The federal government established the Student Loan Marketing Association (SLMA) in 1972 to allow more people the ability to go to college. SLMA, also known as Sallie Mae, is the largest student loan provider in the country by far, and manages $126.9 billion in loans for more than nine million borrowers.
Contrary to popular belief, obtaining a loan through Sallie Mae is not borrowing money from the federal government. In reality, Sallie Mae is a for-profit corporation. Its stock trades on the New York Stock Exchange (ticker SLM), and its loans are sold to investors. Investors agree to purchase what would otherwise be “risky” loans, because the federal government guarantees the repayment of student loans. After all, high school seniors are not the world's greatest credit gamble.
Very few financial investments are guaranteed, but it is important to understand that SLMA debt securities are exactly that. Except in extremely rare cases, federal student loans cannot be discharged in bankruptcy. Even if you file bankruptcy, you still will be obligated to repay your student loans.
Educational Loan Forgiveness Programs for Teachers and Other Professionals
In addition to student educational loan forgiveness or cancellation programs available to teachers, here are some programs for those in other careers.
Rental Property Renfinancing RatesYes, although rental property refinancing can take longer and cost more than traditional home refinancing.
What is the scam that leads borrowers to take small amounts of cash in frequent refinances?Loan flipping promises a monthly paycheck from your home's equity, but it can drain your wallet and even lead to foreclosure.
Will Loan Borrowers Profit from Education Funding Proposals?The American Recovery and Reinvestment Act and the proposed federal Fiscal Year 2010 budget provide increased funding for education from "cradle to career." Will they also help the student loan borrower?
To Stay or Not to Stay with the FFEL ProgramAccording to a flash survey conducted by Student Lending Analytics, over 30 percent of responding postsecondary institutions are changing or considering a change from the FFEL program to the Direct Lending program for the 2009-10 academic year.
Guide to No Cosigner Student Loans
Are you a would-be student who would like to attend college, graduate school, or professional school, but are hesitant because you…
The advantages of using your local credit union to refinance your mortgageLocal credit unions increasingly are popular alternatives to traditional banks. While banks are privately owned,…
Debt Consolidation for Senior CitizensFew people have more financial choices, yet more opportunities to be overwhelmed by those choices, than senior citizens. Seniors…
What is the Best Loan and Debt Repayment Program?Incurring debt sometimes is necessary in order to meet one’s financial and personal goals, or to make payments for necessary…
Bad Credit Student Loans for High Risk StudentsCollege costs nowadays are through the roof and are only expected to rise in the future. Most students and/or their parents…
