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It was from Sallie Mae saying they were taking over my loans that have been with Citybank for the last...11+ years. They said nothing would change. Any thoughts on this? Why? Advice or warnings?
 

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Remember The Alamo
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Yea look up clark howard , he said on the news this morning that there was a way to get your loans forgiven after you pay on them for atime.
 

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looks to me like Citybank is raising capital by selling off student loans to Sallie Mae. Not a big shocker, all of the banks are facing serious liquidity issues going forward as they must revise their forecasts to accept the FED 0% interest rate for the next 2 yrs and a downturn in the economy...this means they need to clean up their balance sheets, student loans are a bad investment right now as most kids getting out of college cannot get a job and are unable to pay those loans....so dump them to Sallie Mae and get them off the books as they are pretty much a liability now.
 

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Yea look up clark howard , he said on the news this morning that there was a way to get your loans forgiven after you pay on them for atime.
You had me excited for a second, so I had to look it up. Here it is:

Student Loan Forgiveness

New student loan forgiveness laws are in place that benefit a wide range of workers. Public service employees will enjoy full loan forgiveness after making 10 years of monthly payments on their federal loans. (Private sector employees must make a 25 years of monthly payments to have their remaining balance wiped away.)

This comprehensive list compiles some of the most popular loan forgiveness opportunities. A state-by-state list of loan forgiveness programs has also been compiled by the American Federation of Teachers. Here are the public service fields that will qualify for loan forgiveness under the CCRAA:

  • Government, military service, emergency management, public safety, law enforcement, public health, public education. (In addition, military personnel on active duty will be able to defer payments on their loans, and service members who are returning to civilian life will be able to defer payments for more than a year.)
  • Social work in a public child- or family-service agency; public interest law services, including prosecution or public defense or legal advocacy in low-income communities for a nonprofit organization; public child care; public service for individuals with disabilities; public service for the elderly.
  • Public library sciences, school-based library sciences and other school-based services.
  • Certain employees at nonprofit groups, as defined by the tax code, and full-time faculty members at tribal colleges or universities.
 

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Ooh, pancakes!
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New student loan forgiveness laws are in place that benefit a wide range of workers. Public service employees will enjoy full loan forgiveness after making 10 years of monthly payments on their federal loans. (Private sector employees must make a 25 years of monthly payments to have their remaining balance wiped away.)
Nice, yet another way in which the government is taking care of its own and setting up a caste system with the gov't employees as the "favored" caste.
 

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Believe in Yourself
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looks to me like Citybank is raising capital by selling off student loans to Sallie Mae. Not a big shocker, all of the banks are facing serious liquidity issues going forward as they must revise their forecasts to accept the FED 0% interest rate for the next 2 yrs and a downturn in the economy...this means they need to clean up their balance sheets, student loans are a bad investment right now as most kids getting out of college cannot get a job and are unable to pay those loans....so dump them to Sallie Mae and get them off the books as they are pretty much a liability now.
Wait!?? FED 0% interest rate for the next 2 yrs while everyone and his brother is paying through the nose?
Get a rope....
 

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Let's throw some links out there:
http://www.finaid.org/loans/publicservice.phtml

Turns out that most of the jobs are probably non-governmental, non-profit, poorly paid service jobs. And you need to have been employed 10 years full-time, which isn't easy (my wife would have qualified, but of course her employer offers almost purely part-time positions).

As for taking care of their own, why not? Wouldn't we all benefit if our professions, employers, management, etc. were organized and looked out for one another? If we spent a little less time trying to destroy labor organization, benefits, etc. and a little more time taking care of ourselves, we might see improvements rather than bad news year after year.

Nice, yet another way in which the government is taking care of its own and setting up a caste system with the gov't employees as the "favored" caste.
 

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As far as the loan converting to Sallie Mae. I wouldn't worry about it. What's the worst that could happen? I hope you are able to meet all your payments in the future. Many will not be able to.

My sister is 58 years old and has student loans up the yin yang. She has 23 more years of payments. She will be 81 then, if she lives that long. She is very overweight and it's highly unlikely she will ever repay all the money she borrowed. She does have a good job currently and can make her payments now, but what if she becomes disabled or unemployed?
 

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Let's throw some links out there:
http://www.finaid.org/loans/publicservice.phtml

Turns out that most of the jobs are probably non-governmental, non-profit, poorly paid service jobs. And you need to have been employed 10 years full-time, which isn't easy (my wife would have qualified, but of course her employer offers almost purely part-time positions).

As for taking care of their own, why not? Wouldn't we all benefit if our professions, employers, management, etc. were organized and looked out for one another? If we spent a little less time trying to destroy labor organization, benefits, etc. and a little more time taking care of ourselves, we might see improvements rather than bad news year after year.
Hmmmmm.

Let's take a gander at those jobs instead of saying "probably".

Public service jobs include, among other positions, emergency management, government (excluding time served as a member of Congress), military service, public safety and law enforcement (police and fire), public health (including nurses, nurse practitioners, nurses in a clinical setting, and full-time professionals engaged in health care practitioner occupations and health care support occupations), public education, early childhood education (including licensed or regulated childcare, Head Start, and State-funded prekindergarten), social work in a public child or family service agency, public services for individuals with disabilities or the elderly, public interest legal services (including prosecutors, public defenders and legal advocacy on behalf of low-income communities at a nonprofit organization), public librarians, school librarians and other school-based services, and employees of tax exempt 501(c)(3) organizations. Full-time faculty at tribal colleges and universities, as well as faculty teaching in high-need subject areas and shortage areas (including nurse faculty, foreign language faculty, and part-time faculty at community colleges), also qualify

So a fair portion of them are jobs funded by the taxpayers who supplied the funds for the school loans originally and now have to cover the cost of the loans.

Wow.

Sounds like a liberal nirvana dream scenario.

And folks wonder where all the money goes ... and just how easy it would be to slash every government program/agency/department by 15 to 20% across the board today and not see one WHIT of difference.

Except of course a shrinking deficit.
 

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Remember The Alamo
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You had me excited for a second, so I had to look it up. Here it is:

Student Loan Forgiveness

New student loan forgiveness laws are in place that benefit a wide range of workers. Public service employees will enjoy full loan forgiveness after making 10 years of monthly payments on their federal loans. (Private sector employees must make a 25 years of monthly payments to have their remaining balance wiped away.)

This comprehensive list compiles some of the most popular loan forgiveness opportunities. A state-by-state list of loan forgiveness programs has also been compiled by the American Federation of Teachers. Here are the public service fields that will qualify for loan forgiveness under the CCRAA:

  • Government, military service, emergency management, public safety, law enforcement, public health, public education. (In addition, military personnel on active duty will be able to defer payments on their loans, and service members who are returning to civilian life will be able to defer payments for more than a year.)
  • Social work in a public child- or family-service agency; public interest law services, including prosecution or public defense or legal advocacy in low-income communities for a nonprofit organization; public child care; public service for individuals with disabilities; public service for the elderly.
  • Public library sciences, school-based library sciences and other school-based services.
  • Certain employees at nonprofit groups, as defined by the tax code, and full-time faculty members at tribal colleges or universities.


Well I tried, sorry
 

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Cynical reply: doesn't matter if you're a large financial institution or a corporation, so why not for ordinary people also? At least they're working for peanuts at a social service, counseling the poor, at a medical clinic for the poor, etc. whereas the big banksters don't appear to be doing anything socially redeeming at all.

More serious reply: Who would this benefit the most? So far as I can see, the lawyer or doctor who goes to an expensive ivy league school and racks up $150K-200K in student loans. He works 10 years in public service, then gets the remainder of his expensive Harvard or Yale degree paid off for free.

Does Harvard or Yale get any of that money? Or is it just written off as a loss? Who eats the loss?

My guess is (a) that the Ivy League school in question is not absorbing the loss and (b) the extent to which they get these retro-active scholarships courtesy of Uncle Sam is the extent to which they don't offer decent grants at the front-side of a student's entry into college.

Re: loan forgiveness. This seems effed up. If you borrow the money, you should have to pay it back. Shouldn't matter how many years you serve. Sorry.
 

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Not sure if it matters, but see if you can consolidate all of your loans through the Federal Direct Loans program- especially if there is a potential to lock in at a lower rate. I'm not sure what your rate is with Sallie Mae, but I believe the Federal Loans are fixed at 5%.
 

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Dust of the Earth
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Nice, yet another way in which the government is taking care of its own and setting up a caste system with the gov't employees as the "favored" caste.
This may be correct in many cases, but not all. I am a former public school employee, a former county non-profit employee, and currently a state employee at a public university. Similar incentives are traded to us in place of salary via "contract negotiations". It's not done out of benevolence or because they "favor" us in any regard. They'll just as quickly throw you under the bus if it serves them. Been there done that. Most people don't take advantage of incentives and so the govt comes out ahead. I'm not saying this is true in every instance, but that has been my personal experience.
 

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Prepared Gourmet
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Cynical reply: doesn't matter if you're a large financial institution or a corporation, so why not for ordinary people also? At least they're working for peanuts at a social service, counseling the poor, at a medical clinic for the poor, etc. whereas the big banksters don't appear to be doing anything socially redeeming at all.

I am surprised people seem surprised. This was announced by Obama eons ago.

And you can benefit ... the idea is that if you want to benefit though ... you will go get a government job and do whatever they want you to do ... which will include looking after the poor and supporting the changes to come under Obamacare .. for at least 10 years. You didn't expect that just anyone could get this perk did you? :) You may not 'be' a Democrat but to get it you will have to walk like one, talk like one and behave like one for the stipulated time period. Some people are just luckier than others in that they are already employed in the specified fields and have been for some time. Others will now be hooked in upon graduation.

Obama himself was very proud of this 'plan' when he announced it some time ago and these are just the expected messy implementation details coming out of whatever massive department they have created to deal with it all. Only 1 state (in the northwest I believe, but I can't recall which) was granted the right for their banks to continue administering student loans.
 

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Great White Hunter
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If we spent a little less time trying to destroy labor organization, benefits, etc. and a little more time taking care of ourselves, we might see improvements rather than bad news year after year.
If we spent a little more time taking care of ourselves instead of whining about what we're not getting, throwing money away by organizing unions instead of paying for our own health care so they can force our government to pay more then the worth of certain professions and using everyone elses tax dollars to give benefits above and beyond what is standard and economical... We'd all be in a pretty good place.

Unions are not the answer. There was a time when they were necessary to ensure a safe and fair work environment. Now they are only a burden on everyone except those benefiting from them and an economical disease that needs to be wiped from this country.

And as far as people who make more money not doing anything socially redeeming at all is crap. Who do you think pays the majority of the taxes that pay for government employees salaries, retirements, healthcare, COLLEGE TUITION FORGIVENESS. Who do you think funds every non-profit in the country? Surely not some self-righteous highschool teacher who works 9 months out of the year, complains that it's too much, pays nothing for healthcare or retirement and makes more than the average standard of living.

My God.

Someone has to pay for their coasting through life and retirement, don't rag on the people who do it.
 

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It was from Sallie Mae saying they were taking over my loans that have been with Citybank for the last...11+ years. They said nothing would change. Any thoughts on this? Why? Advice or warnings?
Yeah, I got the same email. Apparently it has to do with Obummer's student loan "reforms", the same law that forced the banks out of the business and gave sole originating power to Sallie Mae. Or at least that's what the email claimed. I had sent in paperwork to apply for deferred payments a couple days before, and of course it didn't make it to Sallie. Good thing I kept copies.
 

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this happens all the time. dont be alarmed. Loans, even student loans, are bundled up and rated (just like the mortgages in 2008) by s&p and the likes. They are then bought and sold based on that rating. Nothing has changed in your origional contract, its just owned by someone else now.
 
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