I, like most graduating law students, was forced to dig myself further into debt by taking out a bar loan. Couple the insane costs of bar prep courses with the fact that you have to devote most of your waking time to exam preparation for roughly three months, and it is pretty much unavoidable. I had the severe misfortune, however, of choosing Sallie Mae for financing. And, I really didn't discover the error of my ways until after the initial grace period expired.
A couple of months ago, when I initially began the deferment process for my many student loans, I found it odd that I couldn't find the appropriate form for my Sallie Mae Bar Study Loan. After spending an ungodly amount of time dealing with outsourced representatives, I finally managed to convince a rep to transfer me to someone in the United States. I was then informed that Sallie Mae technically does not offer an unemployment deferment/hardship forbearance, but that I could take a "voluntary deferment" for three months at a cost to me of $50.00 per loan. The real kick is, they won't even add it onto your principle; if you want it deferred, you pay them now.
I really don't want to get into the private loan discussion. The fact is, other lending institutions that offer bar study loans do not resort to such unconscionable tactics. It is common sense not to. While these loans are technically "private," they are used for educational purposes and charging economically distraught individuals to defer their loans utterly lacks decency. This goes without saying even in economically better times. It is 100% foreseeable that some percentage of new attorneys will always struggle to find work. Pushing them in the direction of bankruptcy just seems counterintuitive.
My advice to anyone who has the displeasure of dealing with Sallie Mae is to write to your representatives and senators. It is true that Sallie Mae is insanely profitable, and if you are unaware of how deep their political influence runs, well then you have been living under a rock. We do, however, have to use what little voice we have. While our government is not very likely to curb the abuses of Sallie Mae and her lending brethren, if we spread the word enough we may be able to wish them out of existence. Put simply, don't do business with Sallie Mae, and tell everyone you come in contact with to follow suit. If I could, I would literally shout it from the rooftops.
As a side note: I expressed these concerns and more in a letter to Sallie Mae. It has been well over a month, and no response. Don't worry, I am not holding my breath.
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