The Student Loan SCAM

From the HuffingtonPost:

"The Obama administration is forecast to turn a record $51 billion profit this year from student loan borrowers, a sum greater than the earnings of the nation's most profitable companies and roughly equal to the combined net income of the four largest U.S. banks by assets."

Lets see that again: 51 Billion in Profit. Compared to:

Exxon Mobil Corp: $44.9 billion
Apple Inc. recorded a $41.7 billion
Chevron Corp: $26.2 billion 

On a related note, Sallie Mae reported $939 million in net income last year.

"University endowments and teachers’ pension funds are among big investors in Sallie Mae, the private lender that has been generating enormous profits thanks to soaring student debt and the climbing cost of education."

Education professionals are able to profit twice off the same student: first by hiking the cost of tuition, then through dividends and higher valuations on their holdings in Sallie Mae, the largest student lender and loan servicer in the country, which profits by charging relatively high interest rates on its loans and not refinancing high-rate loans after students graduate and get well-paying jobs.

Mad yet? See, states cut their funding to schools. Schools hike your tuition, reduce class offerings (which means you might be on the 5 year graduation plan). But don't worry, you can just borrow the money (and they will aggressively pitch this to you). But don't expect any jobs out there to help you pay if off anytime soon. See, while you struggle to pay your student loan, Sallie Mae makes a killing off you, and so does the school that raised it's tuition so you would HAVE to take out a loan to attend. They then invest in the lender, making money off of the fact that you couldn't afford the tuition.