Denied student loan

M

meLIBERTY2

Registered Users (C)
Not federal, but private through Sallie Mae.

And I have very good credit by the way, FICO > 700.

The bank however insists on a "Permanant Resident" or US Citizen guarentor.

I'm thinking of letting this slide and making a deal with the school to see if I can make a payment arrangement.

I don't want to fight with the bank (I like to pick my fights) but does anyone have any suggestions?
 
It's a private loan though a bank that funds private student loans. Not a federally guareenteed load like Stafford or Perkins. ( I have that).

I'm a little upset, hopefully I can work out something though the school. Because this is a private loan, the bank calls the shots basically.
 
It sounds to me the denial was based on credit rating rather than immigration status.

Not much you can do except to shop around.

PS: Do not take out so much loans for school please, since you already have Perkins and Stafford.
 
Originally posted by meLIBERTY2
Not federal, but private through Sallie Mae.

And I have very good credit by the way, FICO > 700.

The bank however insists on a "Permanant Resident" or US Citizen guarentor.

I'm thinking of letting this slide and making a deal with the school to see if I can make a payment arrangement.

I don't want to fight with the bank (I like to pick my fights) but does anyone have any suggestions?
Click to expand...

Try the zero percent. I get innundated with credit card offers that give me a 0% rate for a whole year. If you have a good credit history, you can charge this credit card for a year then transfer the balance to another account with less interest ( or may be another year of 0 %). It is perfectly kosher to do so.
 
meLIBERTY2
I have a student loan with Sallie Mae and Stanford loan which I got 2 DAYS AFTER MY ASYLUM APPROVAL - NO QUESTION ASKED. I work for the mortgage fraud detection industry and YOU ARE ELIGIBLE FOR THE LOAN. It is an obvious discrimination case. They do not have legal grounds to refuse you for the loan. Go to school and make a big deal about it. They should find a bank that will give you a loan, because that's their job. If they refuse, there are many PRO-BONO lawyers who will help you. Don't let it slide. If I didn't fight, I would be in trouble and I wouldn't be able to finish school. Some schools (like in Pennsylvania) refuse even refugees for federal help, BUT LEGALY THEY CAN NOT DO THAT!!!! You have to fight and school has to find other way for you to finance the school. Don't give up.
 
Lawyers are messy

Let me see if this is worth fighting for. Can anyone point me out to some pro bono resources to help me out? (I live in New York City) PM me if you like.

As far as I know, the banks are free to decide thier own lending policies but cannot discriminate based on age, race, gender discriminaton.

But immigration status?
 
I just talked with one of the US best Fraud investigators. She is doing training for the FBI and CIA. She is saying that this IS part of discriminatory lending. We are entitled to the federal aid as well as private school loans. All the loans should go through the school. If the school does not want to help you, before you get into any legal hurdles, I would contact your state Attorney General and make a formal complaint about the school. Trust me, Attorney General will help you (at least in my experience against one of the auto dealers). They will go extra mile for you. If nothing works out, then seek for the pro-bono lawyer or go to local (or any) law school and talk to the head of department and they might find a way. Just one thing to mention. It might be hard to fight the bank, because they might set local policies for the bank that they will not accept anybody without the green card, and legally they can do that. However, if they give the loan to anybody without the GC (like Sallie Mae bought my loan from the local bank and I still do not have GC), then you have the case of Discriminatory Lending. As you see, they always have way out. The best bet would be to pursue the school to help you get the loan. Try with one of the local banks (again through the school) and then you will eventually end up with Sallie Mae who will buy your loan. What a paradox :rolleyes:
 
LIBERTY,

MY UNDERSTANDING IS THAT AS ASYLEES YOU ARE CONSIDERED AS PR FOR LOAN PURPOSES.

SO IF YOU FEEL THAT YOU WERE DENIED ON THE BASIS OF IMMIGRATION STATUS, I WOULD PURSUE THIS MATTER FURTHER
 
Here's the update.

"Your credit was approved, however because you are a foreign student, we need a Permanant resident or US Citizen guarentor."

They just make my blood boil.

Stay tuned.
 
Taken from Freddie Mac/Mae Standard Underwriting Guidelines


Permanent Resident Aliens
Permanent Resident Alien (PRA) is defined as an individual who, though not a U.S. citizen, is granted the right to work and live permanently in the United States. Immigration and Naturalization Service (INS) refers to these individuals as “immigrants.” Refugees and others seeking political asylum also fall under the PRA classification. All Permanent Resident Aliens are entitled to the same rights, products, programs, and lending parameters available to U.S. citizens. Click here for further guidelines.


http://www.aegiswholesale.com/LoanLibrary/9n9dvpmobtfl_2/CG/CG_Underwriting_Guidelinesz.htm
 
Send a letter via certified mail to corporate headquarters, perhaps their legal office.

If it is a loan guaranteed by the government, contact the department of education in Washington DC.

What level of people did you talk to? Do not talk to a customer service associate. Go up the chain of command.
 
I would agree with Gilbert. Don't talk to uneducated loan officer. They usually do not have any education (if you consider US high school a good educational institution). Go higher, ask for the manager right away as soon as somebody answers. Who gave you this answer ("Your credit was approved, however because you are a foreign student, we need a Permanant resident or US Citizen guarentor.")? Bank? School??? Ask for managers or somebody higher fax number and fax them Freddie Mac/Mae Standard Underwriting Guidelines and tell them it is base for the law suit if nobody helps. Keep us posted ... I went through the same thing 2-3 years ago, but I fought and they folded right away and I got it. What did school tell you?
 
Update:

I spoke to my financial aid conselor, who spoke to the loan officer at Sallie Mae.

Long story short : they still won't budge. Have to be resident alien only to qualify for a student loan through them.

All I am trying to do is to finance my education - why has this to be so tough?
 
Originally posted by meLIBERTY2
Update:

I spoke to my financial aid conselor, who spoke to the loan officer at Sallie Mae.

Long story short : they still won't budge. Have to be resident alien only to qualify for a student loan through them.

All I am trying to do is to finance my education - why has this to be so tough?
Click to expand...

I suggested a solution before and i am not sure if you got it. If you have a good credit history and will graduate in less than 3 years, use the 0% option: Due to fierce competition and the ugly economy many credit card companies offer a 0 % interest rate for a year. I would apply for one of these if i were you. After a year passes, there are other credit cards who offer 0 % for transfer balances. You can transfer your accrued account into the new one and you can keep doing that a year after year. The banks have been offering the zero percent for almost 5 years now and i do not think they will stop due to their greed and ugliness. I know people who have gone through college doing that. They ended up with a balance of 10000 and neevr paid a penny for interest in the past 5 years. Now they are working and making good moneyso that they are paying off that debt. It is perfectly legal but make sure you cancel your old cards so that your credit history wont be affected. Too many credit cards are not good for your credit. I am sure anyone can say that this is not best way out of your problem but you have no choice. Do not let these bureaucrats defeat you my friend. Good luck
 
I would send a letter to the Department of Education to protest, with a copy to the sallie mae CEO.

Also, what form did you fill out for your loan? Can you link the form?
 
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