UPDATE #3 Teresa Shaw, Federal Student Loan COO to resign amid irregularities | by pkbarbiedoll | Tue May 08, 2007 at 09:15:32 PM PDT
Amid growing awareness of gross corruption in the student loan industry, Teresa Shaw, former Sally Mae employee and (soon to be former) Chief Operations Officer of the Federal Financial Aide office quits her post amid allegations of wrongdoing in federal/corporate lending practices.
Ms. Shaw was appointed COO of the Department of Financial Aide in 2002 after a successful career at top student loan lender Sallie Mae. She recently announced her resignation (due to take place July 1st) over growing concerns of improper relations between the Department of Education and private lenders.
Like many other scandals in the Bush administration, this is yet another attempt by private enterprise to infiltrate and abuse government power to futher corporate profits. The student loan industry in particular is spinning way out of control. As thousands and thousands of borrowers have testified, lenders have gotten away with financial murder. The worst lender by far happens to be Sallie Mae, whose former CEO lives a life of luxury that even the richest of the rich envy.
The purpose of student loans is to make it possible for lower income students to afford to obtain a quality education -- an investment -- so that after graduation they can quickly pay off their rightful debt and go on to live the American Dream. A handful of borrowers manage to do just that, but for a growing majority - borrowing money for college is a one-way ticket to a lifetime of ever-increasing interest and threats of financial ruin if payments are not made in a timely manner. Lenders simply do not care if you've been involved in an accident and do not have health insurance. In fact, there are documented cases of lenders seizing social security payments from poverty stricken borrowers who are no longer able to work. ...
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment