Wednesday, July 03, 2013

How Sallie Mae aids the Great Student Loan Ripoff

In simple language, Senator Elizabeth Warren explains how the rip-off works. Sallie Mae uses very inexpensive loans backed by you, the taxpayer, and uses them to subsidize student loans made by private banks at a much (MUCH) higher rate of interest.
“The new loans will make a profit of $184 billion over the next 10 years, and it turns out that even the so-called subsidized loans make a profit of about 14 cents on the dollar,” she said.
You really should watch this one.
I always refer to Student Finance England (a name used by the Student Loan Company) as "Bleed the Students".

Officially a government agency, they are nothing but a bunch of crooks, who use all sorts of means to encourage young people to get into debt in as big a way as possible.

The last two CEOs (Ralph Seymour-Jackson and Ed Lester) left office after scandals. Lester, who was caught fiddling his tax with ministerial approval, then got another lucrative government job running the Land Registry.

Thanks for this post. I will have an interesting time comparing the US scam with the UK one.
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