously, my daughter had 2 separate loans, one for undergrad and one for grad school. She sent in 2 checks every month(same time, same envelope, with different loan numbers written on the 2 checks). After a whole year, she was notified she was in default on one of the loans & therefore both loans were due in full, with penalties and interest. Someone, whether to deliberately set her up for this, or through sheer incompetence/stupidity, repeatedly credited both checks to only one account. This was through PHEAA, the Pennsylvania state "Higher Education Assistance Agency", which "administered" loans she had taken from local banks.

So take NO chances with missing a payment.
If you didn't get the full name, title and business address/email address of the person who gave you this info, call back. This time get the identity/address of the person to whom you speak, verify what they will do to notify you of when and where to start paying. Once you have the contact information, THEN, you write a letter/send it registered, return receipt requested, as follows:

"Dear________,
This correspondence confirms our phone conversation of (insert date), wherein you advised me (1)that your employer, Sallie Mae, has purchased my student loan (put in ID number for loan); (2) that you and/or your employer will send me written notice as to when I should resume payments and the address to which I should send such payments; and (3) there will be no penalties or interest charged to me (or whatever the person tells you they will do to notify you). If my understanding of our phone conversation is in any manner or detail incorrect, please respond immediately with the correct information. Kindly send all correspondence by registered mail to ensure that I receive it and do not miss resuming my payments."

It's inconvenient to do this I know, but believe me, far less costly than fighting a default claim, or penalties and interest. And what's to stop them from sending you notice telling you to send in payments for any months you've missed. I've dealt with so many clueless people in organizations - you have absolutely no guarantee that the person who spoke to you on the phone wasn't guessing (as in "1 month, maybe 2), and his/her boss could always change their mind. The IRS, for one, does not stand behind advice they give to taxpayers over the phone.


And I don't know of any bank which would switch automatic withdrawal from one payee to another. You should verify with your current lender that they no longer have your loan and then check in with your bank to cancel the automatic withdrawal to the former holder. Otherwise, your bank may well keep sending monthly payments to the former holder and it could take months for you to get that money returned. Meanwhile Sallie May is demanding to be paid.