Can Sallie Mae private student loans sue if I default? Thinking of stopping payments after 10+ years

Yes, Sallie Mae absolutely does sue borrowers who default on private loans. Unlike federal student loans, private lenders have fewer options for recouping their money, so they're much more aggressive. They can garnish your wages, put liens on property, and destroy your credit score for years. I work in financial counseling and see this regularly. Before doing anything drastic, have you tried: 1) Requesting a hardship forbearance or temporary reduced payment plan? 2) Looking into refinancing with another lender like SoFi or Earnest for a lower rate? 3) Asking about their rate reduction program? Sometimes they'll lower your rate if you've made consistent payments for a certain period.

OMG I literally just went thru this EXACT situation with Sallie Mae!!! They are THE WORST loan company ever!!! I missed 3 payments and they threatened to sue me within like 60 days. My cousin defaulted for 4 months and they actually did take him to court!! It's not like federal loans where you get all those chances and forebearance options and stuff. Private loans will come after you HARD.

I used to work at a student loan servicer (not Sallie Mae). The statute of limitations on debt collection for private student loans varies by state - anywhere from 3-10 years. That means that after a certain point, they can't successfully sue you for the debt. HOWEVER, there are important caveats: 1) If you make even a small payment, that resets the clock on the statute of limitations 2) They can still report the default to credit bureaus 3) Some states allow them to add massive collection fees 4) They often sell the debt to collection agencies who are even more aggressive Before considering default, you should consult with a student loan attorney who specializes in private loans. This isn't standard FAFSA federal loan territory where there are income-driven repayment options and forgiveness programs.

I defaulted on my Sallie Mae loan in 2017 and YES they sued me! It was a nightmare! They got a judgment and garnished my wages for almost 25% of my paycheck. I couldn't pay my rent and had to move in with my parents at 34. DON'T DEFAULT IF YOU CAN AVOID IT!!!! The stress alone nearly gave me an ulcer.

I know this is frustrating, but there are a few options people often overlook with private loans: 1) Request a copy of your COMPLETE loan agreement and have it reviewed. Sometimes there are hardship clauses buried in the fine print that loan servicers don't advertise. 2) If you've been making payments since 2012 and the balance has increased, document everything and file a complaint with the Consumer Financial Protection Bureau (CFPB). They've taken action against Sallie Mae before. 3) Check if your loan has been sold multiple times. Sometimes in the transfer, documentation gets lost, and they can't prove they own the debt if challenged. 4) Negotiating a settlement is possible but usually only after you've already missed several payments (which damages your credit). And most importantly, get EVERYTHING in writing. Sallie Mae customer service reps often say one thing on the phone, but it doesn't match what's in their policies.

Has anyone here tried reaching FSA directly to see if there are any federal options for relief even with private loans? I spent WEEKS trying to get through on their phone line and kept getting disconnected or waiting for hours. Finally I found Claimyr.com which connected me to an FSA agent in under 15 minutes. They have a video demo of how it works here: https://youtu.be/TbC8dZQWYNQ The agent I spoke with explained that while they can't directly help with private loans, there are some federal programs where you might qualify for relief on other educational debt which could free up money to pay Sallie Mae. Also if your school closed or misled you about job placement, there may be discharge options. Worth at least talking to them to know all your options.

Something nobody's mentioned yet - have you checked if your loans had a co-signer? Many Sallie Mae loans require one, and if you default, they'll go after that person too (usually a parent or relative). That destroyed my relationship with my aunt who co-signed for me when I defaulted on my Sallie Mae loan. Also, remember that unlike federal FAFSA loans, private loans CAN be discharged in bankruptcy in some situations. It's not easy, but it is possible if you can prove "undue hardship" which basically means you can't maintain a minimal standard of living while repaying the loan. The legal test for this is complicated (called the Brunner test), but several people have successfully discharged private loans this way.

Kinda off topic but this is why I always tell people to max out their federal FAFSA loans before ever touching private loans! The federal protections are sooooo much better. I had a friend who did the opposite and took out Sallie Mae loans first because they had a slightly lower interest rate at first, but then they jacked it up and he had none of the federal protections. Big mistake!

Thank you all for the advice and sharing your experiences. I'm going to take these steps: 1) Request my complete loan documentation and review it closely 2) File a CFPB complaint about the increasing balance despite years of payments 3) Use Claimyr to talk to FSA about options for my federal loan portion 4) Consult with a student loan attorney about potential bankruptcy options I'll update this thread after I've tried these approaches. It helps knowing I'm not alone in this struggle, even though the situation still feels pretty bleak.

I'm so sorry you're going through this - the stress of dealing with private loan servicers is absolutely crushing. One thing that might help immediately is to document every single phone call from Sallie Mae. Write down the date, time, who called, what they said, and any threats made. If they're calling multiple times a day, that could actually be harassment under the Fair Debt Collection Practices Act. Also, have you looked into your state's Attorney General office? Many states have student loan ombudsman programs that can intervene with private loan servicers on your behalf. It's free and sometimes they have more leverage than individual borrowers do. Some states like California and New York have been particularly aggressive in going after predatory private loan practices. One more thought - if your loan balance has grown despite 10+ years of payments, there might be capitalized interest or fee issues that violate your original loan terms. Definitely worth having that reviewed by someone who understands private loan contracts. You shouldn't have to suffer in silence with this.

I'm new to this community but wanted to share something that might help. I defaulted on my Sallie Mae loan about 3 years ago and while it was incredibly stressful, I did eventually work out a settlement. The key was getting everything in writing and being persistent about negotiating. A few things I learned that might help: 1) Once you're in default, they're often more willing to negotiate than when you're current on payments 2) Settlement offers usually start around 50-60% of the total balance, but you can sometimes get lower 3) Make sure any settlement agreement explicitly states the remaining balance will be forgiven and reported as "paid as agreed" to credit bureaus 4) Never give them electronic access to your bank account - they can be aggressive about withdrawing funds The other thing is that while my credit took a hit initially, it's actually recovered faster than I expected. Three years later I was able to get an apartment and even a car loan. The most important thing is to not let them bully you into making payments you can't afford. Document everything and know your rights under the Fair Debt Collection Practices Act. I know this situation feels hopeless, but there are ways through it. Don't let them make you feel like you're trapped forever.

I'm really sorry you're dealing with this. I went through something similar with my Sallie Mae loan a few years ago, and I want to share what worked for me. When I was at my breaking point, I actually stopped making payments for about 6 months before they started serious settlement talks. A few things that helped: 1) I kept detailed records of every payment I'd made over the years and calculated how much had gone to principal vs interest - the numbers were shocking 2) I wrote hardship letters explaining my situation every few months and sent them certified mail 3) When they finally offered a settlement, I negotiated it down from 65% to 38% of the total balance by being persistent and showing I literally couldn't pay more The scariest part was the months of uncertainty, but honestly? Once I stopped paying, the constant stress of barely making payments while watching the balance grow actually decreased. They did threaten to sue, but ultimately they wanted something rather than nothing. I'm not saying defaulting is right for everyone, but for me it was the only way to finally get out from under that crushing debt. My credit recovered within about 2 years, and I was able to buy a house last year. Sometimes you have to make the hard choice to prioritize your mental health and future over a debt that's clearly unsustainable. Whatever you decide, document everything and don't let them intimidate you. You have more power than they want you to believe.

This thread has been incredibly eye-opening for me as someone who's been struggling with my own private student loans. Reading everyone's experiences really drives home how different private loans are from federal FAFSA loans - there's just no safety net. @Clarissa, your situation sounds absolutely exhausting and I really admire your courage in reaching out for help. The advice from @Harmony about checking the statute of limitations and @Natalie about requesting your complete loan documentation seems really solid. One thing I wanted to add that I learned from my own research - if you do decide to pursue any kind of settlement or negotiation with Sallie Mae, consider getting a consultation with a consumer protection attorney first. Many will do a free initial consultation, and they can help you understand exactly what your rights are under the Fair Debt Collection Practices Act. Sometimes just having an attorney send a letter on your behalf can change how aggressively they pursue collection. Also, I've heard that some credit unions offer private student loan consolidation at better rates than the big lenders, even for people with less-than-perfect credit. It might be worth calling a few local credit unions to see if they have any programs that could help you get out from under Sallie Mae's thumb. Wishing you strength as you navigate this - you're definitely not alone in this fight.

I'm new here but wanted to share something that might give you a different perspective. I defaulted on my Sallie Mae loan about 5 years ago and while it was absolutely terrifying at first, it ended up being the best financial decision I ever made. Here's what actually happened: They did threaten to sue within about 90 days, but they never followed through. Instead, after about 8 months of default, they offered me a settlement for 42% of the total balance with a payment plan. I was able to pay it off over 18 months and finally be done with them. The key things that helped me: 1) I never acknowledged the debt in writing once I stopped paying (this is important for statute of limitations) 2) I saved every penny I would have paid them during those 8 months - having that lump sum ready gave me negotiating power 3) I documented every harassing phone call and eventually sent them a cease and desist letter Yes, my credit took a hit for about 2-3 years, but honestly? The mental health relief of not having that crushing monthly payment was worth it. And unlike federal loans, private loans do eventually fall off your credit report. I know everyone's situation is different, but sometimes you have to choose between endless financial servitude and a few years of credit repair. Just make sure you understand your state's laws and document everything. You have more power than they want you to think.

I'm so sorry you're going through this nightmare with Sallie Mae - their aggressive tactics and predatory practices are absolutely infuriating. After reading through all these responses, I wanted to add a few things that might help: First, definitely document every single harassing phone call. If they're calling multiple times a day, that could violate the Fair Debt Collection Practices Act, which limits collectors to one call per day unless you give permission for more. You can file complaints with both the FTC and your state's Attorney General. Second, I'd strongly recommend calling your state's student loan ombudsman office if they have one. Many states have created these specifically to help borrowers dealing with private loan servicer abuse. They often have more leverage than individual borrowers and can sometimes get servicers to the negotiating table faster. Also, consider reaching out to local legal aid societies or law schools with student loan clinics. Many offer free consultations and can review your loan documents to see if there are any violations of lending laws that could strengthen your position. One last thought - if you do decide to pursue default/settlement, make sure you understand the tax implications. Forgiven debt over $600 is typically considered taxable income, so you'll want to plan for that. You're absolutely not alone in this fight, and you have more options than Sallie Mae wants you to believe. Stay strong and don't let them bully you into payments you can't afford.

I'm really sorry you're dealing with this incredibly stressful situation. Reading through everyone's experiences here, it's clear that Sallie Mae can be ruthless with private loan collections, but you do have more options than they want you to believe. Based on what others have shared, here are some immediate steps that seem most promising: 1) Start documenting EVERYTHING - every phone call, payment history, and communication. Multiple calls per day likely violates the Fair Debt Collection Practices Act. 2) Request your complete original loan agreement and have it reviewed by someone who understands private loan contracts. Sometimes there are violations or hardship clauses buried in the fine print. 3) File a CFPB complaint about your balance increasing despite years of payments - this has helped others get servicer attention. 4) Look into your state's student loan ombudsman program if available, or contact legal aid societies for free consultations. The stories from @Emily and @Keisha about successful settlements after default are encouraging, but obviously that's a huge decision with serious credit implications. The key seems to be going in with documentation, saved settlement funds, and knowledge of your rights. You've been fighting this battle alone for over a decade - it's time to get some advocates in your corner. Don't let them continue to intimidate you when you clearly have options to explore.

I'm so sorry you're going through this - dealing with Sallie Mae's aggressive collection practices while watching your balance grow despite years of payments is absolutely soul-crushing. As someone new to this community, I've been reading through all the responses here and I'm honestly shocked at how predatory private loan servicers can be compared to federal FAFSA loans. One thing I wanted to add that I don't think has been mentioned yet - have you considered reaching out to your alma mater's financial aid office? I know it sounds counterintuitive since you've already graduated, but some schools have alumni emergency funds or can connect you with resources specifically for graduates struggling with private loans. They might also have relationships with local credit unions or know about state-specific programs that could help. Also, if your school has a law clinic, they sometimes take on student loan cases pro bono, especially if there are potential servicer violations involved. Given that your balance has grown despite a decade of payments, there might be grounds for legal action that could strengthen your negotiating position. The courage it took to post this and ask for help shows incredible strength. You've already taken the hardest step by reaching out - now you have a whole community of people rooting for you and sharing practical advice. Please keep us updated on how things go with the documentation and CFPB complaint process!

I'm new to this community but had to jump in after reading your story - it's heartbreaking how Sallie Mae traps people in these endless cycles. I went through something similar with a different private lender and what finally helped me was getting organized and fighting back systematically. A few things that worked for me: 1) I created a spreadsheet tracking every payment I'd made vs. how much went to principal - the visualization was shocking and became powerful evidence for complaints 2) I recorded all their harassing phone calls (check if your state allows single-party consent) - this gave me leverage when I threatened to report FDCPA violations 3) I found a local credit union that specializes in "rescue refinancing" for people stuck with predatory lenders - even with damaged credit, they worked with me The most important thing I learned is that these companies DEPEND on borrowers feeling hopeless and isolated. Once you start fighting back with documentation and knowledge of your rights, their tune changes fast. You've already shown incredible strength by reaching out here - that's honestly the hardest part. Also, don't underestimate the power of social media pressure. Sallie Mae has been called out publicly before for their practices, and sometimes a well-documented Twitter thread gets faster results than months of phone calls. You're not powerless in this situation, even though they want you to feel that way.

I'm so sorry you're dealing with this nightmare - your situation really hits home for me because I went through something very similar with Sallie Mae a few years ago. The constant harassment calls and watching your balance grow despite making payments is absolutely soul-crushing. One thing that really helped me was getting connected with the National Consumer Law Center - they have free resources specifically about private student loan rights that most people don't know about. They also maintain a list of attorneys who specialize in predatory lending cases and often do free consultations. Another approach that worked for me was sending Sallie Mae a "qualified written request" under the Real Estate Settlement Procedures Act (RESPA) - yes, it applies to some student loans too! This forces them to provide a detailed accounting of every payment, fee, and interest charge. When I did this, I discovered they had been misapplying payments and charging unauthorized fees for years. The most important thing I learned is that Sallie Mae counts on borrowers not knowing their rights. Once you start pushing back with proper documentation and legal knowledge, they often become much more willing to negotiate. You've already shown incredible courage by reaching out here - that's honestly the hardest step. Keep fighting and don't let them convince you that endless payments on a growing balance is your only option. You deserve better than this predatory treatment.

I'm new to this community and your situation really resonates with me - I've been dealing with similar issues with private student loans, though not with Sallie Mae specifically. Reading through all these responses has been incredibly educational about options I never knew existed. One thing I wanted to add that might help - have you looked into whether your state has any specific private student loan borrower protections? Some states like Illinois, Connecticut, and Washington have passed legislation that gives borrowers additional rights when dealing with private loan servicers, including caps on collection fees and requirements for clearer communication about payment allocation. Also, I noticed several people mentioned the importance of getting everything in writing, and I can't stress this enough. When I was dealing with my private loan servicer, they would promise things over the phone that never materialized. Now I follow up every phone conversation with an email summarizing what was discussed and asking for written confirmation. It's amazing how much more cooperative they become when they know there's a paper trail. The fact that so many people here have successfully negotiated settlements or found ways to fight back against these predatory practices gives me hope for all of us dealing with this nightmare. You're definitely not alone, and the strength it took to share your story here shows you have what it takes to fight this battle. Wishing you the best as you explore all these options!