These protections were: Thanks to these changes, the harshest debt collection methods can be used on people who miss just a few payments. They include garnishing wages without a court order, garnishing social security and disability income, suspension of state professional licenses to include practicing medicine and withholding IRS Tax Refunds.These same methods were previously reserved for ex-spouses who try to dodge child support payments and people found guilty in civil court such as O. In a very short time, the negative attention Sallie Mae earned its self went public.This was completed in 2004 and all official ties to the U. This makes student loans the only type of loan that has this restriction.
If you are looking to consolidate your private student loans, it means there is one less company on the market.For most, it is an opportunity to lower monthly payments by either extending the repayment terms or lowering the interest rate.After some extensive research, I was unable to find reasoning behind Sallie Mae’s decision to exit this market.Basic economic principles would suggest that less competition in the market means you will have a harder time getting approved for a great private loan consolidation.This might also be a sign of good news ahead for current private student loan borrowers.Sallie Mae’s response did not help their case or serve to convince anyone of their good intentions.First, they refused to be recorded in an interview and only provided answers on paper.In 2006, the now supposedly private organization came under the scrutiny of no less than “60 minutes”.Leslie Stahl made a main point of her piece that despite being separated from the government for only two years, then company chairman Albert Lord had already been so well compensated that he was constructing his own private golf course.While members of both political parties are patting themselves on the back after lowering the student loan rates, they still haven’t addressed the heart of the problem.The largest provider of those loans, Sallie Mae, still has extremely close ties to the federal government and absolutely no interest in helping students keep their loans on track and out of default.