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Who Can Sallie Mae Get Away With Not Following Direct Loan Rules?

I am confused on how Sallie Mae gets away with this.

My Sallie Mae loans is considered a private loan, so why am I unable to declare bankrupt on it?

If they are a true school loan then won’t they allow me to have income based payback option?

Why don’t they have to follow the same rules as Direct Loans? So which are they student loans or private loans?

Leah

Who Can Sallie Mae Get Away With Not Following Direct Loan Rules? by

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  • http://www.consumerrecoverynetwork.com/ Michael

    Hi Leah,

    Great question. A complete answer would require a great deal of effort.
    In brief:
    Congress and the lobby behind the effort saw fit to make student loan debt non-dischargeable. The changes to how student loan debt began to be treated as a priority debt began in the late 70′s. The situation for student loan borrowers got progressively worse since then.

    Student loan debt is a national crisis and it is going to get worse. I think there will ultimately be some type of alternatives for dealing with the private student loans. There will have to be. That does not help you or anyone else now though.

    One of the better resources available to learn more about student loan debt options is: http://www.studentloanborrowerassistance.org/

  • http://www.consumerrecoverynetwork.com/ Michael

    Hi Leah,

    Great question. A complete answer would require a great deal of effort.
    In brief:
    Congress and the lobby behind the effort saw fit to make student loan debt non-dischargeable. The changes to how student loan debt began to be treated as a priority debt began in the late 70′s. The situation for student loan borrowers got progressively worse since then.

    Student loan debt is a national crisis and it is going to get worse. I think there will ultimately be some type of alternatives for dealing with the private student loans. There will have to be. That does not help you or anyone else now though.

    One of the better resources available to learn more about student loan debt options is: http://www.studentloanborrowerassistance.org/

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