But here's the question: why were they charging a whopping $50 a month in the first place?
And that question leads to even more questions . . .
- Is Sallie Mae aware that half of Americans earned less than $28,000 last year?
- Do they know that one in five children in the United States now live below the poverty line, and that the U.S. Census has documented a dramatic increase in poverty overall?
- Did anyone at Sallie Mae's HQ happen to see the article by Charles Murray in the WSJ, where he notes, "The average male employed in a working-class occupation earned as much in 2010 as he did in 1960?" (This quote, mind you, is not crediting Murray's overall analysis).
To be clear, the fee isn't being suspended. It is, however, going to be applied to the balance of the loan. How that works is confusing. Because Choi explains, "[Sallie Mae] will now apply the money toward the borrower's loan balance once on-time payments are resumed for six months in a row." So, wait, if the loan is in forbearance, then the $50 they are charging won't apply? The charges will only apply once they begin paying and keep it up for 6 months? Again, how is this fair, and why are they allowed to do this?
Since this piece is laced with so many questions, here are a few more:
- Why is Sallie Mae, which used to be a GSE (government sponsored entity), still using that name, Sallie Mae? It's no longer a GSE. It's a private company - it severed ties from the government entirely in 2004.
- Isn't that name misleading? So many borrowers took out loans with Sallie Mae - perhaps parents who had loans with the company still think it's part of the government. That seems a wee-bit misleading, right?
All right, enough with the questions.
Sallie Mae has been visiting AEM a lot over these past few days, and that includes several visits from HQ. Who knows who is behind these Internet searches - could just be folks in their call centers who are in debt or sick of working for a dreadful loan shark.
But perhaps the loans sharks, who seem woefully out of touch, will consider the questions above. At least an activist can only hope, right?
|Image Credit: "erin is eclectic"