Student Loans
December 30th, 2008
So, I opened a letter from SallieMae yesterday and I take a peek and realize it’s a student loan collection notice for a friend of my wife’s…. I guess my wife was put down as a reference for this friend who took out a student loan with them, and apparently she’s not paying her loan payments. And, I also realize I accidently opened a letter for my wife — d’oh!
Coincidentally, there’s an article in the L.A. Times regarding student loans titled “Student loans turn into crushing burden for unwary borrowers“. The beginning of the article recants a tale similar to the friend of my wife’s — also from the same lender, SallieMae. Interestingly enough, it sounds like college entering kids are getting suckered into student loans which they _thought_ were low interest, federally backed loans only to find out that larger portions of the loan are high interest, normal rape-my-pocketbook loans. By the time they find out they’re in the hole $100K+ with an 18% interest rate and a useless degree in Ancient Chinese Philanthropy. (Sorry, couldn’t resist the liberal arts degree joke.)
I could go on and on about the growing uselessness of America’s Colleges in general, but I won’t. Instead, all I’ll say is that tricking young college-bound students into high-interest loans for education is just a pathetic way to make money.
(Semi-related: Ed in NY Times entitled “Should the Obama Generation Drop Out?“)