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SallieMae Complaint - Advertising Services Not Available

Review by Doc J on 2006-06-01
I get to demonstrate my3cents.com to a patient and his young son who is just entering private practice medicine.

The youngster took out student loans for his medical education (an should have had 20 points subtracted from his M-CAT for doing so). Shortly after residency, he consolidated his loans with SallieMae with a variable rate loan. Now that interest rates are going up (watch what happens to t-bills) he wants to re-consolidate to a fixed rate. He understands he should have gone "fixed" initially, but thought it "easier" to stay with his original lender during reconsolidation.
So, he gets a letter from SallieMae urging him to consolidate with them and he calls to complete the process. He tells me they decline because "I already reconsolidated." Hmmmm. I have a nephew who reconsolidated his loans through a different species of loan shark.
I tell the hapless new doc to bring me the SallieMae promo materials and I'll help him out. He does. I call SallieMae and speak with "Kelly". I explain "I want to reconsolidate my student loans." Kelly states, "SallieMae does not reconsolidate student loans." I refer to the promo materials. The first sentence of the second paragraph says, "Even if you have already consolidated, SallieMae can help."
I asked Kelly about this. She responds, "SallieMae does not reconsolidate student loans." I ask the specific meaning of the sentence in the promo materials. Kelly responds, "I dunno, it was probably sent out in error."
Yes, SallieMae sends out thousands of promo materials "in error". Yet, only they stand a better chance of finding Jimmy Hoffa than does the FBI.
I surmised to my young colleague that SallieMae realized the promotion was an "error" when they saw how high t-bill rates are about to climb.

Oh young-docs-to-be...borrow thee not. Findeth thou an elder doctor or hospital to sponsor thee or helpest thou pay thine tuition. Stayest thou out of the clutches of SopranoMae Servicing et al.
Comments:6 Replies - Latest reply on 2006-06-02
Posted by Sparticus on 2006-06-01:
Many folks who jumped on the variable rate bandwagon a few years ago are probably feeling the heat of the rising rates nowadays. Hopefully he can find another financial institution to work with him.
Posted by Doc J on 2006-06-01:
Sparticus-Exactly! You should see the faces of people who bought homes in my neighborhood with ARMs. They could barely make the payment before the rates went up. I think the kid will be OK. He knows he made a mistake...the consequences of residency hours (still better than in my day).
Posted by Sparticus on 2006-06-01:
Yeah, I'm sure he'll be fine. I had SallieMae loans from college as well, but paid them off pretty much with a year or two of graduating, so I never had to deal with their customer service. I've heard other mumblings on the net about how they (SallieMae) are on a downslide.
Posted by Anonymous on 2006-06-01:
It should'nt be as bad as it sounds, be patient.
Check out Clark Howards information.
http://clarkhoward.com/shownotes/2006/05/18/#studloan
Posted by ejack053824 on 2006-06-01:
US Air Force Academy gave me the best rate. Free!
Posted by Doc J on 2006-06-02:
Thank you for your service ejack. God Bless!

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