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You've Made Sallie Mae Rich By Co-Signing Student Loans

Man, some things are much easier to explain using a graphic rather than words.  Here are the words, but do not miss out on this graphic. Sallie Mae pays its executives hundreds-of-millions each year.  For doing what?  For making loans that you, the taxpayer, have co-signed.  You have assumed 100% of the risk.  All Sallie Mae executives do is serve as a middle man.  But rather than be paid government salaries for their work, their CEO makes millions. Here is how the scam works.  Sallie Mae makes a college kid a loan.  If the kid defaults on his loan, then you-the-taxpayer reimburse Sallie Mae for its losses.  If the kid pays the loan back, Sallie Mae keeps the interest.  All of it. Taxpayers assume 100% of the risk, and Sallie Mae keeps 100% of the profits...continue to full post

Full post as published by Crime & Federalism on September 03, 2010 (boomark / email).