The Answer To Everything Is "The Government"

I was completely with this person until they insisted "the government should fix this," at which point I no longer felt bad for the poor bastard.

Your Emails: Sallie Mae Servicing - Loanshark/Beyond Predatory Lender

My loans are consolidated with Sallie Mae. Sallie Mae has added per a recent conversation with one of their customer service reps $15,000 in interest to my student loans in approximately in a 7 year period. I recently started paying on my loans on Sallie Mae's graduated plan. I have a due date for the 28th of the month, but because I pay Sallie Mae earlier than that date I am told I am being charged additional interest on my account. Further, Sallie Mae are showing my loans in my credit file as if I owe two loans instead of one. They are not showing all the original lenders as paid in full even though Sallie Mae was suppose to pay off those original lenders they have listed them as if the information on those lenders are not available and they don't know their phone numbers or the balances, which is impossible since Sallie Mae is the one that paid all those initial lenders off in full. In one of my credit files Sallie Mae is listed on all my loans and have taken the original lender off. In another credit file Sallie Mae show me owing them $58,000 and $66,000 when I have only one consolidated loan with Sallie Mae. Students need to get together and protest and March until our government stop this insane abuse of student loan practices by lenders.

Sallie Mae has not reported my monthly payments to the credit agencies. I have not as of today received a requested written statement from Sallie Mae of my account. Sallie' Mae's customer service told me I had to have either a coupon book or a statement, but I could not have both. While I am paying Sallie Mae the agreed on payments on my loan and before my due date. Sallie Mae tells me the interest on my loans a increasing because I pay earlier than the due date via mail.

The interest on these loans are more than the entire initial loan and near impossible to pay because of the huge amount of interest, which Sallie Mae says accrues daily

The consequences of these loans were never explained properly when taken out. Lenders like Sallie Mae are taking advantage of t he poor, the uninformed, and those simply wanting to better themselves by pushing these bloodsucking loans on to unsuspecting students when the bulk of these students will end up with nothing but degrees in fields where there are no jobs to be had and a loan it will take them the rest of their life to payoff working in jobs slightly paying more than minimum wage.

The interest on all student loans should be frozen for at least 5 years to give students an opportunity to bring down the principle on these loans. The Government should allow students to discharge the interest on these student loans in bankruptcy since the lenders are collecting more than their fair share of interest. The Government should allow lenders to charge only a flat rate of interest on student loans and not compound the interest daily. .

What else should the Government (capital G) do? Pay those loans off? Give you a house when you graduate as a present? Buy you a car? Feed you?

How about the person signing up for the loan should understand the terms and not take a loan if they don't understand what they are getting themselves into? Why is this Government (capital G)'s job?

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


Alain Saffel said...

And what's wrong with consumer protection legislation exactly? Not everyone has the resources to decipher every agreement presented.

Consumers shouldn't have to go to court for every damn problem they gave. Simple, clear legislation levels the playing field for businesses and consumers. Works well in other countries, why not in the US?

Government should be intervening when it's obvious business is operating in an unscrupulous manner.

How about product safety? Should we shop with a mobile lab to test every product we'd like to buy? And who pays for potentially destructive testing?

It is just easier to have fair legislation so we don't clog up the courts with bullshit lawsuits.

W.C. Varones said...

Hate to break this to you, Alain, but Sallie Mae is the Government!

Government should intervene to stop the Government's unfairness and incompetence?

I can't wait until these Government geniuses are running the health care system. "What do you mean you weren't here for an amputation? Now would you like to pay for that on the 10-year plan?"

W.C. Varones said...

To be precise, Sallie Mae was created by the Government and sold to ex-Goldmanite JC Flowers, who is a buddy of Jon Corzine and makes huge political donations to both parties.

The Government guarantees all the debt while Mr. Flowers collects all the profits. The Government also enslaves debtors for life to Mr. Flowers by making student debt immune to bankruptcy.

Lovely crony capitalism!

Fortunately for future borrowers, Barack Obama nationalized the student lending industry so all future borrowers will deal directly with the Government rather than with Government-backed TBTF banks or Government fronts like Sallie Mae.

I am sure being a debt slave to the government will be waaaay more fun than being one to a crony capitalist.

Alain, there's nothing wrong with consumer protection. But why should the Government "protect" the consumer from the Government, as WC Varones pointed out?

If just 25% more students actually knew what they were getting into with these loans and chose NOT to commit themselves to a lifetime of debt, the debt machine would cripple (the parasite needs new hosts to survive).

Where's the responsibility lie?

W.C. Varones said...

Here's what the Consumer Protection Bureau should stamp on every loan application.

1. DO NOT take on five or six figures of debt unless you are getting a degree in a field with very high salaries and very high placement rates.

2. DO NOT ever sign up for debt that can't be discharged in bankruptcy.

Problem solved.

Of course, that would end the higher education bubble and its contribution to the Great American Ponzi scheme, which is exactly what the government doesn't want and why there will never be truth in student lending.

Alain Saffel said...

I'll be the first to admit I'm no expert on the American political system. Problems are never that simple there, that's for sure.

So Sallie Mae isn't actually part of the government anymore, if I understand correctly?

Is student loan debt now being carved up and sold off to unsuspecting countries? ;)

My point still stands about consumer protection legislation. Yes, consumers should not take on debt they have no ability to repay, but that does not absolve companies or organizations operating in an unscrupulous manner. In this case it seemed as if the student felt they'd be able to repay and, in fact, they are repaying it.

Both parties bear responsibility for the problem, but if Sallie Mae is not retiring the debt in a normal fashion, this is where the problem started, is it not? (Forgive my ignorance if loans in the US do not operate in a substantially similar fashion to the rest of the world.)

Having dealt with a couple American finance companies here in Canada, I'm aware of how they try to push the limits with bullshit fees. God help us if our government eliminates consumer protection. We'll be at the whim of greedy corporations looking to nail us at every turn.

Unfortunately it seems as if lenders these days operate more like loan sharks and pay day loan places. They try to hook borrowers, pile on bullshit fees and charges, and eventually make the loan so large and unreasonable that the borrower will never be able to repay.

But consumer protection legislation is probably considered socialist, so most Americans have a knee-jerk reaction to that, so they don't want it. Or if they do get it, it looks okay on the surface, but there's a always a catch.

What I have the most difficulty understanding is why American voters buy into the illusion that the Democrats and Republicans are different. There don't seem to be many who realize that they're getting screwed by both sides and voting is virtually irrelevant there now.

When the shooting starts, I'm sure we'll see many Americans coming across the border. Bring your toques and mittens. You'll need them. :)

W.C. Varones said...

Thanks, Alain.

Canada is indeed on my SHTF plan. You guys are a right-wing Tea Partier's wet dream.

I'll bring the mittens, but I don't toque anymore.