Second Sunday Blog
Ok, some colleges are glorified high schools. And some Aren't. Regardless of this fact, shouldn't those students who have successfully graduated be given a Chance to repay their Student Loans?
Congress Failed to get enough votes to pass an act which would have held student loan interest rates at their present levels. This means interest rates on student loans could Double in July of this year!
That is Why the info. Below is important. I know one student making straight A's who wants to go into a scientific specialty. I know another student who, against great odds, (she made eight thousand dollars last year at her Job, is going into the arts in an area also requiring specific skills. For both of these people, a doubled student loan interest rate would be Disastrous.
I also know some part-time college instructors whose jobs may be lost if those who become students are the small minority who Don't Need Loans.
We mouth off all of the time, or politicians and media people do, about how the children are our future. But even Closer to your future well-being and mine are those Now in college.
So please check this out.
Rebuild the Dream
Have you ever heard of Sallie Mae? They're the nation's largest student lender --
and they aren't as sweet and innocent as their name suggests. In fact, they're downright
exploitative.
Case in point: when we asked the Rebuild the Dream community to share stories about
their student loan debt, Barbara H. from Tennessee
"He's not been able to find a decent job, is barely making ends meet, so has not
been able to start paying his loans. He's talked to Sallie Mae regarding this, but
they continue to call him daily, including Saturday and Sunday. Then they started
calling me daily, since I was listed as a secondary contact.
When I complained to their representative that this was harassment, I was informed
that they can call each contact number up to eight times per day.
"
And Rose (not her real name) shared this:
"I encouraged my grandson to pursue a college degree, because I thought as a Black
male, his chances of landing a decent paying job would be much improved. Because
I co-signed, I now use a great portion of my Social Security check to pay the loans.
When I called Sallie Mae to work out a payment plan, the representative told me to
tell my grandson to sell his plasma to pay the loan.
"
That's right -- Sallie Mae told Rose that her grandson should
sell his blood
to keep up with his loan payments. Sallie Mae doesn't offer alternative payment plans
for students. As it turns out, this is just the way they do business.
[1]
Click here to tell Sallie Mae CEO Albert Lord: Shame on you! Stop exploiting student loan borrowers, and instead offer new repayment plans.
Next week Sallie Mae is having their annual shareholder meeting in Delaware
we will personally deliver this petition to CEO Albert Lord.
Right now, Sallie Mae gives students who are struggling with payments very few options,
none of them good: defer their payments (and accrue interest), default on their loans
(and wreck their credit), or put loans in forbearance (and pay huge fees and interest
costs). College graduates are facing the worst job market in generations -- punishing
them for a bad economy and soaring tuition isn't good business.
What would good repayment options look like? Sallie Mae should modify loans to lower
interest rates, provide income-based repayment plans, and stop charging forbearance
fees and interest for those who need time to find jobs.
Apparently, Sallie Mae doesn't understand good customer service.
Let's gather thousands of signatures to tell Sallie Mae CEO Albert Lord: We won't sell our blood to pay our loans. Work with student loan borrowers to come up with new repayment plans.
Next week at Sallie Mae's shareholder meeting, we're going to call out Sallie Mae's
predatory practices and take a stand for student loan borrowers, with allies like
the Student Labor Action Project.
Many people think of Sallie Mae as the old, trustworthy, government-sponsored lender.
But in fact, CEO Albert Lord led the charge in 1997 to privatize the company, which
then purchased the name "Sallie Mae" for $5 million to give the impression that it
was an agent of the government. Sallie Mae has spent millions every year lobbying
against
students, just so they can make fatter profits
[2][3]
. It's time to put a stop to Sallie Mae's exploitative and abusive practices.
Thanks, and be well,
Molly and the Rebuild the Dream team
p.s. The New York Times
is doing a big series on student debt called "Degrees of Debt," starting with
this piece from Sunday's front page
. It's a must read.
Sources:
[1]
Forbearance: How Sallie Mae Makes Money By Jacking Up Fees And Billing Taxpayers
[2]
Center for Responsive Politics: Sallie Mae Annual Lobbying, 2011
[3]
NY Times: Lobbying Imperils Overhaul of Student Loans (Feb 2010)
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fix the U.S.
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