Monday, April 26, 2010

Take Action Now! Memo from

I received this memo from TICAS today (insomnia works wonders when you're an advocate. Ha.).

In any event, I wanted to spread the word ASAP, and I urge all of you to take immediate action. I have been leery about the effectiveness of this bill for discharging student loan debt, precisely because of the quotes I've been seeing from Sallie Mae spokespeople. That means I'll be getting in touch with some Senators' offices first thing Tuesday morning (when I'm done with my own work in Seoul and already home for the night).

Anyway, here's what I received from TICAS:

Take Action: No Sallie Mae Oversight in Senate Bill?

The financial reform bill pending in the Senate does not give the new Consumer Financial Protection Bureau full authority over all private student loans.  In fact, the new bureau may not even have enforcement authority over Sallie Mae, the largest private student lender. 
The House-passed version of the bill would give the new consumer protection entity full oversight over all private student loans.  The House bill would also require lenders to confirm with the school that the student is eligible to borrow the requested amount and has been notified of any untapped federal loan eligibility. This gives schools a critical opportunity to counsel students before they take out a private loan.

Please urge your Senators to give the consumer protection bureau full authority over all private student loans to help make sure they are only used as a last resort, when absolutely necessary.

 On a final note, many thanks to those of you who have offered testimonials for my proposed book plan on the student lending crisis. I will certainly keep everyone abreast on the forthcoming developments of that . . .


Audrey said...

I am also concerned about the "five year repayment." If Sallie Mae is charging insane amounts of money for monthly payments so the graduate can't pay them for five years then that isn't a very effective ultimately siding with Sallie Mae.

Thank you for all that you do!

Anonymous said...

Sent an email to my senators, but knowing the "Jon's" (Kyl and McCain) responses to my previous letters, I doubt it will change anything.

Anonymous said...

I would have loved to have been counsled before i took out a student loan.. maybe i would have used my head... and not got caught in this rut of debt. Maybe i would have tried to pay for it with cash and grants... yeah... thats one thing the schools just dont do.. they like to get you to sign lines. and make it like oh this high school grad is smart enough to understand real world things... Yeah Right! I was so ignorant in high school and my parents paid for that... Ugh!