OCCUPY STUDENT DEBT

-Federal financial aid has shifted from a grant-based system to more of a loan-based system. Last year, student loan debt surpassed credit card debt for the first time in American history. Grants used to cover about 70% of tuition but today only 34%.

-36 million Americans have Student Loan Debt

-2/3 of American college students take out student loans

-Experts estimate the price of free public higher education at $15-$30 billion

-Since 1978 college tuition has skyrocketed over 900% while, simultaneously, funding for grants continue to be slashed.

-Since 1999, student debt has increased by 511%, nearing $1 Trillion.

-at least 1 out of 5 students currently DEFAULT on their loans, resulting in devastating consequences, including: exorbitant fees and penalties, exploding and usurious interest rates, destroyed credit ratings, possible suspension of driver’s licenses, possible suspension of professional licenses, and more.

-$96 billion a year is loaned to people attending college

-Dept of Edu expects that more than 46 percent of all federal student loan dollars borrowed by for-profit college students in 2008 to end up in default.

-Class action against Sallie Mae for moving as many problem loans as possible into forbearance to hide the true number of private loans that were delinquent or in default, in violation of Generally Accepted Accounting Principles and Securities and Exchange Commission regulations

-Bribes have been paid by loan companies to colleges and universities so schools recommend their loans.

-Sallie Mae set aside $3.6 Billion in stock for employees

-Your late fees = BIG $$$ for student lenders

-Ten years ago, 1 in 14 American consumers were pursued by debt collectors. Today it’s 1 in 7!!!

-Outstanding student debt has climbed 25 percent since the start of the financial crisis in 2008

-Just in the 2003-2004 election year, John Boehner received over $200,000 in campaign money from student lenders.

-Sallie Mae CEO makes bid for Washington Nationals

-Sallie Mae CEO, Albert Lord investigated by congress about possibly receiving an inside tip from Bush administration officials before he made a call to his broker to sell 400,000 shares of the company’s stock.

-“I hate rules”
-Albert Lord

-“Once individuals pass the age of 25, loan collection becomes highly reliable.”
-Albert Lord

-Sallie Mae CEO, Albert Lord made $225 million

-SLM Corporation’s subsidiary companies are Academic Management Services Corp., Arrow Financial Services, First Trust Financial, General Revenue Corporation, GRP Financial Services, Nellie Mae, Noel-Levitz [Link: http://www.noellevitz.com], Pioneer Credit Recovery Inc., Sallie Mae Bank, Sallie Mae Home Loans, Sallie Mae Inc., SLM Financial Corporation, Southwest Student Services Corporation, Student Assistance Corporation, Student Loan Finance Association, Student Loan Funding and Upromise.

-18% interest rates for some private student loans

-“Because of its relationship with USA Funds, Sallie Mae wins when borrowers are delinquent on their loans. And because it owns a group of collection agencies, Sallie Mae wins when borrowers’ loans go into default. And because the loan company effectively controls the entity in charge of monitoring its default prevention activities, no one is looking out to protect borrowers from abuse.”

-“Sallie Mae makes money if you pay back on time. And Sallie Mae makes money if you don’t pay back on time.” -Elizabeth Warren

—Sallie Mae aims to expand fee-income business to $1 billion a year (ie: Debt collection on the private student loans that Sallie Mae issues)

-“Let’s say a graduated student defaults. The government pays Sallie Mae both the principal and the interest compounded. But the loan is still subject to collection. Guess who owns some of the largest collection agencies–you guessed it, Sallie Mae. When its collection agency collects, it gets 25% of the recovery. The profits go to Sallie Mae.”

-“Sallie Mae has a vested interest in college remaining extremely expensive, because then they can lend huge amounts of money and reap huge profits from interest charges or collections charges. Sallie Mae needs to grow its loan portfolio to increase profits.”

-Sallie Mae/Upromise investigated by FTC