Forum Post: One demand For the students out there.

I have one simple demand. Im sure there are many people out there who would benefit from this.

Sallie Mae was a government chartered corporation. Its function is to provide student loans.

snippet taken from the SLM website

*Sallie Mae provides funding and servicing for student loans. Primarily a secondary market for student loans, Sallie Mae recently became a lender, originating student loans in its own name.

*Sallie Mae was originally created in 1972 as a government-sponsored entity (GSE). In 2004, the company terminated its GSE charter, ending its ties to the federal government.

From what ive seen there are many people holding these notes of debt. Which is not a problem. The issue arises that a good portion of the SLM debt has a reverse amortization schedule. In short even if the student makes all payments on time. The balance owed will still grow.

So the growth of these loans become a larger burden on the students than originally anticipated.

This is not the case for all SLM loans but, I know many people personally that are struggling with this note of debt.

Even though Sallie Mae is now a private company. I still think this abusive practice should be stopped. If they can not sort it out on their own accord. Then we must implement regulatory oversight to insure abusive practices in the arena of student loan financing are put to a end.