I have $23,000 of student loan debt from my last year in undergrad and two semesters of graduate school. My loans are managed by NelNet and are currently in forbearance until I begin school again in the fall. In the spring of this year, I started being contacted by various Loan Relief programs (I put in some contact info in response to an Ad I saw on Facebook concerning “New Obama Forgiveness Programs). I received almost daily calls from various Loan Relief Programs.
I finally decided to speak with one of them, Student Loan Service Managers. The gentleman on the phone informed me that they “worked directly with the Department of Education” and that they were sanctioned by the Department of Education to help students consolidate their loans and lower their payments. He asked me for a lot of information and took my monthly payment down from the standard ($267/month) to an income-based repayment plan ($123/month). I received and signed the contract, confident that this organization had my best interests in mind and was going to help me pay back my loans better than NelNet could (this gentleman also made various comments that made NelNet seem like the “bad guys”).
After the adrenaline subsided, I decided to take a better look at my contract with SLS Managers. I vaguely remember him discussing a down payment fee for their services, but I did not remember him telling me that this fee would be renewed every single year. The management fee for the first year was $599, and the renewal fee for their services every year was $492. So, of that $123/month payment, only $84 was being paid towards my loan, the rest of the payment we straight to SLS Managers. I was unaware that I would be paying that much for their services (obviously I should have more carefully read the contract, but because I was urged to sign the document while I was on the phone with the SLS guy, I felt rushed and I wasn’t specifically looking for that information).
Consumer Action Taken:
Fast forward to July 2014, I heard more about the ins-and-outs of these programs on NPR. The radio program mentioned the lawsuit filed by Illinois Attorney General Lisa Madigan against two similar companies. I decided to do some more research and realized that I was indeed paying for a service that I could easily do myself through NelNet. I tried to get someone from SLS Managers on the phone, but couldn’t seem to find a human, so I decided to try emailing them in order to cancel their services. I (almost immediately after sending the email) got a call from the gentleman who originally helped me. He was clearly frustrated that I was trying to cancel their services. He tried to convince me that NelNet was going to charge me and I was better off with them, but I was firm and explained that I no longer wanted their services. After finally convincing him that I wasn’t going to stay with SLS Managers, he finally told me who I needed to email. Two days later, I still had received no email from SLS Managers confirming that I had cancelled with them. I called again today (07/17/14) and a young lady on the phone tried again to convince me that their services would be advantageous in paying off my loans. After a 15-minute conversation, she finally stopped challenging me and agreed to forward the email to her supervisor who could cancel the account. Still waiting to hear back from them.
Date This Problem Happened: May 29, 2014
State You Live in: North Carolina
Age Range: 21-35
Total Amount of Fee Paid:
Company Name: SLS Managers
23172 PLAZA POINTE DR #138
LAGUNA HILLS, CA 92653
Company Telephone Number: 855-747-9918
Website of Company: slsmanagers.com
If you feel you’ve been financially hurt by a debt relief company and deserve a refund, read these step-by-step instructions on how to proceed to attempt to get your money back.
If you do get your money back, come back and leave a comment about it. I’d love to praise companies that step-up and do the right thing for people.
Scam reports are submitted by consumers like you. If you would like to file a scam report, please click here.
If you are the company named in this report and you want to respond, please read How to Handle a Consumer Complaint Like a Pro And Come Out Smelling Like a Rose