At an April 27 Sallie Mae seminar in Los Angeles, Southern California students showed up to protest the education lending giant’s stand on the Single Holder Rule, which eliminates refinancing options for many college students and graduates.
Students called Sallie Mae “a predatory lender” and accused the company of discouraging competition through disingenuous means.
Sallie Mae is the largest education lender in the country. Its closest competitor is Citibank; still, Sallie Mae originates, holds, and consolidates more than four times the volume of loans that Citibank does.
The “Single Holder Rule” prohibits borrowers from choosing which company will consolidate their student loans if only one lender holds all education loans. For example, a student whose school automatically assigned her loans to Lender X and who did not actively decide to use a different lender may now not choose to consolidate her loans using Lender Y.
Since Sallie Mae is the only holder for many individuals’ student loans, the company stands to gain billions now that the rule is being actively enforced. One protester called the rule “the single most anti-competitive, anti-consumer law in the country”
At the protest, one student carried a picket sign reading: “What Do Sallie Mae and Tanya Harding have in common? They both eliminated competition.”
Others displayed slogans such as “Sallie Mae is number one because she got rid of everyone,” and “Sallie does not have our best interest rate at heart.”
The group also distributed critical articles from Fortune, the New York Times, and nationally syndicated columnists.
Article Title : Sallie mae sparks student protests
Comment not found for this article.
Share this story:
EdFed introduces… Awareness… Learnal
At, EdFed, we proudly introduce 'articles on student loans' and 'Learnal - the journal to learn from', our free newsletter on student loan management, which is sure to keep you informed of the latest events and happenings in the student loan market. To receive your copy of the above just use the RSS feed below and add this to your "My Yahoo", blogs, newstickers, and other similar channels accepting distributable content.
Click here to sign up for our Weekly Newswire now!
How EdFed Helped others!
Consolidating my federal loans reduced my interest rate and my monthly payments by $512.36. Now I can confidently say that I am on my way to a debt-free future. Thank you so much EdFed! - Daniel N. Columbus, OH
Student Loan Consolidation Info - How to Choose the Right Loan Company
The Career Resources column is presented by Granted, America's leading job search engine dedicated to getting people jobs.
Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.