Published On: September 15, 2013

The Next Financial Balloon to Burst: Student Loans

ore than $221 billion of these loans at the largest banks will hit this mark over the next four years.

According to the The Huffington Post:

 Sallie Mae, the nation’s largest servicer of federal student loans, is failing to enroll many of its distressed borrowers into one of the Obama administration’s main initiatives for alleviating high student debt.

Officials have cautioned that the government figures cited by HuffPost are just rough estimates, but so far, they are the only available indicator of how Sallie Mae utilizes the loan relief program.

Think about the information you are giving this stranger: all your financial information, your children’s names, bank accounts and your social security number. You do this without the slightest guarantee that the information will be kept safe.

Documents obtained by The Huffington Post and estimates provided by the White House separately suggest that Sallie Mae, or SLM Corp., has enrolled relatively few borrowers into the Income-Based Repayment program. Sallie Mae dominates the now-discontinued Federal Family Education Loan Program, owning between 37 and 40 percent of the outstanding FFELP debt held by the private sector. But its share of FFELP borrowers who are enrolled in IBR (Income Based Repayment programs) is about half that, or 15 to 18 percent.

Outstanding federal student debt has nearly doubled since 2007 to $1 trillion, government data show, while the average borrower with federal student loans now carries more than $26,000 in debt — a 42.7 percent increase since 2007. The IBR program has emerged as President Barack Obama’s signature tool to address this burgeoning crisis.

Read the entire article…

CLICK TO OUR WEBSITE

Sallie Mae is in the news again, this time for lagging in supporting and implementing IBR (Income Based Repayment). Sallie Mae’s failure is no surprise to me or those representing borrowers/guarantors. I don’t want to get on my high horse here – but the abuses of the borrowers are outrageous. Sallie Mae is paid to assist student loan borrowers, so perhaps it is time to revoke Sallie Mae’s contract so as to make room for an entity that will comply with regulations.   Supposedly Sallie has a net worth of over 937 million dollars.  So why are they ignoring their responsibilities?

Don’t misunderstand me, I am all for people paying back their student loans. There is a waterfall effect if someone does not repay their loan then there are no funds for the next person and the next person.  But, there must be consideration as to the amount of money loaned and the need for educating the borrower and guarantor.

By |Published On: September 15th, 2013|Last Updated: May 29th, 2022|

Share this article

About the Author: Diane Drain

Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*

Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau
5 / 5

“You folks are the BEST OF THE BEST in Arizona.” M.H.

You and Jay are the best attorneys I have ever had or needed and thank God for the Honorable Robert Gottsfield in recommending you folks – I would have never made it through the entire process without you and Jay and God Bless you both always and stay in touch as well. You folks are the BEST OF THE BEST in Arizona.

5 / 5

“My only regret is that I didn’t find Diane sooner.” K.H.

I can’t say enough good things about Diane. The way she handled my not typical circumstances was amazing. I was very nervous to start the bankruptcy process but Diane just has a very comforting way of explaining the whole process. My only regret is that I didn’t find Diane sooner. If you find yourself in a financial situation that you can’t correct on your own, please Call Diane Drain as soon as possible.

5 / 5

“Filing for bankruptcy can be a stressful life event” R.A.

Filing for bankruptcy can be a stressful life event, and selecting the right attorney can add to this stress. Diane and Jay were a pleasure to work with, and it is obvious that they are passionate about helping people get their life back on track. I would highly recommend them if you need a bankruptcy attorney.

Related Posts

  • Published On: July 24, 2022

    Want to avoid dishonest debt collectors?  Watch this video from FTC’s Consumer Advice By Joseph Ferrari,July 22, 2022 (reprint from FTC, Consumer Alerts) During Military Consumer Month 2022, the FTC [...]

  • Published On: July 20, 2022

    BEWARE OF THE SECRET COSTS OF USING ‘BUY NOW PAY LATER’!! What You May Not Know About These Services Services like “buy now pay later” now account for $100 [...]

  • Published On: June 13, 2022

    Diane Drain received the 2022 Preeminent Award and Gold Client Champion Award from Martindale-Hubbell. The 2022 AV Preeminent award is given to an "elite group of attorneys who have been rated highly by their peers [...]

  • Published On: April 18, 2022

    Education Loans Can Be Discharged in Bankruptcy Busting myths about bankruptcy and private student loans By Robert G. Cameron – APR 12, 2022 (Reprint from Consumer Financial Protection Bureau "www.CFPB.gov".  The following is an [...]

My intention is to put you back in control of your life
Start with $0 down*. We provide affordable payment plans.

FREE CONSULTATION