Friends in High Places Deliver Big for Sallie Mae Behind the Scenes

[Wednesdays]

This has the odor of the US Attorney scandal all over it!

(I thought this might qualify as LBN, but to play it safe I posted it here. Bolded emphasis mine.)

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Friends in High Places Deliver Big for Sallie Mae Behind the Scenes

Education Department Official Provided Key Help to Sallie Mae, his former employer, on Eve of Company's Privatization
Stephen Burd | May 9, 2007

The Chronicle of Higher Education published an explosive piece on Monday providing greater detail of how the revolving door between the Bush Administration and the student loan industry has put financially needy students in harm’s way. (Disclosure: Higher Ed Watch staff used to work for The Chronicle.)

The article reveals, for the first time, that Matteo Fontana, an Education Department official who had worked at the student-loan giant Sallie Mae for 11 years before joining the agency, made “a controversial and high stakes legal ruling” in December 2004 that greatly benefited his former employer the day before the company officially broke its ties with the federal government and became a private corporation.

In his December 2004 ruling, Mr. Fontana rejected an opinion offered by Department's Inspector General two years earlier that a lucrative arrangement that exists between Sallie Mae and USA Funds, the country's largest student loan guarantee agency, violated the law and needed to be severed in order to protect borrowers.

Sallie Mae's relationship with USA Funds dates back to 2000 when Sallie Mae purchased the guarantor's parent company, USA Group, which had been one of its largest competitors.

more at:
http://www.newamerica.net/blogs/2007/05/friends_in_high_places

[smtpgirl]

1. Yep, I got screwed by USA Funds

WILL NEVER HAVE A SCHOOL LOAN AGAIN.

I had the terminal screw from 1992-2005, NEVER AGAIN.

I will pay as I go, or go through my place of employment for tuition reimbursement.

Maybe a class action suit should be filed against the mother fucker of all Sallie Mae.

What really sucks that USA Funds AKA Sallie Mae never gave me back me $1,083 credit, they never produced the paperwork that I had copies of, but I had it, and it wasn't good enough!!!!

Because "They did indeed credit my account for $1,083."

I will get that money back some day, some how.