Archive for May 6, 2010

How Benevolent of You Sallie Mae

In this episode of why I went to law school we will discuss Sallie Mae’s new option. Congratulations you qualify for EXCESSIVE DEBT FORBEARANCE. There are several things wrong with this statement: 1) why does Sallie Mae make it sound like I will benefit for having excessive debt? 2) why is Sallie Mae trying to make a forbearance a good thing 3) when did this option become available, is it like a certain amount of interest accrues and I get “reward points” in the form of different ways to keep the borrower further in debt? 4) or is this one of those smoke and mirror programs that the federal government claims will benefit everyone like those home mortgage modifications which put many people in a worse financial position had they left their mortgage in its current form or just allowed the home to foreclose.

Sallie Mae isn’t doing anyone a favor, and let’s be honest it doesn’t intend to. Sallie Mae is probably a worse rip off than Fannie Mae, at least with the latter you have something tangible to show what you bought–the collateral. With student loans you just have broken promises, lost dreams, living paycheck to paycheck, a headache, anxiety attacks and probably at some point a nervous breakdown.

Congratulations: We at Sallie Mae will continue to capitalize more interest on your already unbearable student loan accounts with the further obligation that if someday you get that platinum level government job you may be able to pay us off before you die. In the meantime we’ll make it sound as if we’re doing you a favor, in the meantime the capitalized interest will go to further finance our student loan schemes for the fresh prey ready to be devoured by our all too willing loan officers.

So, since Sallie Mae acknowledges that I paid too much for a mediocre education as it deemed my student loans excessive debt, instead of forgiving a portion of the debt, they show their benevolence by compiling more interest to increase your overall debt amount  in this known collapsing economy.

Next level: ethereal, because you will die before you can get the Sallie Mae monkey off your back and before the federal government does anything to help you.