I Feel Like Sallie Mae and Navient are Just a Predatory Lender Against Seniors


Dear Steve,

I borrowed 31,000 from Sallie Mae on a Parent Plus Loan. In 2006. I had been paying 485 per month but Navient the servicing company says that I agreed to increase my payment to 1100 per month in 2019. I never did.

They lie, they can not provide a document proving I agreed to this and now I am stuck. I can not afford this.

Borrowed 31,000 have repaid 40,800+ and they are saying I still owe them 41,000. How can this be? What would you do?

Now they say Parent Plus Loans do not qualify for income-based repayment and are suggesting a payment plan based off my gross income.

I have income from rentals I have to pay a mortgage with my gross can be up to 200,000 but my net is like 38,000. This can not work for me either. I have tried everyone and no one cared that Navient is a predatory lender on seniors.

What can I do? Who will investigate this fraudulent company Navient, who is being sued in several states over non-disclosures



Dear David,

It looks like you are saying that in 2006 you took out a Parent Plus Loan and it might have been on a graduated repayment plan or in forbearance at one or more times.

Any payment plan that is less than the regular payment plan is going to build interest and often more than you originally owed.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

If this is truly a federal student loan then you can log in to verify that through the National Student Loan Data System.

While it is true that a Parent Plus loan will not qualify for an Income-Drive Repayment Program, it is easy to get it included. As the Department of Education says, “Parent borrowers can become eligible for an additional repayment plan—the Income-Contingent Repayment Plan—by consolidating their parent PLUS loans into a Direct Consolidation Loan.”

Forgive me if I’m assuming too much here but you seem to be struggling with poor information and needing some clarity to make this entire process easier.

See also  Can We Consolidate Our Parent Plus Loans and Go For PSLF?

Another concern I have is that unless you do get this correctly addressed, and if these are federal student loans, then it could wind up garnishing your Social Security income. You don’t want that to happen.

I would suggest you consult with a knowledgeable debt coach that can guide you through this based on your specific situation. I would suggest you contact Damon Day and let him help you get pointed in the right direction.

While an income adjusted payment plan may soften the monthly payment, it will also inflate the balance you owe. See Why Income Based Student Loan Payments Can Be a Terrible Trap.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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