Sallie Mae Student Loan Consolidation - End The Phone Calls Now
College students nowadays are taking out more loans than ever before so that they can find the money for tuition. More and more graduates are finding themselves out of school and unemployed or underemployed. This leaves them with no source of income to pay off their student loan debt.Because educational costs continues to rise, while the amount of federal loans have not, private loans are becoming almost a requirement for many students. This increase in costs and decrease in federal funds means students have to take out private loans to cover everything from fees to rent.
Many students will end up in default on their loans. This is a sad fact. Although it is fairly simple to put federal student loans in forbearance, private loan forbearance is granted at the discretion of the lender. JPMorgan Chase & Co. provides private student loan products via their Chase brand. College graduates who are out of work can not get loan forbearance through Chase until they can give proof that they can resume installment payments immediately after the six-month forbearance period. It can be tough to meet these requirements when you are unemployed.
The burden of debt can be torture for anyone. Its bad enough on its own but when you add harassing phone calls into the mix it can be too much to bear. What these graduates don't know is that they're guarded under federal regulation, even regarding private loans,and that they can tell the lending company to quit harassing them.
When applying for both federal and private student loans most students are told that they will be able to consolidate these loans together after graduation. This isn't always accurate. American Education Services will not consolidate student loans if the borrower does not have a certain credit score, even if AES already services all of the student loans. One student whose credit rating was too low could not consolidate her three AES loans because her credit score was too low, and AES would not even take into account her co-borrower's credit rating.
An article from the FTC, "Facts for Consumers," gives hope for borrowers "A debt collector may not call you before 8 a.m., after 9 p.m., or while you're at work if the collector knows that your employer doesn't approve of the calls. They must honor a written request from you to stop further contact."
Chase as well as other loan servicers, like American Education Services, who services loans through the TERI program, are allowed to start calling borrowers a week or two after a missed payment, and they can call 10 or more times in a single day with or without leaving a message. This is what one AES representative told a delinquent borrower: "Thank you, I will note your account that you will make a payment in two weeks. I must inform you that we will continue to call you until that payment is made."
Borrowers who have been subjected to this harassment can contact the loan provider in writing and demand that they cease communication. This, legally, will stop the phone calls. Borrowers may decide to provide permission for certain kinds of written communication like monthly statements and offers to reduce monthly payments or forbearance. When borrowers insist that lenders interact with them in a lawful fashion, the incessant phone calls end, borrowers feel less stressed, and they can concentrate their energies on working in the direction of a financial solution. This really is considerably more productive than wasting energy on the phone arguing with a debt collector. Most significant, this is the borrower's right.
Many students will end up in default on their loans. This is a sad fact. Although it is fairly simple to put federal student loans in forbearance, private loan forbearance is granted at the discretion of the lender. JPMorgan Chase & Co. provides private student loan products via their Chase brand. College graduates who are out of work can not get loan forbearance through Chase until they can give proof that they can resume installment payments immediately after the six-month forbearance period. It can be tough to meet these requirements when you are unemployed.
The burden of debt can be torture for anyone. Its bad enough on its own but when you add harassing phone calls into the mix it can be too much to bear. What these graduates don't know is that they're guarded under federal regulation, even regarding private loans,and that they can tell the lending company to quit harassing them.
When applying for both federal and private student loans most students are told that they will be able to consolidate these loans together after graduation. This isn't always accurate. American Education Services will not consolidate student loans if the borrower does not have a certain credit score, even if AES already services all of the student loans. One student whose credit rating was too low could not consolidate her three AES loans because her credit score was too low, and AES would not even take into account her co-borrower's credit rating.
An article from the FTC, "Facts for Consumers," gives hope for borrowers "A debt collector may not call you before 8 a.m., after 9 p.m., or while you're at work if the collector knows that your employer doesn't approve of the calls. They must honor a written request from you to stop further contact."
Chase as well as other loan servicers, like American Education Services, who services loans through the TERI program, are allowed to start calling borrowers a week or two after a missed payment, and they can call 10 or more times in a single day with or without leaving a message. This is what one AES representative told a delinquent borrower: "Thank you, I will note your account that you will make a payment in two weeks. I must inform you that we will continue to call you until that payment is made."
Borrowers who have been subjected to this harassment can contact the loan provider in writing and demand that they cease communication. This, legally, will stop the phone calls. Borrowers may decide to provide permission for certain kinds of written communication like monthly statements and offers to reduce monthly payments or forbearance. When borrowers insist that lenders interact with them in a lawful fashion, the incessant phone calls end, borrowers feel less stressed, and they can concentrate their energies on working in the direction of a financial solution. This really is considerably more productive than wasting energy on the phone arguing with a debt collector. Most significant, this is the borrower's right.
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