60 Minutes covering student loan (SALLIE MAE) collection abuses tonight

[quiet.american]

Hi All,

A while back I posted regarding a site called Student Loan Justice.org and how it details the absolutely morally bankrupt way that SALLIE MAE is practicing wholesale extortion to collect debts on student loans, to the point of driving people into despair and suicide over impossible-to-pay exhorbitant collection fees and demands for, in some cases, quadruple the original amount of money owed.

Well, largely due to the efforts of one Alan Collinge (who runs studentloanjustice.org) to publicize the corrupt fat-cattery of SALLIE MAE, 60 Minutes is covering the subject tonight! -- from the CBS.com website:

SALLIE MAE – Making government-backed loans to college students has become so lucrative for the Sallie Mae Corporation that its stock has skyrocketed 2,000 percent in the last decade. But some students are left swimming in growing debt. Lesley Stahl reports. Janet Klein is the producer.

Where is all this money going? While former students are being extorted by Sallie Mae into indentured servitude for the rest of their lives, and even paltry Social Security checks are being seized by Sallie Mae's collection agencies, Albert Lord, CEO of SALLIE MAE, is bidding on purchasing sports teams, building his own private golf course, and awarding himself and his number two man literally hundreds of millions of dollars in salary and stock bonuses. And who is the biggest benefactor of Sallie Mae political contributions -- why House Leader John Boehner of course, at $133,000!

Who contributed $250,000 as a gift to the second installation of Bush (otherwise known as the 2005 Inauguration) -- why Albert Lord, of course!

If this is an issue that hits home for you, it's worth it to spend some time in the "what we can do" section at the SLJ site and then to contact your senators and congressional reps. Due to studentloanjustice.org's efforts, Sen. Dick Durbin has already shown a lot of interest in this issue and has scheduled a meeting with Sallie Mae to get some answers, and major media interest in this issue is growing. As the saying goes, there's strength in numbers.

[Faygo Kid]

1. Their executives are insanely overcompensated.

Sallie Mae is a piggybank for the GOP faithful. Most overcompensated top execs this side of the oil industry.

[quiet.american]

2. More on this, check this out --

Lord, who personally invested hundreds of thousands of dollars (on the books) to politicians and PACs involved with education legislation is probably the largest individual beneficiary. His compensation in 2000 was estimated by Washington Business Forward to be $2.3 million. However, in 2001, US News reported that Mr. Lords' compensation had skyrocketed to over $33 million. According to Fortune Magazine, Lord has made about $225 million in just the last 5 years, while his number two man, Tim Fitzpatrick (now CEO), has taken about $145 million.

Love your graphic, btw!

[Faygo Kid]

5. Thanks. Remember when the media might have made this front page?

Guess I don't, either. Thanks for posting, and keep reminding us. This is a terribly underreported story, and jaw dropping, even in the GWB era. Greed is such a waste. Sorry, Bush Pioneers and Sallie Mae execs, here's a news flash: You are going to die someday. No matter what you do. Time to change.

[quiet.american]

17. You're right, I couldn't remember!

And oh, to be a fly on the wall when the day of reckoning comes.

[Us vs Them]

Durbin to introduce bill: Reverse the Raid on Student Aid

Durbin's new legislation, known as the Reverse the Raid on Student Aid Act, would cut in half interest rates on federally supported Stafford Loans and on parent loans. It also would increase Pell Grant awards and restructure consolidation options so students could shop around for the best interest rate.

The bill amends the Higher Education Act of 1965. Earlier this year, Congress approved a $12 billion cut of federal student-aid programs that Durbin charged was designed to help finance tax breaks for wealthy Americans.

Durbin's legislation, which he introduced to the Senate shortly before the start of spring recess, would cut the proposed interest rate on Stafford loans from 6.8 percent to 3.4 percent and on parent loans from 8.5 percent to 4.25 percent.

[Greyhound]

7. Does his legislation address the accreditation issue?

I believe it absolutely essential to repairing the program. Of course, socializing education would be the simplest solution.

[deFaultLine]

85. Touche'

This is perhaps the most insane part of the deal, ruining a credit rating is one thing. But denying someone the ability to get a good paying job in order to pay off the debt makes no sense at all; it's criminal and a bad business model.

I can only conclude that the people running this scam are insane.

[quiet.american]

8. Thanks for the reminder -- photos of students "storming" Boehner's office

From ourfuture.org:

You can still petition Rep. Boehner to Reverse the Raid on Student Aid. We'll deliver the next round of signatures in events planned for later this year.

Our pressure on House Majority Leader, John Boehner (R-OH) continues. On Wednesday, May 3rd, supporters pressed Boehner to correct his recent actions that put college further out of reach for millions of American families.

[cornermouse]

3. You should post this in the Missouri forum.

I believe our idiot governor is setting up to sell the state student loan agency to Sallie Mae.

[Faygo Kid]

10. Well, Show Me!

How could I resist? Fight the power. The buck stops with all of us who have had it.

[quiet.american]

13. That's bad news, SALLIE MAE is trying to become Microsoft of student loans

They're gobbling up the market as fast as they can, and everybody's getting paid -- except their targets who are barely left with enough to live on as they're browbeaten, threatened and extorted every which way so that Albert Lord can build his own private golf course. And what do the minions who do his dirty work make? According to one collection agency minion I spoke with -- $13.00 an hour.

[deFaultLine]

84. hold on now

I know it's fashionable to bash Micro$oft, but the fact is that they are far more ethical than Sallie Mae. In all time I have had any Microsoft product, I have had no problem with support from them. I also believe that if Microsoft had not existed, PCs would probably have ended up costing 3 times as much as they do now and we would be complaining about Apple instead.

Now here's an irony that you might think about, since in all likelyhood Sallie Mae uses a lot of PCs run on M$ products, it would stand to reason that Bill Gates has some influence with them. Further, since many college grads get out with these huge debts to pay, chances are good that many of them are not able to buy Microsoft products because they simply can't afford them. In other words Microsoft might consider that they are losing money in the deal.

Additionally, I would think that Microsoft might be interested in as to why they can't hire American workers since they have to hire foriegn born workers to help run the company. The fact is that many talented people are being denied an education simply because they can't go to college unless they use the loan package and they are unwilling to borrow money to do this.

The whole financial aid system is a mess, it's not just the loan system, it's the entire cost of college education. Tuition is out of control and unrealistic. It's outpacing inflation by a long way and needs to be reversed. The easiest way to make college more affordable is to roll back tuition to at least a third of what it is now and to end a lot of the fees that are now being charged by departments to help fund classes. Tuition is no longer covering a lot of classes.

It's especially bad in the sciences where you will probably spend at least 2-3 years more in school to attain a solid degree and also will have to shoulder lab fees that are tacked on to cover course costs.

The end result is that the technology sector is being starved for new talent. Who in their right mind would want to go to all that effort and get out with a huge debt and then work for peanuts? Best bet is to get into business/management quickly after school, make a pile of money and live in blissful ignorance.

[gulfcoastliberal]

4. Yikes. I have an $11K loan. K&R

It's unsubsidized; a career training loan. It hasn't been distributed yet -1st dist next week.

[quiet.american]

12. Whatever you do, watch it like a hawk and don't let it default! n/t

[deFaultLine]

80. Pay it off now!

Don't wait for them to tack on fees etc, if you wait for them to tell you what to do, they will turn your 11k into something ridiculous. Also, the burden of proof on your loans is on you, get your paperwork together now and start paying it off now. Don't assume that they will be honest with you either. Do what you can to make a lump sum payment if possible, use credit cards if you have to since the rates that they charge are in fact lower than what Sallie Mae will give you.

[Greyhound]

6. If this issue ever gain traction, I advocate a general strike against them

When millions of debtors just refuse to pay what can they do? Starve the beast.

[quiet.american]

9. Not a bad idea! n/t

[derby378]

37. Isn't that when collection agencies turn into repo men?

Seizing cars, raiding bank accounts, garnishing wages, etc.

[Greyhound]

78. Not if you now how to play the game.

Garnishing wages is the biggest hurdle, all it takes is a court order and your employer's cooperation, but there are ways to avoid this. Seizing private property is trickier because of the powerful interests on the other side. In any case, it can be done on an individual basis, but massive refusal is how to get things to change, IMO.

[TX-RAT]

81. Yep, not a good idea.

[pdxbecca]

11. Yikes! I need to watch this

as I have Sallie Mae loans I have been having trouble making payments on. I knew they were bad, but reading this really concerns me.

[liberalhistorian]

14. Debt collectrolls are SCUM!

ALL of them, especially medical ones, but ALL of them! I hope there's a special spot in hell for them.

[HeeBGBz]

15. Yeah, I'm one of those turnips they are bloodletting

My original loan was about $4000. So far they've taken one tax refund of about $3500, two of about $500 plus they are garnishing my wages. Yet they still say I owe a couple of thousand. They never send a receipt of payments or what has been paid, they just keep on taking.

[quiet.american]

16. Exactly, HeeBGBz! There's no coherent paper trail.

According to what you just wrote, that loan should have been paid off by now. But I think the key is in the collection fees charged -- they never stop!

My latest statement says I owe $3.39 in interest and $3,669 in collection fees! And that number never changes. Every month, no matter how much I pay, it's always over $3,000 in collection fees!

[HeeBGBz]

19. It's gotten to the point that I HAVE to be a waitress now

Because I survive on tips. Anything that is paid to me through an actual paycheck is subject to garnishment.

[quiet.american]

21. O.M.G. -- that is scary. And wrong. O.M.G. n/t

[incapsulated]

18. Will watch, thanks

It's about time these loan sharks were exposed.

[suziedemocrat]

20. I used to work for them as a contract programmer

Everyone is VERY Republican!!! Also - they tried like crazy to outsource as much of their IT department as possible. But I heard it has not worked out for them very well - turns out they had to hire A LOT more testers and QA people and so it wasn't really so cheap after all.

[quiet.american]

22. Aaargh. Just.... arrgh. n/t

[GrumpyGreg]

23. OK,I give up ! Why shouldn't someone pay back a loan on time?

If they paid it on time there would be no need to try to collect it.

[quiet.american]

25. In an ideal world. Things happen and SALLIE MAE compounds the problem.

People do make payments, and in most cases, completely pay off their loans. However, SALLIE MAE adds on fees that make it impossible for an ordinary person to pay off the bloated figure SALLIE MAE comes up with, with no explanation of where the figure comes from. Take a look at a typcial experience with these government-protected loan sharks:

The Austins

My husband took out a Heal loan for podiatry school in 1982, 1983, 1984 totaling $39,000. We have paid Sallie Mae over $88,000. In the last three years due to illness, bad luck and decisions, my husband's work has declined substantially. He has exhausted his deferments, and now his loan has accumulated a tremendous amount of interest. This was a $39,000 debt that now will have cost him well over $223,000 and more. All his government student loans have been paid in full. This particular loan was originally obtained by a saving and loan that went bankrupt and then was later sold to Sallie Mae. It is not considered a federally backed student loan. We have diffficulty, but are able to pay our other debts such as food, clothing, car payment, credit cards, etc. When my husband stopped paying he was making payments of $700-800 a month. We presently do not own a home, but plan on purchasing one soon. He is apprehensive about filing bankruptcy on other debt that we can pay. Also, you must file a student loan "undue hardship" separate from a bankruptcy anyways. How do we find a lawyer to do this, because everyone I have contacted pretty much states "student loans can not be included in any bankruptcy". Personally I dont think they want to bother even in legitimate cases. We have made several attempts to work out arrangements with Sallie Mae, to no avail. Their only recourse is for him to take out another loan, with of course all this additional acrued interest. If that is our only recourse, we will be paying $500,000 on a $39,000 debt. He is now 53 years old and this is getting scary.

[high density]

29. It sounds like The Austins don't understand how credit works

Good luck getting a mortgage from a bank if you can't control and pay off $39,000 in student loan debt over twenty years. $700-800 a month for a $39,000 loan?? How freaking long was it deferred? Sorry but they're not telling us something here.

[quiet.american]

31. This is not an isolated case.

That's what makes it a problem with Sallie Mae's business practices. C'mon, they've already paid $88,000 on a $39.000 loan, and Sallie Mae wants almost $500,000 more? That's sick.

[Thtwudbeme]

26. Not everyone is the perfect angel you are, dear. Some people make

mistakes.

I know; shocking as hell to be walking the earth with these trashy humans--it must be quite the burden for you.

[suziedemocrat]

45. I'm convinced they want a permanent underclass of near indentured servants

A middle class is a very bad thing to the greedy, immoral rich. Middle class people have options, choices and too much power to be easily manipulated into accepting living, working, business conditions that aren't fair.

Several things made me come to this conclusion.

1) I read a tourist book about Chile and the book remarked that there used to be the very rich and the very poor in Chile. However, as the economy in Chile improved, living conditions for the very poor were improved to the point where they could sometimes afford old cars and second hand televisions. The very rich did not like this because they were happy with the large, visible difference between the classes that made them instantly stand out as rich. I think it is unfortunately a human condition that also affects the United States.

2) Near the the end of the 1990's when the economy was roaring I watched a CEO being interviewed on CNBC. He complained non-stop about how awful the too low unemployment rate was for businesses. He said it was impossible to keep workers because they could get a job across the street for more money. He said "Something has to be done about this!".

3) They are cutting federal funding for schools and property taxes are going through the roof (mostly to pay for schools.) But - what about the areas where the property is not worth very much - I guess those schools will have to make do with next to no funding.

All kinds of things point to a new, but very common, business model of screwing the customer into paying you forever for next to nothing. Make sure you read the fine print on the credit cards, and other things you sign up for - or you might end up paying for that toaster forever. Also, as a college graduate - my advice to young people is if you have to take out loans for school - don't bother. I graduated from a top 10 business school and I think my education was pretty much a joke. If I were young now - I'd wait until I knew absolutely what I wanted to do and then I'd only take the classes I could afford. (However - colleges are charging so many fees per semester you are enrolled - that to take one class, even at a public college, ends up costing a fortune.) When the country has no Doctor's maybe they'll wake up. Probably not though - because the rich will always have doctors. This is CLASS WARFARE - No doubt about it!

[quiet.american]

49. You're not the only one, too. Check this out from 2004 --

CBSNEWS.com
Income Gap Of Poor, Rich, Widens

Over two decades, the income gap has steadily increased between the richest Americans, who own homes and stocks and got big tax breaks, and those at the middle and bottom of the pay scale, whose paychecks buy less.

The growing disparity is even more pronounced in this recovering economy. Wages are stagnant and the middle class is shouldering a larger tax burden. Prices for health care, housing, tuition, gas and food have soared.

[high density]

27. Because banks are supposed to lend money for nothing?

I dunno... I'm no fan of Sallie Mae or banks in general, but my student loans are serviced with them. They have a very efficient online website that allows you to make payments and they're usually credited within 3 business days. They seem to have a crapload of different payback schedules as well, so it's stupid for borrowers not to work with them and find something that fits their current income situation.

[quiet.american]

30. Not everyone's life goes like clockwork.

And Sallie Mae doesn't want to hear jack once they've got the grip on you if your loan is defaulted. Many have actually paid off their loans and interest, but Sallie Mae then sets the terms of repayment so high that it's impossible to pay off their demands. and there's never a coherent explanation as to where they get the figure they're demanding payment for.

[high density]

32. That's why you talk to them before it goes into default

Any bank or servicer is going to be pissed off when the loan goes into default and will sell it to a collection agency. THAT is not the time to be trying to work with them. I also don't understand how you "pay off" a loan and then say it's impossible to "pay off their demands?" What demands? The 10-day payoff amount is listed right on the "Manage Your Loans" website and seems rather straightforward to me.

[sandnsea]

36. And sometimes it's not enough

Sometimes life just costs a whole bunch more than the paycheck will EVER cover. Then they come along and take the tax returns, and then sell the loan to another agency who adds that same amount right back on to the loan. It's a revolving cycle, take the tax return to pay off the fees, sell the loan, attach new fees, take the next tax return, and on and on it goes. It's worse than credit card companies or any other sort of collection tactic I've ever seen in my life.

[high density]

44. right

So before you take out thousands of dollars in student loans you stop and think about how you're going to pay them back. I know people get f--ked over hard by banks when they're already in the worst shape possible, but the fact remains that most people have no problem managing their credit.

[sandnsea]

47. And so what

The point is that the same circumstances cause people to default student loans as to have problems "managing their credit". Illness, job loss, outsourcing, etc. People are getting fucked over MORE by the student loan collection companies than the banks or credit card companies ever dreamed of doing. THAT is the point.

[quiet.american]

48. "Most people have no problem managing their credit." Huh?

From NPR: Personal bankruptcy soared to record levels in 2005, with more than two million Americans filing for bankruptcy protection.

The issue here though, is SALLIE MAE's collection practices. Currently, they seem to have carte blanche to deprive an individual of the means to ever actually pay them back; this is the crux of the matter.

[high density]

50. OK so out of 200 million adults in the USA...

1% of them filed bankrupcy? I think "most" is a decent enough word to cover 99% of us. I agree with everybody that somebody needs to regulate these collection agencies, but I guess my problem is that many people in this thread forget that banks are money making businesses and they will get pissed off when you don't pay them.

By the way, has anybody seen the new "Paypal" of loans, Prosper? http://www.prosper.com / If you default on those loans you'll still have a collection agency after you, though... IMHO it seems kinda risky from a lender standpoint.

[quiet.american]

52. I think you've made a wrong assumption.

Everybody here knows how credit works, the problem is with the business practices of Sallie Mae, which pratically no other lender is allowed to get away with.

And if most people knew how to manage their credit, Sallie Mae would have to look elsewhere for their obscene profit.

[quiet.american]

38. Forget the website, it does not apply when you are in default.

Read some of the stories on the SLJ website. You'll see that many made steady payments and paid off the original amount of the loan and the interest, but somewhere along the way missed payments or let the loan lapse and found the amount they owed doubled, tripled and quadrupled without any explanation of where the additional amount came from.

Those who are in debt to Sallie Mae are not asking for discharge or forgiveness of their loans, but for an amnesty to pay off what is currently owed with a reasonable interest as stated by the Dept. of Education's own literature, that the debtor is to be allowed to make reasonable and affordable payments, not have the lifeblood squeezed out of them by outrageous collection fees -- which is what the bulk of the charges seem to be.

Van Ru, which is one of the SALLIE MAE collection agencies, has been successfully sued more than once over their debt collection practices, which they got away with for a long time, because there is no oversight on this.

[suziedemocrat]

53. OK - I give up - why would someone have an unwanted pregnancy?

Just don't have sex until you're married - or use birth control - no need for abortions. Don't worry about rape - just don't walk home alone on dark streets.

OK - I give up - Why are people living in a desert and starving to death? Just move where there is food. Problem solved.

OK - I give up? Why do people in New Orleans need assistance for living below sea level? Move to higher ground already - what's the problem?

OK - I give up - why should people declare bankruptcy? You should just pay back what you borrow.

OK - I give up - why should I care about anyone who has a problem I don't have when they could have easily avoided the problem if only they were as perfect as I clearly am!!!!

The difference between Republicans and Democrats used to be that Democrats had compassion for other people. When did that change?

[GrumpyGreg]

55. Have you ever heard of personal responsibilty?

I've always enjoyed taking care of myself and we were very poor in my childhood. Very poor. You just work and work and do without anything that is unnecessary.

[annabanana]

59. You may have answered your own objection to

Grumpy's post!

(That is STILL the difference between the two!)

Great Post by the way.

[TX-RAT]

82. Funny how that works.

[PsN2Wind]

24. Not condoning abusive collection practices

but IMHO too many young people seem to think student loans are free money. They are loans, meaning that someone was expecting to be paid back.
Drive down by your local university and look at the number of cafes, bars, coffee shops, etc., and you will see where too much of these loans is being misspent. If, instead of the money being given directly to the student, it was instead a credit for tuition and at the book stores, student cafeteria, etc, fewer students would be in financial difficulty and subject to these practices..

[quiet.american]

28. Please visit SLJ's site and read some of the stories.

You may have a point about young people blowing money, but then, young people are a prime target of predatory lending. There is very little comprehensive education to prepare a young person to properly manage their money, and youthful optimism about getting high-paying jobs after graduation probably feeds into the problem, too.

But if you look at some of the stories on the studentloanjustice.org site, many are not told by 17-yr. olds who bought too many espressoes, but by people who were trying to get a leg up in life and it just didn't work out.

But does this mean they should be deprived of their pursuit of life, liberty and happiness by a corporation that would be the first to come begging for our tax dollars to bail them out should they falter?

[PsN2Wind]

33. My only point was

not that there aren't abusive practices in collections but that a loan is a loan. My only student loan was a small one and many years ago now but I've had many home mortgages. My lender would not accept the excuse that I borrowed more than I could pay at my current job because I was expecting to get a better one but didn't. And certainly wouldn't accept the excuse that I had to spend too much money going to Cancun for a couple of weeks to be able to pay him.
These students obviously need loan counseling prior to receiving their loans and it needs to be impressed upon them that they WILL be expected to repay, on time, and in full.
But I still feel the better course would be not to put all the money directly in their hands.

[quiet.american]

41. There are many improvements to be made and that could be one.

The main point is that these collection practices by Sallie Mae are ruining people's lives now. And there's currently no recourse.

[sandnsea]

34. Just feelin' the love

and tolerance, aren't you? Bless your heart for having the guts to post this, lots of people need this info. If a credit card company was doing what the government was doing, people would get it. I don't know why they go brain dead because it's a student loan. Be out of a job or in a low paying job for a year or two or five, and watch your student loan triple and there's not a thing you can do about it. Some people just don't get that sometimes there's NO extra money to pay ANY BILLS. At least if you're low income you can still bankrupt a credit card.

[quiet.american]

43. :) :) :)

[cornermouse]

35. That's really not quite accurate.

If I remember correctly, I took the check to the cashier who deducted the total for classes and books and then IF there was anything left over, I took it and spent it wildly on lavish things like the electric bill or gas to get to class since my kids and I lived in another town. The money was never spent in bars, coffee shops, or cafes. It could have been different for kids fresh out of high school, but I believe that we expect kids that age to make mistakes and learn from them.

[sandnsea]

39. Especially not now

There isn't any money left over anymore. I took one $5,000 loan for my son to go to school and that was on top of the loan he took. That was just for tuition, books and dorm fees. The cost of school is just insane. When you look at the salaries most people make, I'm not even sure it's a good investment. It wasn't like this 20 years ago. People who aren't going to college right now just don't get it.

[cornermouse]

42. I agree.

If I remember correctly, the loans have a cap on how much you're allowed to ask for and if you're lucky it covers tuition and books. I wouldn't even want to think about dorm fees.

As far as it being a good investment, if you consider the rate of outsourcing and lowered wages that they're offering on top of the cost of a semester at a 4 year institution (without going for any of the better paying advanced degrees such as engineering, doctor, dentist). The accrued debt for a student loan is frightening, especially when you think about the fact that these kids are probably going to be carrying a car loan and maybe even a home loan as well.

[girl gone mad]

58. Not only that, but today's graduates, often...

strapped with huge student loan debts, are expected to compete against people who were given a free education. Not only is the cost of living in places like India lower, the cost of education is lower to nonexistant as well.

[Deja Q]

40. You're right. Loans for education are bad.

(especially when the jobs aren't there after they graduate)

[thethinker]

46. I read about a case

I read about a case where they were taking a man's disability check because he owed a student loan. I can't find a link, but will look for one.

I am sure the man did not plan to need disability when he took the student loan. Life happens in spite of our best laid plans.

[quiet.american]

51. 60 Minutes on now. n/t

[serryjw]

54. Alan's story is the best

he can't pay back the loans becuase they have ruined his credit to the point he can't get top secret clearance for an aerospace job....talk about a rediculous circle jerk

[quiet.american]

66. This is what's most objectionable.

The way Sallie Mae is doing business is depriving a person of the means to make the money to pay them back.

[moondust]

56. Woman with $260,000 in college debt?!!

That started out as $60,000?!!! Jeeeeeeeezus!!

[quiet.american]

64. Hello! And her major is film school? She'd better sell a script fast!

I woke up thinking about this woman this morning. She's paying back $260,000 on a $60,000 debt! And she hasn't even missed any payments!

[Bushknew]

57. Add outsourcing to this mix ….

While an American university education is becoming more expensive its value
is going down.

Very few professions are immune to outsourcing.

Read the book "A whole New Mind" by Daniel H Pink.

Can’t remember where I read the magazine article but doctors in India are taking away a lot of well paying research and analysis jobs that employed American doctors and
China is producing more Engineering graduates than any other country in the world.

These companies say that the outsourcing of high end jobs are necessary
because Americans educated in American universities have inferior math,
science and engineering skills as compared to foreign educated university
graduates.

BULLSHIT

If that were true, these foreign educated university graduates would be paid
EQUAL or MORE than American university graduates but they are not. They
are paid well BELOW what an American graduate would be paid.

The truth is that the rich just want cheap educated employees.

It pretty much renders an American University degree useless.

Why do these rich people want to destroy the American dream?

[quiet.american]

65. Because their dream is our nightmare.

Unleashed, we see what an ugly breed the hogs at the trough are, don't we.

Thanks for the tip on the book.

[Peter Frank]

60. K & R...

The noose tightens on academic freedom. Do you really think this regime wants to encourage education; when it can stifle free thought, while making indentured servants out of students?

[quiet.american]

68. Good question.

As long as the cronies get paid, everyone else is on their own.

[Peter Frank]

76. Yeah - "No Financial Guild Left Behind"...

...pretty much covers the reality here.

[Chalco]

61. Good loan program

In the 60 minutes segment, they mentioned that there was a good loan program but that the colleges steered students to Sallie Mae because they got a cut. What was the name of the good loan program?

I'd like to know for my daughter.

Thanks.

[quiet.american]

67. Hi Chalco -- it was the "Direct Loan Program."

[Chalco]

70. Thanks, mucho! nt

[BigMcLargehuge]

62. I've communicated with both NH senators

and my representative about Sallie Mae and this site. I received the following from one of Jeb Bradley's staffers.

(content edited to remove personal information)

On Mar 30, 2006, at 11:22 AM, Jones, Marti wrote:


Hi Jeffrey: - I have in my notes that I called you last week but thought I would try emailing you as well. The web site you forwared is not an official federal web site. People with student loan problems (with federal student loans) can contact our office. You may also wish to call the Federal Student Aid Information Center at 1-800-433-3243 to see what possible options you have with your loan. If you still have questions, please feel free to contact me.

-----Original Message-----
Big McLargehuge
Sent: Thursday, March 30, 2006 11:36 AM
To: Jones, Marti
Subject: Re: Your inquiry re: student loans

I wasn't really forwarding that information because of a personal problem. Senator Smith helped me get some leverage with the student loan people about five years ago. I am struggling with student, but not the extent of the people relating stories on that website. I brought it to your attention because it is an increasing problem, especially with the cost of higher education increasing years, and in some cases, more than yearly.

If you take a few minutes to read through the personal stories on that site, you will see the hardships that aggressive collection brings to Granite Staters and all Americans.

I would like Congressman Bradley to look into the legislation discussed on that website, and if possible, bring the issue to the floor for discussion. There is a great debt problem in the US, and recent bankruptcy legislation has given tremendous leverage to creditors.

Thanks for your time.

Big McLargehuge


Marti Jones

great...I will pass it on to our leg. person in DC who deals with education issues! Thanks for bringing this to our attention.


Ms. Marti Jones
Constituent Services Representative
Congressman Jeb Bradley
33 Lowell Street
Manchester, NH 03101

[quiet.american]

63. Thanks, Big, this is just what we all need to do.

I am putting together another mailing to my senators this week.

Even a prominent Harvard professor of economics recognizes that something is very, very wrong with the way Sallie Mae is doing business. I believe her phrase was that students taking out loans from Sallie Mae are served up like "turkeys on a platter."

[sendero]

69. I'm a big proponent..

... of paying back what you borrow. But I'm an even bigger proponent of limiting "collection fees" and other nonsense to something that would not make a loan shark blush.

Interest rates should not be changed unless market rates have (when loan is in default).

Collection fees should be limited, most of them are completely ridiculous, like charging someone $1000 for making a phone call.

I wonder when Americans are going to have enough of this bullshit and do something about it.

[stepnw1f]

71. I'm Fed Up and Want to DO Something About It

because I'm stuck.... and as interest rates shoot up, and with my wages staying the same, I'm screwed, unless of course, I can find a job that pays me more. But how long will that last as I play catch-up! The system is fucked up, and I really don't want to be an indentured servant to these money lending pricks anymore.

[eppur_se_muova]

72. Thank you thank you thank you! I missed the previous post, really glad to

see this. I HATE dealing with Sallie Mae. I just knew they were up to no good, but didn't know how to find out just what. This Web site has the kind of info I need.

Wish I had seen this last night, before air time.

[quiet.american]

73. Howdy, Eppur -- you can still watch the video here --

Watch the video/read the transcript here:

CBSNEWS.COM:
Sallie Mae's Success Too Costly?
http://www.cbsnews.com/sections/60minutes/main3415.shtm...

[eppur_se_muova]

74. Well, double thanks for the links! nt

[Bushknew]

75. Links!!! thanks nt

[quiet.american]

77. :) n/t

[deFaultLine]

79. wow

I have been having difficulty in dealing with Sallie Mae, I'm in grad school and have tried to stay in communication with them regarding deferments until I can complete my degree. Thus far I have to give them and F for competence. I have faxed them forms and have had them lose them or have been given the wrong number and several other excuses/obfuscations about what happened to my forms.

I still don't live and extravagant lifestyle and as an undergrad I lived very frugally, I worked at jobs and had other financial aid to help. Despite this, I had to take out loans to help pay for school and it got worse when some clerical errors were made that prevented me from receiving a full package during some periods of my undergrad career. I simply took out a loan when I could not pay for tuition in any other way.

Going out to for dinner, seeing movies or even drinking espressos was/is out of the question and despite my cost cutting efforts, I had to take out loans just to make ends meet and pay for the skyrocketing costs of school. (Which I may add got considerably worse since 2001.)

Now I find out that I've essentially signed over my life to a government subsidized loan shark...

The interest is outrageous, I have a hard time believing that a government subsidized organization is charging this much in fees and interest.

I would also say it's inaccurate for anyone to say that students are just blowing loan money on frivolous expenditures. The cost of education and housing are just too high to blithely pass off loan debt as poor planning by students. Consider the time and effort to become an engineer...it's not easy and the time it takes to study precludes taking a full-time job to pay for school. You end up either getting a loan or finding an easy major like business that allows you to spend a minimal amount of time studying and more on a job to pay for school.

If you are considering using a loan to pay for school... don't.

[Runcible Spoon]

83. I know that Sallie Mae and Fannie Mae are just huge loan sharks ......

and probably run by old rich white repuke freepers, but I always conjure in my mind this image of two old spinster sister harridans who do nothing all day but knit horrendous polyester couch doilies and send out bills for loan repayments. I imagine they are those really annoying old rich fart types, who never spend a nickel of their money and just hoard it under the mattress, along with all those slivers of old soap....