Student Loan Scams 1 – Sallie Mae, Part 4

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[Part 4] Sallie Mae is the largest student loan company. We look at a 60 Minutes report on Sallie Mae and how Sallie Mae, with the help of government, makes a lot of money off of student borrowers.

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    There Are 25 Responses So Far. »

    1. Comment by endofdecember on 25 December 2010:

      Seems like at this point I’m banking on the end of the world in 2012 to wipe out Sallie Mae… but I’m sure they’ll still try to get back the $72,000 I owe for a bogus Marketing degree somehow.

    2. Comment by Dragontrap on 25 December 2010:

      I even went so far as to call them inquiring about a Disability Discharge, and was informed my private loan did not allow for that. How is someone who is clearly having a lot of medical issues supposed to pay their stupid loans and fees when they can’t even cover the cost to barely survive?

    3. Comment by Dragontrap on 25 December 2010:

      Sadly I wish I had known about Sallie Mae before I ever took out a loan with them. I went to school under the Voc Rehab program through the VA (was 20% disabled at the time), and had to take out additional student loans to cover things the VA wouldn’t cover. Now I am sitting 2 1/2 years out of school, no job or income, no car, and I have developed a degenerative disc disease in my back that is keeping me from being able to find employment. My loans will be going into default as of January

    4. Comment by WonderWomanFan4life on 25 December 2010:

      a lady told me a couple weekends ago she is in debt to school for 30, 000 to be a Certified Nurses Asst. I was like you are lying right? she was like NO. she was serious.

    5. Comment by WonderWomanFan4life on 25 December 2010:

      yes and i went to some community colleges and I paid for it with my own money.. no bills there it was like 300 a semester. the most 500 back a while ago but I know those schools SUCK but at least i didnt have 300 grand.. i cant even PERCIEVE 300 thousand and when, where, who will hire her to make movies. Hell everyone is making movies now all you need is a decent camera, some lights, a decent story. that is the WAVE of our future. Look at YOUTUBE..

    6. Comment by WonderWomanFan4life on 25 December 2010:

      yeah thats true. yep YOU are fortunate to get an EDUCATION..hell i know people who NEVER went to college and EXACTLy.. what a dumb ass. I thought she was educated.

    7. Comment by WonderWomanFan4life on 25 December 2010:

      thank you for sharing this info

    8. Comment by RSSFeedify on 25 December 2010:

      She should have just went to film school. I think we all know none of these people are gonna pay these damn $200,000+ loans. No fucking sense. Sorry for cursing, but it’s angering.

    9. Comment by komjj14 on 25 December 2010:

      Perhaps 30 years ago having a college degree was a plus, but nowadays it really doesn’t matter. If I knew then what I know now, I would have skipped going to college and avoided the headaches and aggravation that I’m dealing with now thanks to SallieMae.

    10. Comment by anrosen on 25 December 2010:

      @DontGoToCollege

      Maybe you need a lesson in compound interest. While there are various types of compounding interest, the method most costly to a borrower involves continuous compounding.

      Using your scenario:

      1-year, $100 loan with simple compounding:
      $100 x (1+.08) = $108 (as you correctly state)

      1-year $100 loan with continuous compounding
      $100 x e^(.08 x 1) = $108.33

      “You are paying back more like $200. Thats what most people don’t understand.”

      Unfortunately you do not either.

    11. Comment by dvdcervantes on 25 December 2010:

      @Quiksilver209 Uhh…. Yeah they did. Remember high school when they tell you if you don’t go to college, your life is over? Or parents that push their kids into going to college?

    12. Comment by mrdog66 on 25 December 2010:

      OK while I agree with the idea that Sallie Mae is legal loan shark I think the blatant attack on peoples need for an education is misplaced. I notice he uses the word “socialist” which is a coed word for the right to attack any program that might be useful. He makes all these critical points without offering up any solutions.

    13. Comment by cramsa on 26 December 2010:

      I told one person this and they said “oh they can’t repo your mind” assuming a diploma mill is gona “increase your mental ability” with their every increasing JUNK MAJORS and more “requirments” to graduate. These criminals will turn you into a dept slave if given half a chance, a dept slave that has NOTHING to call their own because all they work for goes to these same criminals.

    14. Comment by blueswan1984 on 26 December 2010:

      @dvdcervantes Thanks at first I thought it might be worth it but as time went on I just don’t think it is. The classes went through very fast and I don’t had time to study or get tutor cuz I also work too and the debt is already too much to bare so I figure it’s best to pay it all and find another way and that’s what I did.

    15. Comment by dvdcervantes on 26 December 2010:

      @blueswan1984 That was a wise decision!!! Thank goodness you dropped out of that program/institute. The Media Arts and Animation degree from the Art Institute is NOTHING!! All it gets you is freelance jobs that don’t pay enough to even make a “dent” to your student loan debt. It’s not worth it. If I would’ve known more about the degree AND Sallie Mae, I would’ve dropped out too. Enjoy your debt free life buddy.

      P.S. Don’t go to the Art Institute unless mommy and daddy are paying for it. lol

    16. Comment by yoops on 26 December 2010:

      I really feel bad for the science graduates, you need to go to college for that.

    17. Comment by uncoverbrother on 26 December 2010:

      i think the moral of the story is to consider PUBLIC COLLEGES AND UNIVERSITIES! why pay goo-gabs more money for the same degree you can get by simply going public?!

    18. Comment by TheCashistrash on 26 December 2010:

      @DontGoToCollege Our country is sure Fuked up. A good education is not given much worth anymore. It is not about what you know. It is about who you know. Not much to do with people skills but I call it nepotism. Why you think we are in the financial mess we are now? we have complete morons running our country and not the best and brightest. This includes not only in politics but companies as well. People with PHD working in walmart when you have High school graduates managing them.

    19. Comment by ferrari4sale on 26 December 2010:

      @TheCashistrash I agree. If i started working straight out of HS i would be in much better shape. What a waste.

    20. Comment by atlasshrugged2u on 26 December 2010:

      Everywhere we turn this System is designed to keep us in debt, and that’s it!
      We are born, wer’e owned, we are mass producing robot slaves. We buy into the the “status” symbols of College, Marriage, Mortgages, Cars, etc…my advice?…Know that we are not alone (God) know who you are, do what makes you happy, don’t hurt anyone…Love yourself and each other

    21. Comment by AxiomaticObserver on 26 December 2010:

      I don’t understand. If you took out all those Student Loans why should you be allowed to get away scott-free when you realize you can’t pay them? Isn’t that a con? “Oh I’ll take out 50k in student debt then file for bankruptcy.” Wtf? Do they not know the Law of Nature?

    22. Comment by TheCashistrash on 26 December 2010:

      i keep telling people don’t go to the universities start working and educate yourself. IF you can live with your family and friends to save money. Save save save all the money you can from 18-30 years of age and then become your own boss. after you learn a trade such as construction, cooking, baking, installing electronics for people such as security systems whatever is better than working for someone else.

    23. Comment by TheCashistrash on 26 December 2010:

      man if i had known this i would have never gone to college and saved myself about 60K dollars in fees and lost wages for 5 years. Total opportunity cost of lost wages plus cost of fees is about 100K dollars. it was not worth it. I would have been about 100K dollars richer now. At least im out of debt, but i would be rich now if i had not gone to school.

    24. Comment by DontGoToCollege on 26 December 2010:

      @blueswan1984
      That’s great you got out before the debt got too bad.
      I wish I’d have done that.

    25. Comment by blueswan1984 on 26 December 2010:

      omg i wish i learn about this sooner, i once attended the art institute of portland in 2007 hoping to get an associate in media arts and animations and after the 1st semester i owed over $6,000 in loan that i had to pay back to sallie mae. after that i was thinking if i continue to go to this institute i will die sooner than i live so i instead drop-out, go back to my assembly job, live with my family, and is now able to get back my life, my friends, and my financials free from debt.

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