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Non-Tech : Sally Mae and the Student Loan Swindle
SLM 26.99-4.5%Oct 29 3:59 PM EDT
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From: Grandk12/21/2007 12:50:29 PM
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The student loan industry is as equally corrupt as the mortgage industry. The amount of lender impropriety that occurs at Sallie Mae is alarming. Consider what they do. They offer huge loans, many of them private with adjustable rates well over 10%, to ignorant teenagers. They strap our future generation with billions of dollars of debt.

The students cannot find jobs that pay enough to keep up with their interest that is accruing, let alone pay down principle on their loans. Nor do they even have a clue what any of that even means.

Then when the student defaults on the loan, it is Sallie Mae's own creditors who come after the student. So by the student defaulting on their loan Sallie Mae actually ends up making more money then if the student had simply paid their normal monthly dues. This is such a lucrative thing for Sallie Mae that they have been accused on intentionally letting students enter default just so they can squeeze them even more with high interest rehabilitation on their student loans.

Not too mention the fact that if the student defaults the government sports the bill. These loans are protected by the government and so Sallie Mae and other student lenders have zero risk.

Sallie Mae has lobbied for so many kickbacks and handouts that should have found their way into the hands of the students. But thanks to the greed of Lord and others like him, Sallie Mae has turned into a money making machine for a select few.

IMO, Lord is getting his just desserts and should be ranked up there with the likes of Mozillo (CFC CEO). The two of them can choke on their money they made of the hapless American public. This is capitalism at its most corrupt and we should see to it that this sort of garbage is dealt with accordingly.
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