My experience today with Sallie Mae

This is something that is so unreal it feels like bizarro world. So Sallie Mae screwed up my loan account and they called me. Sallie Mae for those who don’t know is a FEDERAL loan program and this part is important to remember. Anyway the person I spoke to was from India I believe and she said yes it was overseas. I asked to speak to a supervisor and he too was overseas and there were NO Americans I could speak to. Yep so not only do they get tax money but people overseas get the job. Did I mention Sallie Mae used to be in Kansas or somewhere like that until recently?

So then I called the Democratic Party to complain about this since they are supposed to be the party of the average person (ha!). The guy LAUGHED at me and said they didn’t care that more jobs are going overseas and Obama will be re elected anyway even if I don’t vote for him which I won’t (I am voting third party).

I am so disgusted about this. He claimed he would bring back jobs and instead more jobs go overseas. Meanwhile I haven’t worked in 4 years, and I have two worthless degrees.

8 thoughts on “My experience today with Sallie Mae”

  1. Sallie Mae is a publicly-traded corporation, and their ticker symbol is SLM. They do (or did) have federal guarantees for the student loans, much as Fannie Mae and Freddie Mac had federal guarantees for home mortgages.

    Just because a loan is backed by the federal government doesn’t mean that there are any meaningful limits on how they can conduct their business. I’d make the first step for qualifying for a federal guarantee or bailout to be that the work is done entirely inside the United States. Too big to fail is too big to exist.

    You might as well be angry at the banks that granted student loans, because many of their call centers are overseas.

  2. A local radio station aired a segment about student loans and the “perils” involved.

    They noted that not everybody bothers to read the fine print when they sign on for a student loan — they think the school is the one who issues and runs the entity that doles out the loans.

    Not so.

    They’re in for quite the shockeroo.

    It frightens me how easy it is to obtain a student loan — the proprietary schools are handing them out like penny candy. I can imagine how many of the recipients don’t read the fine print on those loans, either.

  3. I read the loan and I wish at this point I hadn’t taken anay out. Ironically I was almost paid off when I took them out for grad school (which was a waste). I am angry at the banks too (Chase is a disgrace)but think it is horrendous that companies get bailouts and tax money to send jobs overseas.

  4. I read my student loan promissory letter and got ticked off. One of the provisions was that even if I paid off the loan early, I would still owe all the interest for the unexpired length of the loan. I think that the loan in question was $4500 at 7% in 1983. I was leaving for graduate school, and had the money in hand to pay off the loan, which had another 9 months to go. I figured that I was better off to pay off the $1600 or so that I owed on the loan and have it paid off than to not have it paid off.

    I had a much better experience with Chase, but remember that I took out student loans 1977-82. All of my student loans were subsidized, and Chase gave me extensions on not having to make payments until I was nine months out of graduate school. I had been a part-time graduate student from 1982-1985, earning an MBA and 15 semester hours of math and physics courses along the way. They gave me a “daily interest” repayment. My basic payment on $7500 in loans was about $88, which is what it would have cost to pay off the loan over 10 years, but if I wanted to pay extra, it would go directly to principal without having to write a letter telling them to do it. I paid that loan off in about 2.5 years, in part because I had gotten promoted and was making more money.

    I doubt that many students read the loan paperwork. I just told a young adult that he might be better off to get his license as a plumber than to worry about going to school. He works for his father as a plumber.

    They don’t get bailouts to send jobs overseas. They do that all on their own. The failure of our government is to put in restrictions on what they can do with the money and enforce the restrictions.

  5. I believe that you are making an error of logic in blaming the banks or whoever sent jobs overseas before or after getting a bailout. Local, state and federal authorities failed to uphold the public interest and force companies to keep jobs here or repeal tax incentives. There has been a big game of chicken happening for at least 30 years, where businessmen hold up communities for tax benefits for everything from building a big box store to a sports stadium. They do it because they can, because people are afraid that “the jobs will go elsewhere”. Most of the big box and stadium jobs pay somewhere around minimum wage, so the tax incentives or public funding doesn’t make sense economically. The game being played is to privatize profits and socialize losses. In other words, heads they win, tails you lose.

    I believe that companies that are too big to fail are too big to exist. The mistake that we made in 2008 was to fail to nationalize the banks. I think that Norway did this a couple of decades ago. It was the only way to ensure that the public shared in the upside when the economy did recover. If you consider the depth and persistence of the current recession, it’s quite surprising that more corporations haven’t gone bankrupt.

  6. When you give a firm a bailout, you encourage the behavior that led to needing the bailout in the first place. If we had let the banks fail in 2008, it would not have been pleasant, but we’d be over it by now.

    Except that the banks wouldn’t have failed in any case. In that time frame, the Federal Reserve lent some $16 trillion to big banks in the US and around the world. If the government/taxpayers had not thrown in another trillion or so, nothing much would have changed.

    Through the early 1980s, banks were so tightly regulated that they might as well have been nationalized. They all paid the same rates of interest and did the same things. It was a model that had served us well since the 1930s.

    But a lot of corporations have gone bankrupt: it’s just that you only hear about the biggest. And even some big names have gone down. Ten years ago, if I wanted to buy electronics, there was J&R (a local business), CompUSA, Circuit City, Computer City, and Best Buy. Now only J&R and Best Buy remain, and the flagship CompUSA store on Fifth Avenue has been empty for ~5 years. (By the way, J&R is now the only decent record store left in NYC.)

    Beyond that, the number of small businesses is down as well. The current business climate is still that rotten. Businesses are failing, and people are discouraged from even trying.

  7. Not to mention Best Buy is in a terrible situation too and they are closing stores, including one of the ones by me.

    We never should have given a bailouts to the banks. They used the money foolishly to begin with and still are with bonuses. I mean how many of us got huge bonuses from jobs? I never did.

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