Anyone see this on 60 Minutes, it's caused an uproar at our school.
http://www.cbsnews.com/stories/2006...in1591583.shtml
http://www.cbsnews.com/stories/2006...in1591583.shtml
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Sallie Mae
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Triage said:
If this link doesn't work, then just do a search for Sallie Mae in the search box, and you should come across the article.
It's safe to say that I will never, ever go through Sallie Mae. Even if their bull**** ways never directly affect me, Sallie Mae is clearly run by unethical bast@rds. All I can say is Wow.
edit: Sorry, you beat me to it, Heech.
These few paragraphs stuck out at me b/c this coming year NYCOM is offering to be the lender for our Stafford loans 😱 And they included Sallie Mae applications within the financial aid packet. It all makes sense now...
"Asked if that's legal, Dannenberg said: "Yeah. It's done through a loophole called the school-as-lender program. But it's legal."
School-as-lender is a program Congress sanctioned that allows private lenders like Sallie Mae to pay universities money to help administer the Sallie Mae loans; in turn universities steer their students to Sallie Mae.
"Are you saying the colleges are fronting in a way, then, for the Sallie Mae types?" Stahl asks Dannenberg.
"A number of them are through the school-as-lender program. And they make a pretty penny on it," he says. "
"Asked if that's legal, Dannenberg said: "Yeah. It's done through a loophole called the school-as-lender program. But it's legal."
School-as-lender is a program Congress sanctioned that allows private lenders like Sallie Mae to pay universities money to help administer the Sallie Mae loans; in turn universities steer their students to Sallie Mae.
"Are you saying the colleges are fronting in a way, then, for the Sallie Mae types?" Stahl asks Dannenberg.
"A number of them are through the school-as-lender program. And they make a pretty penny on it," he says. "
I think education does serve a social good, so despite the label of "socialism" by someone in that article, I think it makes sense. Don't forget that the federal government also foots the bill (at least, a huge portion of it) for your eventual residency training, too.nvshelat said:
I think the real issue here is why Sallie Mae gets to play as both a public-affiliated lender *and* a private lender (when charging penalties). It's like allowing H&R Block to act as our tax auditer, and also allowing them to keep a percentage of penalties when they catch us lying on our 1040. We'd be audited every year.
But that's a whole different discussion. The bottom line for all medical students: treat your financial future seriously.
Be careful who you consolidate your loans with too. I consolidated my undergard loans, and then a few months later they sold my loan to Sallie Mae. I already knew that they were no-good from my undergrad financial aid officer, so I avoided getting loans from them. Then suddenly I get this letter from Sallie Mae stating they purchased my loan, and since the fine print on my original loan said this was allowed, I had to just deal with it. I'm hoping after med school, I can consolidate again, and be done with Sallie Mae. It really scares me to have a loan under them.
I just got off the phone with DoctorsDebt.com. And they had some good advice. First you need to spread your loans through different banks, ie. Unsubsidized through one and subsidized through another. This enables you to get out of the single lender law. Right now I want to do an in school consolidation but can't since all my loans are through Access. Just an FYI for you all, spread them around, the rates are the same anyway, and stay away from Sallie Mae.
