Student Loan Giant Sallie Mae in Hot Water

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Photo courtesy of Huffington Post/Sallie Mae

If not for student loans and Pell Grants, I’m really not sure how I would have attained my college degree. The monetary aid I received was genuine to me; it provided an avenue so that I may earn a higher education.

Yet the other side of that is this: 13 percent of students who began to pay back their student loans in 2009 defaulted within three years. There is either a money management problem going on in America or a lot of these students aren’t being properly educated on the services available to them.

Well, that and that dog on Sallie Mae. Through the fantastic electronic mail service Yahoo, I still receive e-mail updates from Ms. Mae about “lowering my payments” or simply “viewing my account.” I’m sure that when I open one of those e-mails one day there will be a message with letters cut-out from a magazine asking for the money that’s owed to them.

At any rate, disposing of my student loan horror stories, there is some news that everyone should know about.

According to the Huffington Post, Sallie Mae is being investigated for “violating borrowers’ rights.” In one of the accusations, the debt giant may have violated the Servicemembers Civil Relief Act. This law protects active-duty military from way to aggressive debt collectors from garnishing checks or collecting funds in an un-fair manner.

In addition to its practices against military members, Sallie Mae’s discrimination extended unto civilians as Sallie Mae “incorrectly calculated borrowers’ incomes” and did not properly adjust accounts.

While Sallie Mae hasn’t been officially charged with any wrong doing, the findings against the company are disturbing. As of this moment, the federal government will not punish Sallie Mae and has chosen to renew its contract with the debt organization.

-JH

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