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Take a Swing at Sallie Mae
MASSPIRG's List of Grievances against Sallie Mae
Students are
overly-reliant on loans to pay for college. Facing debt, qualified high
school graduates choose not to attend college. Once in school, students
have to work more hours to pay down that debt. And 65% of graduates
average about $25,000 in debt.
Sallie Mae, the largest
student lender in the country, profits from deep student debt while
supporting policies that further abuse students and taxpayers.
List of Grievances:
Sallie Mae has received billions in profits through excessive
federal subsidies, and lobbies against using those funds for student
grant aid.
Sallie Mae spent $3.48 million in federal lobbying in 2009, an
increase from $3.2 million in 2008.
Sallie Mae received federal bailout money to make high-cost, risky
private student loans to students. Private student loans are more
similar to credit cards, carrying variable interest rates up to 18% and
weighty penalty fees.
Sallie Mae fights against consumer protections for borrowers.
Private student loans are the only form of consumer debt that cannot be
discharge in bankruptcy, as a result of Sallie Mae advocacy. The
interest rate on a Sallie Mae private loan is at least 5% higher than
that of the federally subsidized student loan. The company is known for
refusing to re-negotiate the terms of its private loans when borrowers
encounter impassable financial obstacles.
Sallie Mae executives receive excessive compensation. Al Lord,
Sallie Mae’s CEO, recently built his own private 244-acre golf course
just outside of DC. He also attempted to buy the Washington Nationals
baseball team.
Add your name to List of Grievances by filling out the form
below.
