Student Loan Scams 1 – Sallie Mae, Part 4
August 22, 2010 by Guest Author
Filed under Student Loan Information
[Part 4] Sallie Mae is the largest student loan company. We look at a 60 Minutes report on Sallie Mae and how Sallie Mae, with the help of government, makes a lot of money off of student borrowers.
Video Rating: 4 / 5
Perhaps 30 years ago having a college degree was a plus, but nowadays it really doesn’t matter. If I knew then what I know now, I would have skipped going to college and avoided the headaches and aggravation that I’m dealing with now thanks to SallieMae.
@DontGoToCollege
Maybe you need a lesson in compound interest. While there are various types of compounding interest, the method most costly to a borrower involves continuous compounding.
Using your scenario:
1-year, $100 loan with simple compounding:
$100 x (1+.08) = $108 (as you correctly state)
1-year $100 loan with continuous compounding
$100 x e^(.08 x 1) = $108.33
“You are paying back more like $200. Thats what most people don’t understand.”
Unfortunately you do not either.
@Quiksilver209 Uhh…. Yeah they did. Remember high school when they tell you if you don’t go to college, your life is over? Or parents that push their kids into going to college?
OK while I agree with the idea that Sallie Mae is legal loan shark I think the blatant attack on peoples need for an education is misplaced. I notice he uses the word “socialist” which is a coed word for the right to attack any program that might be useful. He makes all these critical points without offering up any solutions.
I told one person this and they said “oh they can’t repo your mind” assuming a diploma mill is gona “increase your mental ability” with their every increasing JUNK MAJORS and more “requirments” to graduate. These criminals will turn you into a dept slave if given half a chance, a dept slave that has NOTHING to call their own because all they work for goes to these same criminals.
@dvdcervantes Thanks at first I thought it might be worth it but as time went on I just don’t think it is. The classes went through very fast and I don’t had time to study or get tutor cuz I also work too and the debt is already too much to bare so I figure it’s best to pay it all and find another way and that’s what I did.
@blueswan1984 That was a wise decision!!! Thank goodness you dropped out of that program/institute. The Media Arts and Animation degree from the Art Institute is NOTHING!! All it gets you is freelance jobs that don’t pay enough to even make a “dent” to your student loan debt. It’s not worth it. If I would’ve known more about the degree AND Sallie Mae, I would’ve dropped out too. Enjoy your debt free life buddy.
P.S. Don’t go to the Art Institute unless mommy and daddy are paying for it. lol
I really feel bad for the science graduates, you need to go to college for that.
i think the moral of the story is to consider PUBLIC COLLEGES AND UNIVERSITIES! why pay goo-gabs more money for the same degree you can get by simply going public?!
@DontGoToCollege Our country is sure Fuked up. A good education is not given much worth anymore. It is not about what you know. It is about who you know. Not much to do with people skills but I call it nepotism. Why you think we are in the financial mess we are now? we have complete morons running our country and not the best and brightest. This includes not only in politics but companies as well. People with PHD working in walmart when you have High school graduates managing them.
@TheCashistrash I agree. If i started working straight out of HS i would be in much better shape. What a waste.
Everywhere we turn this System is designed to keep us in debt, and that’s it!
We are born, wer’e owned, we are mass producing robot slaves. We buy into the the “status” symbols of College, Marriage, Mortgages, Cars, etc…my advice?…Know that we are not alone (God) know who you are, do what makes you happy, don’t hurt anyone…Love yourself and each other
I don’t understand. If you took out all those Student Loans why should you be allowed to get away scott-free when you realize you can’t pay them? Isn’t that a con? “Oh I’ll take out 50k in student debt then file for bankruptcy.” Wtf? Do they not know the Law of Nature?
i keep telling people don’t go to the universities start working and educate yourself. IF you can live with your family and friends to save money. Save save save all the money you can from 18-30 years of age and then become your own boss. after you learn a trade such as construction, cooking, baking, installing electronics for people such as security systems whatever is better than working for someone else.
man if i had known this i would have never gone to college and saved myself about 60K dollars in fees and lost wages for 5 years. Total opportunity cost of lost wages plus cost of fees is about 100K dollars. it was not worth it. I would have been about 100K dollars richer now. At least im out of debt, but i would be rich now if i had not gone to school.
@blueswan1984
That’s great you got out before the debt got too bad.
I wish I’d have done that.
omg i wish i learn about this sooner, i once attended the art institute of portland in 2007 hoping to get an associate in media arts and animations and after the 1st semester i owed over $6,000 in loan that i had to pay back to sallie mae. after that i was thinking if i continue to go to this institute i will die sooner than i live so i instead drop-out, go back to my assembly job, live with my family, and is now able to get back my life, my friends, and my financials free from debt.
@swinggcat1 I went to state school, when i went it was 2k/ semester and rent was 200USD/month.
ehhh… I guess you are right. Remember the golden rule; when you are doing the same thing everyone else is doing, than you are doing it wrong.
@Quiksilver209 You’re kidding, right? “No body” told me to go college? EVERYONE told me to go to college!!!!!!!!!!!!!
Don’t blame Sallie Mae, blame yourself. No body told you to go to college.
man its time for a change
America is fucked up. We really need a change fuck the bullshit.
I got a 10,000 loan over less than two years.
shit i currently got a loan for 20,000 dollars