Remember when we bailed out Sallie Mae and Freddie Mac?
They were supposed to be two institutions that we can't live without. The same is "true" for HSBC bank, which has proven ties to terrorist groups and is known to work outside the legal realm but hasn't been prosecuted because they have so much money.
Well, Sallie has some new tricks up her sleeve after the whole "giving away mortgates to people who probably couldn't pay it back" thing didn't work out (or, rather, worked a little too well). Now, they're profiting from your student loans – twice. They call it the "Smart Option."
The previously unreported investments mean that 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.
Yes, you read that right. After picking on people who couldn't afford houses, they have now made it profitable to go after kids who may not be able to pay back their student loans because the economy is so bad as a result of banks like themselves selling bad mortgages that tanked the economy so much that we had to bail them out.
Or as Wall Street puts it, “Thanks.”
