Sallie Mae sends 100 employees to Hawaii on the backs of student loans

[dawp]

Give it a break!! This is the internet!
oh...I see - -- as in Gotcha! You posted a double negative.....cry moar.

I just found it humorous to see you railing against student loans and using poor grammar.

and I would like to see the higher education system in this country overhauled, why should anyone have to mortgage their future just to earn a degree?

 

[pcgeek11]

I would also say IMO she has should not be running for President as a Democrat! Never did like her and it has nothing to do with her being a female! I think she is in this solely for her own benefit and not to represent her base!

Sallie Mae is running for President?

 

[dawp]

Sallie Mae is running for President?

and as a DEMOCRAT to boot.

 

[JEDIYoda]

I just found it humorous to see you railing against student loans and using poor grammar.

and I would like to see the higher education system in this country overhauled, why should anyone have to mortgage their future just to earn a degree?

They shouldn`t !1 Yes, it should be overhauled!!

 

[pcgeek11]

What happened to the post I quoted above?

Forum is being weird again or someone moved it.

Or the poster realized it was in the wrong thread, removed it and said so.
admin allisolm

 

[JEDIYoda]

can not wait for this bubble to burst. I'm sure we'll bail out these sorts of companies nonetheless. The amount of money being made off student loans is sickening.

Sallie Mae execs tan at Maui retreat while student debt crisis tops $1.6 trillion

As borrowers struggle to keep up with their payments, Sallie Mae flew more than 100 employees on its sales team to Hawaii to celebrate $5 billion in sales.

www.nbcnews.com

If you want to make an issue out of this have at it!
On the face of things they are a business who is rewarding some employee for doing their jobs!!
As agregious as this could bre made out to be, it is hardly a blockbus5ter article concerning student loans!
It is more about - VACATION - REWARD FOR WORKING HARD A JOB WELL DONE!!

 

[TheVrolok]

So you're saying that kids whose parents are broke shouldn't be allowed to go to college unless they can get a scholarship or a rich relative to cosign for them?
Or are you saying that kids whose parents are broke should have to take on such huge amounts of debt that they have to struggle to pay it off even if they are successful?
And yaknow because nothing says capitalism like a state-owned lender with collection rights that supersede bankruptcy protections.

Absolutely this. I'll add those of us who planned on graduate school from the start were put even further behind the ball. Going through this broken system twice? Ridiculous.

 

[WelshBloke]

I agree, i worked my way through college and the University.

What's the average cost for a year of college in the US? (Tuition, rent, food, etc)
What's a reasonable amount that a student can earn in a year whilst still studying full time?

 

[Fanatical Meat]

Student loan debt should be made dischargeable again.

Few years ago I wouldn’t have said no
But now I understand how it works and the loans are far above prime. I agree, would likely slow cost increases too if schools and banks knew they could be out money

 

[s0me0nesmind1]

I just found it humorous to see you railing against student loans and using poor grammar.

and I would like to see the higher education system in this country overhauled, why should anyone have to mortgage their future just to earn a degree?

The answer is very friggen simple. Stop. Giving. Loans. To. Morons.

There is a finite number of seats at colleges - each and every year majority of major colleges fill all the seats and they deny plenty.

Therefore, supply is limited - demand is ARTIFICIALLY HIGH because people are able to get a loan regardless of their background, regardless of their assets, and regardless of how stupid their major is. Stop doing that - and the demand plummets. Prices will naturally fall.

 

[s0me0nesmind1]

So you're saying that kids whose parents are broke shouldn't be allowed to go to college unless they can get a scholarship or a rich relative to cosign for them?
Or are you saying that kids whose parents are broke should have to take on such huge amounts of debt that they have to struggle to pay it off even if they are successful?
And yaknow because nothing says capitalism like a state-owned lender with collection rights that supersede bankruptcy protections.

That is not at all what I'm saying in the slightest.

Like... seriously...... Nothing to even reply to here because I honestly hope you meant to quote someone else.

 

[dank69]

Why does that make someone a second class citizen?

Because poor people would not have access to the same education opportunities as rich people?

 

[Stopsignhank]

This is the specifics on the person in the article.

Paige McDaniel, 39, took out a federal Sallie Mae student loan to pay for her undergraduate degree 20 years ago. Six years later, before the Sallie Mae split with Navient, she took out a private loan with the company to pay for her grad school.

I thought they were the same kind of loans,” McDaniel, of the Denver suburb Elizabeth, said. A mother of two, she borrowed $120,000 for her tuition at Lakeland College for a master's in business administration, to help with the cost of living as she worked through school.
The agreement, which included a warning to read it before signing, said the interest rate was variable, but she says she doesn't remember being told the rate was much higher on the private loan.
After graduation, Sallie Mae expected McDaniel to pay “well over $1,500 a month,” she said.
“When I told them that, you know, I couldn't afford that, could we make some payment arrangements, they essentially said, 'So sorry, we'll put a lien on your house and garnish your wages if you don't make those payments,'” McDaniel said.

Now, McDaniel owes $304,000, even though she declared bankruptcy to protect her house after being unable to make her payments. She’s hired an attorney to sue Navient, arguing that bankruptcy should have cleared her debt because it was a private loan.
“There’s no way anybody can ever dig themselves out from underneath that,” McDaniel said. "They just don't see that there are families on the other side of this. It's not just my generation cause I have the loans, it affects my children. How am I going to send them to college?"

So she borrows $120K, did not read the terms of the papers she signed, balked at the payments, declared bankruptcy to not pay the loans. Sounds like it is her fault for not using her MBA to understand financing.

 

[imported_tajmahal]

Yeah, you worked your way through college back when tuition cost a month's wages at minimum wage. Good for you!

Meanwhile, those universities with their 'useless degrees' are in fact charging market price for those degrees. The real problem is that market price has become too close to all your future earnings.

Why in the world would a University be charging "market prices"?

 

[imported_tajmahal]

What's the average cost for a year of college in the US? (Tuition, rent, food, etc)
What's a reasonable amount that a student can earn in a year whilst still studying full time?

It depends entirely on what school you attend, where and how you live and how and what you eat. If you attend a Ferrari school, live in Bel Air and eat in a 4 star restaurant every day it gets kinda expensive.

 

[Meghan54]

Why in the world would a University be charging "market prices"?

Why wouldn't they be?

 

[imported_tajmahal]

Why wouldn't they be?

Because it's not their mission statement?

 

[WelshBloke]

It depends entirely on what school you attend, where and how you live and how and what you eat. If you attend a Ferrari school, live in Bel Air and eat in a 4 star restaurant every day it gets kinda expensive.

I was curious for some figures really as I'm not living in the US.

Do you think that, in general, it's much more expensive for students now and that saying "well in my day..." is pretty irrelevant?

 

[imported_tajmahal]

I was curious for some figures really as I'm not living in the US.

Do you think that, in general, it's much more expensive for students now and that saying "well in my day..." is pretty irrelevant?

In some ways yes. My first apartment was $125 a month, but it was shared with 5 other people, 2 dogs and it was a rat hole. No cell phones in the day, so one house phone we all chipped in on. No pay TV, only the 6 stations you got with an antenna. So prices are higher, but living frugally back then was not substantially different than living frugally now. My parents had it worse and my share cropping grandparents had it much worse. You live to your means and you do without at times.

 

[TheVrolok]

I was curious for some figures really as I'm not living in the US.

Do you think that, in general, it's much more expensive for students now and that saying "well in my day..." is pretty irrelevant?

Objectively, yeah, flat out - it's dramatically more expensive now.

That said, I do agree with taj to a point in that it seems, generalizing, the current generation refuses to live below a standard that may be a bit higher than it's generational ancestors in the same place in life.

That that said, I think the dramatic cost differences significantly outweigh the millennial's wanting a fancy smart phone.

 

[Luna1968]

But...capitalism...?

How so?

 

[WelshBloke]

That said, I do agree with taj to a point in that it seems, generalizing, the current generation refuses to live below a standard that may be a bit higher than it's generational ancestors in the same place in life.

But shouldn't everyone be part of a general raise of living standards?

 

[TheVrolok]

But shouldn't everyone be part of a general raise of living standards?

Sure.

 

[Vic]

The answer is very friggen simple. Stop. Giving. Loans. To. Morons.

There is a finite number of seats at colleges - each and every year majority of major colleges fill all the seats and they deny plenty.

Therefore, supply is limited - demand is ARTIFICIALLY HIGH because people are able to get a loan regardless of their background, regardless of their assets, and regardless of how stupid their major is. Stop doing that - and the demand plummets. Prices will naturally fall.

It's amazing, in my 25 years of credit underwriting experience, I have never once heard someone say, why do we lend to morons? Or, what's the adverse action code for stupid?

/s

But seriously, you are correct in pointing out that lenders are unlikely to make loans to borrowers with little to no demonstrated willingness and ability to repay (ie, your typical college student with no credit history and not nearly enough income, if any) without some kind of really strong collateral. This is completely accurate and reasonable.
What you're missing is that when the collateralization is so strong that it is de facto indentured servitude, that the only real default risk is the premature death of the borrower, and that otherwise the lender is effectively guaranteed repayment, regardless of how long it takes, while the interest meter never stops running... well, what lender wouldn't make that loan?

Now take a look at what you said, and see if you can see the problem.

 

[zinfamous]

Never had no use for students loans! College and grad school paid in full!!
I alsways believed that if you had to take out a loan to get through college that perhaps college was not for you@!

Dude.

School cost you like $400 per year. It wasn't that much more for me, and that wasn't that long ago.

And you're 90 or some shit.

...just to go back to value for whatever years you went to school, based on the current cost of tuition, you would have paid, in your money, something like $8k per year. (I'm just going off of the $400 base that I set).

What you are I could get away affording simply is unrelatable, in any economic way, to what is going on today.