Complaint Review: First Marblehead (Suntrust Student Loans) - Medford Massachusetts

I cosigned for a student loan for my daughter on August 14th, 2013.  We went through the Suntrust website and all subsequent pages we were on were branded "Suntrust".  We later found out that Suntrust does not actually do the student loans, they use a third party partnership named First Marblehead.   The loan was certified by my daughter's college on August 29th, 2013.

After waiting for over two weeks with no funds arriving at my daughter's college, I contacted Suntrust (or so I thought).  As it turns out, Suntrust does not do student loans.  Instead, they partner with a company named "First Marblehead".  To make matters even more confusing, when contacting customer service on the Suntrust student loan web site, I was connected to Tuition Management Systems, located in Warwick, RI.

After explaining to the person at the non-Suntrust customer service that my daughter had not received her student loan, I was told that there was a federally mandated 10 day period before Suntrust (or First Marblehead) could disburse the loan payment to her college.  The loan closed on August 29th.  10 business days would make the loan disbursement September 12th.  Suntrust (First Marblehead) told me the loan would not be disbursed until September 17th.  I asked why the extra 5 days, when my daughter needed the money immediately.  The Suntrust (First Marblehead, Tuition Management Systems) representative informed me that this was the college's specification.  This was the first lie that Suntrust/FM/TMS told me.  I later found out that it was their determination that they wait the extra 5 days, not the colleges.  Remember, there is a young woman attending school who needs the money.  This is the crux of the complaint.  No one cared.

I contacted the college on the 18th of September, only to find out that there was no electronic fund transfer capabilities between the college and Suntrust.  The check was going to go standard first class mail.

I called the college on September 22nd.  No check.  I contacted Suntrust's "partners" and was told that it would be necessary to wait ANOTHER 10 business days before they would issue another check.  I reminded them that there was a needful student involved in all of this.  They didn't care.  If the check was indeed lost, they would not issue a new one until October 1st 2013, more than one month after the loan had been certified by the college.

I called the college back.  Their financial aid representative contacted Suntrust and was told the original check did not get sent until September 25th.  This was almost twice the supposed federally mandated ten day waiting period.

Again, I called Suntrust (actually, all of the calls were to Tuition Management Systems. . . when I called Suntrust direct, their representative informed me that they really don't do student loans and there was nothing they could or would do to help us).  The assured me the check went out on the 17th.  I told them I just spoke to the college and they were told the 25th.  I was put on hold for quite a while.  They came back and assured me it was the 17th (when the college called back later that day, Suntrust's story had changed to reflect the 17th).  I told them this is now October 1st, it has been ten days since the check was mailed and it was time to issue a new one.  They told me (again) that the college wanted to wait a few days.  Finally, I got the representative to admit that it was not the college that wanted to wait, but Suntrust (this coincides with the first check being sent on the 25th).  When I stated that I wanted the new disbursement to commence immediately, Suntrust said they would not disburse the check until October 3rd.  They admitted this was for their convenience.  Again, the needs of their customer, a young woman away at college needing these funds, did not even enter their minds.

I did convince Suntrust to send the second disbursement via next day air so it could be received by the college on Friday, October 4th.

Of course, I am writing this on Friday, October 4th and guess what?  No check.  I called Suntrust.  I asked for supervisors and was refused.  I asked for tracking information of the "next day" check. . .unavailable.

Right now, we have no idea when or if our daughter will get her student loan that was certified by her college and guaranteed by Suntrust.  She is without any funds and no one as Suntrust/First Marblehead/Tuition Management Systems cares at all.

In conclusion, once you apply for a Suntrust student loan, you are at the mercy of organizations that have nothing to do with Suntrust.  Suntrust does NOT do student loans nor do they care about those who "bank" on Suntrust's name.  Suntrust has gone into a partnership with an organization that cares nothing about it's customers.  Lies are told, supervisors are unavailable, promises aren't kept.

I would highly advise, if looking for a student loan, don't trust Suntrust.