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Saturday, May 5, 2007

Making Money from Loans

I am fully aware of how good student loans are. Without them our kids could not have attended college. We have only had good things to say about Sallie Mae and the private banks and lending companies we have dealt with. Their information is always easy to understand and if we had or have questions, their customer service departments have always been able to help us.

There is a disturbing allegation going around about student loans. The allegation is that colleges are receiving kickbacks from the student loan companies. Officials of colleges are said to hold stock in the parent companies of lenders that they recommend to students. That is definitely a no no. Congress is investigating and if found to be true the college officials may be the cause of some big changes in student loan lending.


Anonymous said...

I couldn't agree more. The good thing though about having loans with Sallie Mae is that they are affiliated with Upromise. If you have certain eligible student loans from them, you can join Upromise and use the cash savings to sweep against your student loan balance. Upromise has an online shopping portal, credit card and other ways for you to build up the account. I'm saving for my kids college and have $1,500 in my account. If you want to use it to help pay down loans, then you just link your account and it starts sweeping once it hits $25.

Dave said...

Its jacked up that they are getting under the table type pay to push kids into loans. If it was fully disclosed it would be OK by me but the disclosure woudl have to be a huge sign that says "I get paid if you use X lender. If you go with Y lender I dont"