That’s Right Nate

Thoughts from a right thinker.

Obama Threatens Mom and Pop Student Loan Companies

with 2 comments

I like to think of Sallie Mae as looking a bit like Betty White

I still have very fond memories of my time spent in college.   My parents obviously had plenty of money to send me to college, but my father wanted me to learn the value of a buck and had me take out student loans to pay for my schooling.   I am nearly paid off after only 20 years.

One of my fondest memories of college was filling out the papers and meeting with the helpful representatives that secured me my loan with Sallie Mae.   I will always remember Sallie quite fondly when I think of college.  I never got to meet her, but I admired her for putting her own name on the company.  I often have imagined that she was probably a poor student who worked very hard to put herself through college and now was sharing her good fortune with the rest of us.

In the current program, the government guarantees loans and then private companies loan money to the schools.  A few years ago, a major investigation found that colleges were often in cahoots with student loan companies to rip off students by signing exclusive deals with companies that gave the colleges the nicest perks, but isn’t that what college is all about?  How many of us got credit cards in college for the perks?   Now it may all come to an end.  Senator Lamarr Alexander (R-TN) said “That’ll make getting a student loan about as pleasant as standing in line to get your driver’s license.”

That is a shame.  I always found getting a driver’s license anti-climactic.  You stand in line for an hour and then presto you’re done.  It’s like, why did I just wait so long for that?   When I got my student loan, after the long wait in line I was given 4 large stacks of paper to read and sign and then got to get back in line for another half hour to turn in the paper work.   It really made me feel like I accomplished something.   Now that’s all threatened.

Sure, I get that the new system is more efficient and will provide loans for more students, but I can’t help thinking of Sallie sitting out there somewhere.  After many years of helping students, we just cast her aside.  That’s just not right.


Written by thatsrightnate

March 16, 2010 at 10:02 pm

2 Responses

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  1. You’re lucky you didn’t go to school when I did, Nate. Yes, there were lots of forms to fill out for students who didn’t have full tuition and expenses ready to hand but there was still something lacking. Many students were denied the pleasure of paying off those loans for decades after graduation because student aid was much more often available in the form of grants. No student credit cards, either. Imagine the poor graduate, facing the world, diploma in hand and debt-free. Sad was what it was.


    March 17, 2010 at 6:02 am

  2. Man, the lack of debt sounds great, but I don’t know what I would have done without that warm motherly guidance Sallie gave to me.


    March 17, 2010 at 3:11 pm

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