The article that I read today on SmartMoney.com started with, “Getting private student loans is about to become easier.” That first sentence was enough to get my attention as even before things are made easier millions of students are already suffocating in their student loan debt, unable to pay it off due to the lingering recession and lack of job opportunities. Students who are going to take out loans from these lenders will most likely end up the same in 5 years as their seniors now. Even if the economy is recovering today, it will take more than 25 years to get it back to the same point it was before the recession. Have we not learned from the Great Depression in the 1930′s?

Private lenders and the credit unions are giving a new push in order to get some of the college lending market. This could mean that more doors for students who are looking to borrow will open wide. However, these loans will most likely come with a much higher price tags and more difficult conditions compared to the loans offered by the federal government. I hope these poor students understand this condition before signing up.

Even without the new doors opening now for students to get education loan easier, too many students already have had unpleasant experiences beside the fact that they graduate with a heavy load of private student loans. Below are a few complaints made by several students who claim to have been scammed by student loan lenders.

A. Chelizoo wrote about the Wachiova Student Loan:

My daughter has a student loan (I am the co-signer) with Wachovia who contracts with ACS eduction services. She graduated from in Oct 2009 and then continued as a full time student with an unpaid internship until Feb 2010.

The requested documentation of this has been mailed, faxed, emailed starting in May 2010 and continues until today 7/14/2010 to ACS. ACS turned the account to Credit Collection Services who continue to mail/call saying she has not made payment. ACS has put our names into collections and the 1st loan payment is not due until 8-28-2010 (6 months from end of schooling).

I started to call and deal with ACS on 6/25/10 and was told they couldn’t find the paperwork. She sent the paperwork to the Credit Collection Services as she was told. I then sent another copy to ACS via a confirmed email. I was then conferenced with both and the ACS rep hung up when I could not verify a 2nd phone number.

I called ACS 7/1, and was told again paperwork was received it will take 7-10 days to process. I called ACS again today and was told again by a Rob that the paperwork is in the system and her deferment has already been processed! He told me to tell collections to take us off their list?

I then called CCS and spoke to a Jennifer who says we do not have the correct paperwork. She then put me on hold contacted someone at ACS who told her the same, we do not have the correct paperwork? I called ACS back again and talked to a Teresa who told me she read the notes and the paperwork is correct?

Today I filed a complaint with the BBB against the customer service we have received from ACS. We cannot get complete answers as to what is needed for her deferment to be understood. They also say they cannot stop the collections through CCS? I am extremely disappointed that we would chose a bank such as Wachovia to do a student loan and we now deal with a ACS who we have never even heard of and cannot get resolution!

Karen of Hopkinsville complains about Direct Student Loan Consolidation:

I filled out an application online with Direct Student Student Loan Consolidation and waited for more information about the consolidation. I wanted to ask questions before I considered but they sent the letter stating that I had 10 days but it was sent out late. The letter didn’t come until after the April 4th and it was dated March 31st and they paid my creditor off April 9th. I was out of town when the letter came but they still didn’t give me 10 day as they said because it was paid off 9 days later. They have my loan set up as if I was paying for a house. Out of 286 on 6 dollars a month will go to my principle.

I called the department to get more information and that is when they told me that the loans were already paid off. That’s when I told them I was calling to get more information not to tell them to go ahead with the process. Who can afford to give away 280 a month during this economic hardship? That is a rip off! We need help please have an attorney to call. There are a lot of people online singing the same exact song as mine. The are trying to rip me off. I owe 42,000 and when I am done I will have paid them close to 90,000.

Student X had their loan sold to several other lenders until it came into the hands of Sallie Mae.

I am struggling with trying to set up a payment arrangement with Sallie Mae.

I have, through a bit of time on the internet, discovered that this is not the best place to have to deal with. I did not have my loans through them originally. My loans have been sold to the best of my recollection, at least 4 times. And, they ended up at Sallie Mae. (First Wisconsin Bank, to Great lakes Higher Education to someplace in Arizona, notw to Sallie Mae. There may be more in the middle!).

I have been through divorce and bankruptcy recently. My bills (without the loans) at this point, amount to over $2,000 a year MORE than I take home. (with the payments, if I cannot work out something, I will be $6,000 or so in the red!). Every year, I hope things will get better. Every year, it gets worse. I cant even keep up with dental work for my kids (with insurance!) or for myself.

I applied for income sensitive repayment. Got a note that said instead of having a payment of $405 a month, I would have to pay only $326! Wow, that is a big help. I have a job. I also have a car loan at 21% due to the bankruptcy; and I pay an extra $500 in rent each month because of my Ex. I ended up in bankruptcy because my wages were being garnished for his bills. Marital property laws SUCK, and are punitive in some situations.

I have written Sallie Mae again, trying to explain my situation. I do not have any hope that it will help. I am 48 years old. My life did not go the way I had planned. I went to school to NOT have to live like this. Ironically, it has actually made my life worse….

I will never own a home, or get to retire. I will be one of those little old ladies, greeting customers at the front door of WalMart, until the day I die. Because I thought that getting a college degree was going to HELP me!

I am also trying to get the original info on my loans, but that looks hopeless as well….

I do not understand how it has come to this. They have all the power. It does not seem as though there is any recourse. And, since forcing me into default is financially more attractive to them, why would they want to help?

It does not matter what school you choose, it is going to be expensive. What students should be told from the beginning is that if they choose to finance their education by borrowing money, their private student loan will last foar a long long time even after the final exams are done!

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