OSPIRG's List of Grievances against Sallie Mae

Students are overly-reliant on loans to pay for college.Facing debt, qualified high school graduates choose not to attend college. Once in school, students have to work more hours to pay down that debt. And 65% of graduates average about $25,000 in debt.

Sallie Mae, the largest student lender in the country, profits from deep student debt while supporting policies that further abuse students and taxpayers.

List of Grievances:

1. Sallie Mae has received billions in profits through excessive federal subsidies, and lobbies against using those funds for student grant aid.

2. Sallie Mae spent $3.48 million in federal lobbying in 2009, an increase from $3.2 million in 2008.

3.Sallie Mae received federal bailout money to make high-cost, risky private student loans to students. Private student loans are more similar to credit cards, carrying variable interest rates up to 18% and weighty penalty fees.

4. Sallie Mae fights against consumer protections for borrowers. Private student loans are the only form of consumer debt that cannot be discharge in bankruptcy, as a result of Sallie Mae advocacy. The interest rate on a Sallie Mae private loan is at least 5% higher than that of the federally subsidized student loan. The company is known for refusing to re-negotiate the terms of its private loans when borrowers encounter impassable financial obstacles.

5. Sallie Mae executives receive excessive compensation. Al Lord, Sallie Mae’s CEO, recently built his own private 244-acre golf course just outside of DC. He also attempted to buy the Washington Nationals baseball team.

Take Action:

https://www.ospirgstudents.org/action/higher-ed/take-a-swing-at-sallie-mae