Good work, Higher Ed Watch!

It really, really, stinks that Loan to Learn's CEO, Catherine Reynolds was a member of Margaret Spellings Commission on Higher Education. Here she is taking advantage of the fact that the government doesn't do enough for low-income and middle-income college students, and that the government has held steady or dropped (for 2006-2007) the value of Pell Grants, and she rushes into that void by offering 16% loans. How blatantly sick and transparent of her.

FRIENDLY WARNING: If you haven’t already been sucked in by Loan to Loan, STAY AWAY! Hello, When we applied for this loan our income was very low. However, we were two students with a future worth investing in - as well as the ability to pay the loan on a monthly basis. The applicant (my husband) had a 4.0 cumulative GPA and letters of recommendation from the head of the Honors Program as well as Department Deans in both the Arts and Sciences, with paid research scholarships offered, as well as income (and experience) from tutoring higher level math classes, physics and chemistry. The MANDANTORY co-signer was supposed to be a back up, someone who is willing to back-up their faith in the ability of the LOAN ORIGINATORS to pay by guaranteeing the payment. Instead, they have turned my father, our co-signer, into the primary contact for every notice of every kind. They have ignored our many requests to send us our loan information directly, they have been provided updated information continuously. Instead, my father has been bombarded with loan information, including notices that we are late (when we are and when we're not), there's a possibility we might be late, etc. Although we have indeed been late with our payments by 15 days (due to some extreme circumstances over the summer), we have never been 30 days late, thus, by contract, effecting my father. The last 2 months we have had Loan2Learn set up for autopay from our checking account, these amounts HAVE been deducted, precisely on time, and yet they continue to send my father notices, apparently now by a fax that we have yet to see. They not only send ALL loan information to my father, DESPITE our repeated requests, the few copies we are provided with say that we are late after the payment has already been made, usually by phone or direct withdrawl! They have even lied outright, telling my father that we were ignoring L2L's phone calls when we hadn't received any phone calls or messages and they were in possession of our current phone number. This constant harassment of the co-signer has been the last straw in a very strained relationship - just at the moment when he was reaching out to indicate his support! Their customer service sucks, they don't seem to communicate between departments (one dept will CONFIRM receipt of payment and then another dept claim there is no indication of pymt!), they harass and even lie. Their loan is structured so that if you are 15 days late on a $55 loan payment (supposedly, the rate changes nearly every month), that payment turns to $80+ (apparently in an attempt to make you later still and thus be able to charge you more). I hate this company, it has needlessly ruined my relationship with my father, besides sucking in every other way possible. Sincerely, Wife of Unfortunate Loan to Learn Customer

In Feb 06 I took out a large loan from Loan To Learn, when I realized I didn't have enough money to afford grad. school.  I didn't have enough free time to get a 2nd job since I was a full-time student and a TA, and a loan was my only option.  As of August 07, I have only had 1 or 2 late payments, yet my principal balance is almost exactly the same.  In fact, after the first 6 months, the balance was HIGHER than it was to being with, even though I made each payment on time.  The minimum payments range from $140-185 a month, and they are almost completely interest.  Last month alone, I paid 166, and 146 was interest.  That is far too much money.  DO NOT USE LOAN TO LEARN, unless you plan on spending 300 a month to pay it off.