I'm hoping this thread will allow people to offer their opinions or solutions and share their own stories about their dealings with this company.
Have you ever noticed how Sallie Mae is usually the only lender being advertised exclusively at your school? It's because this private lender has a huge grip on the multi-billion dollar student loan industry that is protected by Uncle Sam to always make profits no matter what. It has a history of questionable practices, trying to get students to default in order to collect the bill from our government, which forces the taxpayers to to pay up for that student, while running a debt collection agency up with up to 20 percent in interest fees on the defaulted student.Even if you haven’t borrowed from Sallie Mae, chances are good you’ll be dealing with the company in the future: part of the loan giant’s business involves buying out loans from smaller companies.
It's not uncommon to hear about a student who borrowed $60,000 but ended up paying over $250,000 to Sallie Mae. How every month the student can only make the interest payment and not even be able to touch the actual total. Who doesn't find that perverse?
The simple solution would be to get rid of the middle man and have the government loan out the money directly to the students.
For myself, I stopped going to my school because of the fact that I was borrowing from Sallie Mae, and if I did borrow from another lender that still didn't guarantee me from avoiding Sallie Mae altogether. I know that I can't afford to pay for my school without having to borrow so I'm torn on this...