Sallie Mae sends its people to Hawaii as people drown in debt... (1 Viewer)

[saintmdterps]

Blame the educational institutions that charge an arm and a leg to attend college, therefore students have to take out loans to pay for it.

Yup. We give an open checkbook to 18 year-old kids in college so they can run up 150+K in student loans, but let those same 18 year-olds apply for a mortgage for 150K and see how that works out.

 

[Dago]

Yup. We give an open checkbook to 18 year-old kids in college so they can run up 150+K in student loans, but let those same 18 year-olds apply for a mortgage for that 150K and see how that works out.

both the ACA and financial aid have turned into situations where the government either allows or forces people to provide near unlimited wealth to two major industries (post secondary education and the medical industrial complex). While I am usually in favor of minimal government regulation, only regulating the supply of money without any regulation on the cost of services has turned into a disaster for the people of this country

 

[Dago]

Having never worked in finance a day in my life I know Sallie Mae does student loans!

Having never worked in finance I also know the cost of education has skyrocketed since it went public 1997 opposed to when it was a government agency.

So let's talk about Sallie Mae?

not sure if you are being facetious? if so I apologize for missing it

Sallie Mae has nothing to do with creating or originating the student loans we are referring to. All Stafford loans are originated with and disbursed by the US Government. Sallie Mae is what is referred to as a 'loan servicer'.....a collection agency

Sallie Mae does provide some private student loans, but there are criteria for schools to be able to be on that list and applicants must pass credit checks

 

[The Moose]

not sure if you are being facetious? if so I apologize for missing it

Sallie Mae has nothing to do with creating or originating the student loans we are referring to. All Stafford loans are originated with and disbursed by the US Government. Sallie Mae is what is referred to as a 'loan servicer'.....a collection agency

Sallie Mae does provide some private student loans, but there are criteria for schools to be able to be on that list and applicants must pass credit checks

Maybe I am wrong I always thought they started in the 70s as Student loan marketing association. A government agency. Then in the late 90s became a private company that we know today as Sallie Mae and got to collect all the money from when it was a govt agency.

I don't think I am wrong? Am I.

So yes when the explosion of students in the 90s happened they were private and all loans written were govt backed since like 97 or so. Oh and yes they are in charge of collection of student loans.

The absolutely stupid thing in all this is we have almost five times the students getting a higher education as the 80s yet cost has jumped up astronomical amounts. Any other biz in the world price per anything goes down with greater demand for product. When it jumps to 5 times the amount you should see a real drop yet the cost of higher education has gone up about 400 percent in that time.

So yes I think how you can see I want to talk about the whole thing. Yes I would like to talk about how a government agency became public cuz I don't know how that went down. Who was behind it all.

I would like to talk about how higher education works like no other biz in the world. How when demand is thru the roof and cost per student goes up crazy amounts.

 

[Dago]

Maybe I am wrong I always thought they started in the 70s as Student loan marketing association. A government agency. Then in the late 90s became a private company that we know today as Sallie Mae and got to collect all the money from when it was a govt agency.

I don't think I am wrong? Am I.

So yes when the explosion of students in the 90s happened they were private and all loans written were govt backed since like 97 or so. Oh and yes they are in charge of collection of student loans.

The absolutely stupid thing in all this is we have almost five times the students getting a higher education as the 80s yet cost has jumped up astronomical amounts. Any other biz in the world price per anything goes down with greater demand for product. When it jumps to 5 times the amount you should see a real drop yet the cost of higher education has gone up about 400 percent in that time.

So yes I think how you can see I want to talk about the whole thing. Yes I would like to talk about how a government agency became public cuz I don't know how that went down. Who was behind it all.

I would like to talk about how higher education works like no other biz in the world. How when demand is thru the roof and cost per student goes up crazy amounts.

I wasn't involved in administering Title IV back in the 90s.....been doing it since 2001. What I do know is that since the ACA, Sallie Mae does not lend student loans in any government related capacity. All student loans they originate themselves are private loans that have nothing to do with the FAFSA (Free Application for Federal Student Aid) and are credit dependent.

Every government backed student loan since Obamacare was instituted is originated and lent directly from the United States Department of Education. Sallie Mae's only involvement in Title IV loans is as a collection agent.

As a matter of fact, when somebody defaults on a student loan, the servicer (Sallie Mae, Nelnet, MOHELA, Navient, Fed Loan Servicing) sends the account BACK to the guarantor which is the US Government and the US Government handles the collection of defaulted accounts

 

[The Moose]

I wasn't involved in administering Title IV back in the 90s.....been doing it since 2001. What I do know is that since the ACA, Sallie Mae does not lend student loans in any government related capacity. All student loans they originate themselves are private loans that have nothing to do with the FAFSA (Free Application for Federal Student Aid) and are credit dependent.

Every government backed student loan since Obamacare was instituted is originated and lent directly from the United States Department of Education. Sallie Mae's only involvement in Title IV loans is as a collection agent.

As a matter of fact, when somebody defaults on a student loan, the servicer (Sallie Mae, Nelnet, MOHELA, Navient, Fed Loan Servicing) sends the account BACK to the guarantor which is the US Government and the US Government handles the collection of defaulted accounts

So the ACA passed somewhere around 2012 I guess. So everyone prior was getting govt backed student loans thru a private company Sallie Mae? That use to be a govt agency that went public in the 90s?

So Sallie Mae has been a lender for over 30 years and collection agent for only a few years along with that other collection agent that is under them I think it is Navient the nation's largest servicer of federal student loans I read somewhere.

Ok I guess I understand this web of nonsense as much as I am gonna today.

I hope they at least hire collection agents from the us of a and not outsource to India.

I am sure we don't want to get into how higher education has skyrocketed in both demand and price. Cuz that it a hard one to figure out without blaming the free flow of student loans of the 90s onward.

 

[Dago]

So the ACA passed somewhere around 2012 I guess. So everyone prior was getting govt backed student loans thru a private company Sallie Mae? That use to be a govt agency that went public in the 90s?

So Sallie Mae has been a lender for over 30 years and collection agent for only a few years along with that other collection agent that is under them I think it is Navient the nation's largest servicer of federal student loans I read somewhere.

Ok I guess I understand this web of nonsense as much as I am gonna today.

I hope they at least hire collection agents from the us of a and not outsource to India.

I am sure we don't want to get into how higher education has skyrocketed in both demand and price. Cuz that it a hard one to figure out without blaming the free flow of student loans of the 90s onward.

as I understand it, Navient is not under Sallie Mae. Basically, Sallie Mae was split up into 2 seperate entities....Sallie Mae and Navient although I could be wrong about that one

 

[saintmdterps]

both the ACA and financial aid have turned into situations where the government either allows or forces people to provide near unlimited wealth to two major industries (post secondary education and the medical industrial complex). While I am usually in favor of minimal government regulation, only regulating the supply of money without any regulation on the cost of services has turned into a disaster for the people of this country

Well said. I can tell you after 15 years in health care, it is a complete and unmitigated disaster for the exact reason you state. There is no emphasis at all on functional outcomes, only on the bottom line.

 

[Det. Brees]

Blame the educational institutions that charge an arm and a leg to attend college, therefore students have to take out loans to pay for it.

Yes! My problem is with the Universities and the Colleges for charging such high prices for an education.

 

[jboss]

This is the kind of government you get when you vote democrat.

Every single bad policy is Democrat and the good ones are all Republican. This is how politics works, to me. My brain is normal and not smooth at all.

 

[jboss]

both the ACA and financial aid have turned into situations where the government either allows or forces people to provide near unlimited wealth to two major industries (post secondary education and the medical industrial complex). While I am usually in favor of minimal government regulation, only regulating the supply of money without any regulation on the cost of services has turned into a disaster for the people of this country

A lot of anti-big gov political rhetoric focuses almost solely on regulation and not how much public money goes to private industry. Literally billions of which end up being profit. And that's just the money that goes directly to them.

 

[The Moose]

as I understand it, Navient is not under Sallie Mae. Basically, Sallie Mae was split up into 2 seperate entities....Sallie Mae and Navient although I could be wrong about that one

Oh I get it now they went public with another collection firm that only does student debt so it does not look like Sallie Mae gets ALL the work and get another huge selling of stock to raise more capital.

I guess I get it to some extent.

I have never been a fan of the people that accually push paper and talk for a living in general. They tend to be kinda sneaky and talk real quick to get stuff past ya.

Now I am not saying all of them just some.

 

[49erKiller]

Dago, thank you for providing some clarification on this subject. Hitting like isn't enough sometimes. Very informative. Props!

 

[zeetes]

to the people defending sallie mae, nelnet, or whatever.

my wife had around 14k in student loan debt through sallie mae, after we paid down the rest of her loans. sounds ok for a master's degree, not bad, right?

she graduated with a master's of accounting.

i, not unfortunately (i would have taken out a billion dollar loan for her to graduate), after scholarship and grants, she had everything paid for. because of thid

 

[purvis_guy]

Every single bad policy is Democrat and the good ones are all Republican. This is how politics works, to me. My brain is normal and not smooth at all.

I'm glad you finally caught on.?