Sallie mae debt being paid by insurance; what does that mean?

I was effected by both hurricanes Katrina and Rita here in south La. My finances were/are in ruin. I've managed to hang on to my home and car so far.

I am very late on my student loans with Sallie Mae, who has been very rude. I'd applied for and was approved thru my employer for a federal program that gives credit off of your loan for each year worked at a rural indigent hospital in need of nurses. I've worked here 14 yrs.

I was told by SMae they do not recognize this though they are familiar with it

* In checking my credit report I see under Sallie Mae it says 'debt being paid by insurance'.

Any idea what this means? What insurance?

I have not been notified of any changes in my insurance except my homeowners going up first $500 a yr because my credit dropped, $400 a yr due to my hurricane claim-only one I've had with Horrible, uh, Horace Mann.

Now another $100 a mo. since the state had to pay for those who had no ins. it's passed on to us who have!

Thanks so muc

Sallie mae debt being paid by insurance; what does that mean?

The insurance that Sallie Mae is talking about is insurance on the student loan, not on your home or your car. It is insurance that is included on many student loans, and was probably paid for by the fee that you paid up front when you got the loan.

On your credit report, this notation is basically saying that you aren't paying your loan at this point, so that is probably part of what helped your credit score drop, which, in turn, caused part of the increase in your homeowner's insurance premium.

Sallie mae debt being paid by insurance; what does that mean?

I would check with Sallie Mae, I would assume that they are using some type of reporting code inaccurately.