Student Loan Fee Credit

By: AP
By: AP

Private student lender Sallie Mae is changing how it handles a fee it charges struggling borrowers who seek to temporarily suspend payments. Rather than cancelling the $50 fee, Sallie Mae will apply the funds toward the borrower's loan balance if on-time payments are resumed for six months in a row.
The change came after an online petition asking the company to drop the fee collected more than 77,000 signatures on The site also hosted petitions last year that targeted Bank of America and Verizon; both companies ended up scrapping plans to charge new fees citing widespread public feedback.
The fee from Sallie Mae isn't new, but has taken on added significance at a time when unemployment remains elevated at 8.5 percent.
Borrowers who are unemployed or suffering economic hardship can apply to temporarily suspend payments on both private and federal student loans. The idea is to keep their credit history in good standing, although the loans still accrue interest.
Federal student loans do not charge to defer payments.

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  • by Jonh T Location: New York on Mar 28, 2012 at 06:30 AM
    For students it’s not that easy to pay off a student loan,of course there times when you’re in difficult situation and can not to make a payment.That’s why borrowers who are unemployed or in hard financial situation can apply to temporarily suspend payments on private and federal student loans.I think it can help because when you’re a student it’s hard to study and to work at the same time and students need to work to pay off their student loans. payday advance loans service can help you to learn more about lending and give fast help when you need money.
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