Forum Post: Occupying banks but what about Sallie Mae?
Posted 12 years ago on Dec. 7, 2011, 3:59 p.m. EST by zolamarie
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You're occupying WallStreet and other cities banking centers, but what about Sallie Mae? This company is unregulated and taking advantage of financially vulnerable students who are seeking an education. They sell the student's loan and break them up among their 70 companies. Their Forbearance program is a joke, their rules change constantly, it costs $150 to put a loan in forbearance for 3 months and they are taking advantage of students. Shouldn't we get to the root of the problem and take on Sallie Mae? We need to force them to conform to regulations.They are part of the larger problem too.
Thanks for posting this...Sallie Mae has me by the throat and now wants me to pay more. I am locked in at 8.25% and now owe more than 2x the original amount; I have not even been able to go back to school so I am paying for an incomplete education. I know that some have walked away from their loans, which is a drastic move though understandable. How can one pay, and what constitutes, a reasonable amount?
Exactly, they don't have any rules. I contacted my local congressman but he doesn't think he can do anything. I've reported Sallie Mae to the Attorney General and they didn't do anything, I've reported them to FDIC but since the loans were sold to Sallie Mae's corporation, the FDIC doesn't regulate them. So I've reported them to FTC but they don't contact Sallie Mae for single complaints. So now I'm contacting Legal Aid for help. The interest keeps getting higher and they put hidden fees in the bills. It makes me sick. I'm determined to take them on. They take advantage of students and the rising cost of college.
I admire your perseverance and determination... I would love to help; I am willing to take them on also, but not alone obviously. Let me know if you are interested and we will go from there!
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I saw similar cases as this guy while pre-qualifying people looking to refinance their homes prior to the major market crash that effectively devalued/raped America of its home equity, jobs and wealth (401K's, City and State pension funds.) As long as people were able to refinance on time during the run up in property values (which as we all know now was artificial) refinances with cash out in significant amounts were possible. Many parents assisted their kids in paying off their student loans in this way and quite a number of medical doctors and dentists with newer but profitable practices or positions at hospitals but who had homes and refinanced during the property boom from 2002 through 2006 were also able to 'c/o' (Cash Out), payoff the loans and dramatically reduce their original payment structure for what were and remain clearly exhorbitant loan pricing structures see example with others in the side bar here:
Jason-Sallie Mae horror story http://www.youtube.com/watch?v=iWzwZpqb9Wc followed by
Student Loan Scams 1 - Sallie Mae, Part 1 http://www.youtube.com/watch?feature=endscreen&v=B7OHrVKNIvw&NR=1 which illustrates the corruption/criminality involved with the US 'Hip National Bank'/(that is, you and me as tax payers.)
Part II
http://www.youtube.com/watch?v=usd5minT1GE&feature=related
Now that the real estate markets for most of middle America and other classifications of real estate are for the most part 'upside down' those with real estate or their families do not have the option of refinancing with cash out as a possibility as readily available to them.
Further compounding the problem and the biggest cause of the high fees is that these loans are 'unsecured' meaning there is no collateral such as a home or other appraisable item of value except perhaps proof of income from the applicant or having a cosigner with same.
I really feel for anyone stuck in this situation who chose to get a degree for anything but one of the professions (ie:those that through the particular degree with necessary licensure which provide the necessary expertise that would enable the individual to be an independed self employed individual-MD's, Dentists, Physicists,Engineers, Architects, Psychologists)
FYI for the record while in high school I was in all the college prep classes for careers in the sciences (and each year starting with my freshman year my senior class friends graduated.) Fortunately a 23 year old friend outside of school in my junior year who was doing 6 figures selling real estate got me into the game and even though I attempted to go back to the local community college for a short time after early successes in real estate it wasn't for very long.
After a semester of business courses what in years past when smoking was permitted during class was called by former students of those days 'high school with ashtrays' I decided that school at the business or 'B' school level was alot like an extension of high school and so I went back to work in commission real estate sales since the pace of work at that time could be so much faster since it was and is easy for me to self educate and so I never had the anchor of student loans.
In closing, many things need to change with respect to education and from the standpoint of a taxpayer watching these documentaries of Sallie Mae borrowers, having worked with clients and information available online comparable loan products such as 'Pay Day Loans' (with 199% interest in many cases once the borrower goes beyond one week in paying off the loan in its entirety) and Sallie Mae need to change or eclipsed by newer products or perhaps grant programs from private businesses and/or individuals.