Forum Post: Occupy Sallie Mae and Student Loan Providers!
Posted 12 years ago on Nov. 19, 2011, 11:18 a.m. EST by WereNotGonnaTakeIt
(1)
This content is user submitted and not an official statement
You guys are missing the bigger picture. Government can regulate the lenders when the loans are government backed, but Wall Street could give two sh!ts about you. Student debt at 1 TRILLION dollars and cannot be discharged in bankruptcy. Rates and fees as high as credit cards. Average person has more student debt than credit card debt. You thought the housing market collapse was huge. Hear the train coming?
I've heard horror stories about Sallie Mae and their ruthless means of debt collection. I graduated a couple months ago with a MA and the bills are going to start arriving soon. Working for $12.75 an hour in a warehouse beside many other college-educated, debt-ridden young adults. I clear $400 a week after taxes and it is going to be painful to part with even 10% of my monthly pay. I am making just enough to afford decent housing, food, and other necessities. If nothing changes soon in the U.S., expatriation is the most attractive option.
Yes, student loans should absolutely be made as affordable as possible. But students please take some responsibility and think before you sign. Will you be able to repay these in as reasonable amount of time? Is your degree marketable and what is the job outlook? Before even deciding upon a major, please do the research and make sure there are jobs as well as jobs that pay a decent salary. I can't tell you how many students I know who have and are majoring in fields that have little promise and low pay. Hell, I was just at Target and heard a the checkout guy tell the customer that he has no idea what he's going to do with his History degree. Please, please, please, do the research ahead of time. Also, don't take out more loans than needed. You don't NEED to go to a private school, and you don't NEED to go to to an out of state school that cost 2-3 times.
Can we occupy a local starbucks who decided that they didn't want to supply their PAYING customers with rice milk anymore. They think we are savages and we are going to drink soy milk?!!
Agreed! Student loans should all have a low interest rate.
Sallie Mae has given loans at 12% in the past several years. Interest is compounded. They also charge incredible fees. These high interest loans have now ballooned.
It should be criminal for Sallie Mae to do what it has done to so many of America's students. Also, they function as both lender and collector, because Al Lord (CEO) decided to purchase the largest collection company in the NATION.
FYI,
Student loan rates avg 3.4% and are as low as 2.94% APR
Credit card rates 17% and are as high as 29.9%
Federal student loans,Yes, Private student loans No.
Sallie May loans rates are from LIBOR + 2.00% (2.25% APR) to LIBOR + 9.88% (9.37% APR) with an average rate of 3.4%
The rate depends on how much you borrow and for how long. You don't accumulate any interest while you are in school. The rules are actually pretty generous compared to a credit card, auto, or home loan.
Why should the banks providing student loans get a pass when it comes to student loan defaults. Bankruptcy is not always the answer but it is there to help protect and to give a second chance. Google who has had to file and you'd be surprised that it's not just for the lazy, uneducated and unemployed. Tragic things can happen to anyone. All I'm saying is that if you can discharge EVERYTHING but student loans that is nothing other than blatant unscrupulous lobbyists and political knuckleheads in bed together. Could you imagine if the credit card companies had that power? There needs to be regulation when there are so many are struggling and might need a fresh start. Many do have the intent to pay back the loans, as we do, but when my wife's student loan has nearly 40% additional fees and interest tacked on the principle, it's a little much. NO we are not in default as we have not even started repayment, she is just now finishing up her school. Trade schools and colleges have aligned their cost of tuition with the loan disbursements and this is causing even more of a problem. Look at the increase in tuition against other economic indexes in regard to percent of increase...It's crazy. Say what you will but..don't be naive. I think all agreements, for the most part, are entered in to with good intent. Things happen, things change. Hell, that great job you thought might have with your brand new shiny degree may have just evaporated with the economic downturn. As for the "You signed on the dotted line".....YEP, and also have been divorced, good thing the government didn't force me to stay married and not permit the legal proceedings called a DIVORCE. Same deal. My intent was good when I signed on the "dotted" line but things change. Lose the blinders..
A person has to anticipate the WHAT IFS before they sign on the dotted line. Stop..think...plan...act. My daughter was taught that in grade school. I have found it invaluable. Take out a student loan. Think about it first. WHAT IF you get sick. Who takes care of the loan? For how long? Can you repay that person on top of the loan? etc etc etc. Maybe try to get a scholarship? Perhaps a grant? There's tons of money for grants out there especially in NYS. Just ask any fire department. They get them all the time.
Here's an example what happened to me. My then husband and I had credit card debt. (had to keep up with the Joneses you know). We get divorced. I paid my half he was paying his. Lo and behold he DIED one year left on paying his share. Who got stuck with it? ME. Why? Because WE had the credit cards together so my name was on the dotted line. Obviously we never stopped to think about the what ifs. What did the CC say? Oh well....too bad......you owe it. They were right. I had my own CC that I was paying on and now these other ones. I wanted to run and hide but knew better. This was MY problem and I am going to fix it(typical baby boomer that I am). I worked my butt off....made sacrafices....took on extra work. Last year it got paid off.
No blinders here.......I faced my problem because I OWNED it. Not the bank. Their fees are high because of many who ignore and run from paying what they owe. We all suffer because of them.......And guess what.....those are the 99% who cause these messes.
Sorry that happened to you. What a great attitude you had about repaying your debt, taking responsibility for your decisions, etc and what an excellent example you are!!!!!
Thank you, pk7. I am one of the lucky old baby boomers who had parents who lived through the Depression. They shared what it was like and taught all of us what they learned about being responsible.
Well sounds like your parents did a great job, and I think we're all happier as adults when we learn how to work hard and take responsibility, which is what I'm trying to teach my teens now.
Good for you! Glad to hear you are taking parenting seriously. It's very hard work and if done right there can be tons of satisfaction in the end.
[Removed]
[Removed]
Strangle Sally and Fuck Mae in the ass!!!!
[Removed]
[Removed]
That's what I have been suggesting all along. How is Wall Street and irritating the 99% as they try to get to their jobs going to make changes? It will only make the 99% angry. Many work on Wall Street as mail clerks, secretaries, file clerks, etc. WASHINGTON sets the tone for what goes on on Wall Street.
Protesting the Fannies, Freddies, Sallies, Eeenie, Meenie, Minni, Moes makes better sense.
I do have to say that if you have a student loan you are the one that signed on the dotted line. That's your fault if you got stuck with that loan. Changing the fees/rates, etc is what needs to be done. Don't expect anyone to forgive loans that you signed up for.
Why is there credit card default, refinancing, and forgiveness- but nobody will help me consolidate or manage my private loans- which, arguably I was coerced into signing at age 17, 18, 19? Id like to pay them back- but being massively under employed in my field, barely making it, how am I to succeed if I was set up to fail? Why was it legal for me to be set up to fail? I "signed the dotted line" so I'm screwed? What about the thousands of other people in my same position?
NO ONE can make you do anything, supergirl. NO ONE has that power over you. You could have said NO. Their job is to sell you something. It's your fault if you buy into it. Basically it's a hard lesson to learn when it comes to credit. You have to do the best you can to get rid of the debts. I've been there myself a few times over my long years. Ignoring them won't make them go away either. Try to pay $10 more than minimum every month. It will go down fast. If you pay minimum that debt is with you for 20 years. If you pay nothing then you get added fees and will never catch up. Take the bull by the horn, accept responsibility and don't blame others for something you got yourself into.
NO ONE set you up to fail. You did that all by yourself. They won't let you consolidate because you aren't being responsible. The others in your position either are paying, or worked with the creditor to make x-amount of payments til it's paid off (most are really good about that), or they are running and thinking they can hide from what they owe.
Go to a credit counselor that is run by your city. Don't go to one you find in the phonebook. My ex and I did that once. My goodness they ripped us off big time!
Good luck!
I have no credit card debt whatsoever- my only debt is student loans. none of them are eligible for consolidation since they are private- they never have been- even though through school I have made responsible payments. I owe $700 a month in student loans, and after taxes bring home $1600 a month. I'm talking about student loans- not credit.
Sorry about that.Thought you mean CC as well. Wow you are taking home more than me! I'd call them up to see if they can lower the interest or whatever until it becomes manageable for you. Make some extra cash somewhere. Clean houses if you must. That's really good money. You will get through it somehow. Write down what you spend every day. If it's buying lunch or dinner or fancy coffee, etc.......give them up. You would be amazed how much you save. You will be so proud of yourself when you make your final payment. You'll be able to be guilt-free and know you did it the RIGHT way. That's the best feeling in the world :)