Student loans- the facts

  • Missed or late payments result in collection actions: calls, letters, and emails. 
  • If collection calls and notices don’t work, then the student loan servicer may sue you for a judgment.
  • The Fair Debt Collections Practices Act (FDCPA) prevents deceptive, abusive and harassing collection tactics by debt collectors.     
  • Your student loan servicer is a “debt collector” under the FDCPA if it did not provide you with the original loan.
  • With a judgment, the servicer can garnish your wages, take money from your bank accounts, and put a lien against your property.
  • Under Tennessee Law, professionals can lose their licenses for defaulting on student loans.  Public Acts, 1999.  Chapter No. 476
  • Sallie Mae is the nation’s largest student loan servicer and owns an estimated 20% of all outstanding student loan debt. 
  • Sallie Mae accounted for almost half of the complaints submitted to the Consumer Financial Protection Bureau regarding student loans in 2012.
  • In 2014, Sallie Mae had to pay the Department of Justice $60 million for cheating active duty military troops out of their rights under the Servicemembers Civil Relief Act.
  • Servicers of private student loans cannot take your tax refunds or disability benefits, but they can for delinquent federal student loans.