Sallie Mae is constantly being criticized on Web sites and in chat rooms by students who say the firm is unclear about details when it makes loans and can be rude and incompetent in servicing them. A common complaint is that Sallie Mae hounds students for payments after they have paid off their loans.
The Web-based Consumer Warning Network reports that customers are frustrated by the workers at the firm’s offshore call centers in Asia who frequently get facts wrong. The group also criticized CEO Lord for getting a $3 million raise after his firm lost $213 million in 2008.
Such complaints are a reason the legislation is moving forward. However, Melissa Salmanowitz, a spokeswoman with the House Committee on Education and Labor says, “the legislation was inspired by chairman Miller and President Obama’s goal of making college more affordable and accessible for every single eligible student and to protect students and borrowers from the volatility in the market.”
The law would convert all federal student lending to direct loans overseen by the federal government and significantly increase awards.
The Annual Pell Grant would increase to $5,550 next year and to $6,900 by 2019. It also would boost the Perkins Loan program, simplify the federal loan application process and invest $1.2 billion in historically Black colleges and universities to help student stay in school and graduate.
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