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A political inquiry I can get behind

piggyBank.jpgThe chairman of the House Education Committee has asked the FTC to investigate student loan lenders and their practices, because they might be deceptive and unfair. Representative George Miller (D, CA) thinks the promotional efforts of the industry, particularly the millions of letters sent out to students every day, “are often intentionally designed to confuse or mislead students.” He goes on to call the practice “predatory lending” and says they use “aggressive scare tactics.”

I’m all for going after student loan industry. Truthfully, I more-or-less knew what I was getting into with these bastards, and I certainly would not have been able to afford to go to law school without their financial aid (or at least, not as good/expensive a school as I went to). But I still curse them out once a month, when I make my ridiculously expensive online payments, and I’ll be continuing to curse them for at least the next ten years.

So while I’m sure nothing will come of any of this, I really just want to see the heads of Sallie Mae and the other big lenders sweat it out a little. I’m petty like that.

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Comments

Seriously, I can't stand the student loan commercials on tv, they focus only on the fact that "you don't start paying until 6 months after you leave college".

I too knew what I was getting into, and luckily a combination of federal loans and a specialty company from my state have made it less risky to do so.

Yet, 6 months into my repayment plan, I get about 4 calls a day, and 4 letters a week from companies. And they tell me it's of the "utmost importance" and I "could be missing out on low rates", when all they want is for me to pay them tons of interest.

It's all bullcrap and annoying, and every college grad with loans would agree.

I don't have any problem with the Mae family (Sallie, Nellie and the gang. Seriously, could they have picked any dowdier names?? No offense to any Sallies or Nellies out there!) I researched my loan companies very carefully.

It is the fact that my mailbox is FULL of random loan consolidation offers that I didn't ask for! They put them in very official looking envelopes, with things like "Urgent Information About Your Student Loans" on the outside. It makes it seem like they're contacting me about my current loans, when it's really just an advertisement for their loans. If you're not my lender, I don't want to hear from you!