On the heels of more than 50,000 people signing an online petition asking Sallie Mae to stop charging fees for late student loan payments, the company has made the decision to update its forbearance policy for private education loans.
"We have been giving it careful consideration for some time, and will now apply the good-faith payment to the customers' balance after they resume a track record of on-time payments," Patricia Christel, spokesperson for Sallie Mae, said in an email to Credit Union Times. "The change will be retroactive to private loan forbearances granted on or after Jan. 1."
Sallie Mae is linked to around 500 credit unions via its student loan referral program, Smart Option Student Loan.
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