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When the time for a new term would come up, the students would be dragged into a grilling session to grill them for more loans. "Sign this or you can't go back to class!" No time to consult with a parent, lawyer, or anyone responsible. But, since many people they targeted had parents that had no experience even buying a house, nevermind signing for loans with hidden interest rates.
The students would be pushed through whatever program the schools could peddle off that were "hot". Graphic Design, Medical, Animation, Game design, and more. Anything they could catch the eye of the newest generation of first time college buyer. Students would catch on and leave because these were not quality. They would swamp the students with debt. Students would leave the school and end up under employed, or they would try to get a job through the school, in AI's case, top employer, HOME DEPOT in 2005. Then Sallie Mae would take over. Sallie Mae would catch the student off guard with 2 bills, private and Federal. Sallie Mae will then work as hard as they can to push that student into default, losing payments, lying about payment applications, throwing students into customer service loops from hell, and worse. STudents would default on their federal. Sallie Mae would then use their next arm of financial dominance. They would use the Department of Education to utilize their own collection company, Pioneer Credit to tack 25% on the defaulted student loans and garnish the student for 15% of every paycheck, without any type of litigation needed. So if nobody paid the private ones, it didn't matter, Sallie Mae was still making a ton off the Feds. |