Defaulting on student loan payments and falling into debt after graduating college is a fear that many students have in common. With the practices of Sallie Mae, a large federal student loan company, working against them, this fear may become more of a reality for some.
Sen. Elizabeth Warren (D–Mass.) is boldly taking a stand against the student loan giant after stating that she fears that Sallie Mae may take more steps to hurt their borrowers than they do to help them.
Even though the Department of Education has previously found that Sallie Mae has indeed broken federal rules, harmed borrowers and incorrectly billed the U.S. government, they still decided to renew their contract with the company for another five years.
According to the Federal Reserve, student debt has skyrocketed up to a total of more than $1.2 trillion and has risen a total of 47 percent in the past four years alone.
Warren worries that these financial burdens are threatening the futures of numerous young Americans, so she is fighting to make Sallie Mae’s practices more transparent so that anyone would be able to see that the student loan company was in fact taking steps to keep students on the right track for successful repayment.
Students need more advocates like Warren to fight against these companies that do not have their best interest in mind. Sallie Mae and other loan companies cannot keep hiding behind the fact that the Education Department refuses to disclose any information about their student loan programs, performance information and portfolios and need to do what they say they will.