ABOVE: Jonah Goldberg, Mark Hemingway and Stephen Spruiell
The Lollipop Guild at America’s Shittiest Website™ is confused and can’t figure out what to do about it.
Hillary said that students are being victimized by “predatory” student loans that charge 28% interest rates. I’m really quite serious: Is that true?
I heard Hillary quote that same absurd interest rate for student loans at a rally earlier this year, and I had the same reaction. I don’t even know how it’s possible to get student loans with rates that high.
Tonight, Hillary Clinton said, “That’s why I’m in favor of much more college aid, not these outrageous predatory student loan rates that are charging people I’ve met across Pennsylvania, 20, 25, 28 percent interest rates.” Jonah and Mark H. (and I) wondered how that could possibly be true.
If only there were some way to figure this out, say some way this could be researched on the Internet.
[Zeerp] “Hello, dum-dums.”
Why, hello, Great Gazoogle! Do you have something for us?
The giant of the student loan industry is the Student Loan Marketing Association, better known by its friendly-sounding nickname, Sallie Mae. Many people think that Sallie Mae, like Fannie Mae and Freddie Mac, is sponsored by the U.S. government. And until recently it was. But at the end of 2004, Sallie became an independent, publicly traded company, completing a process begun in 1996.
It is now radically different than it was even five years ago — an aggressive, highly profitable lender and a stock market superstar. …
“Sallie advocates policies we believe are frequently contrary to the interest of students,” says Luke Swarthout, a higher-education advisor to the U.S. Public Interest Research Groups. He charges that Sallie used its political clout to shape new legislation that will increase the cost of student loans.
Ira Rheingold, executive director of the National Association of Consumer Advocates, decries Sallie’s growing presence in the ugly business of collecting on defaulted debt. Pennsylvania state representative Doug Reichley alleges that Sallie is engaging in “predatory lending.”
Indeed, Sallie uses high interest rates and fees to charge students as much as 28 percent annual interest on loans. As a result, some have seen their school-loan debt balloon into six-figure delinquencies that they can’t hope to pay when the collection agency (which nowadays may be owned by Sallie) comes calling.
When you’re living on wingnut welfare it’s really hard to imagine how the other half lives, I suppose.