Attending college is a smart move for a number of reasons. Of course, it is going to cost you to do so, but fret not. Sallie Mae is more than happy to loan you money to go to school to better yourself and your ultimate earnings potential.

Just how big is this student loan behemoth? It is huge. Over 10 million people have taken out student loans with it. The total amount borrowed? A stagging one hundred and thirty billion dollars. That's a lot of education!

So, who was the bright entrepreneur who thought up Sallie Mae? This may shock you, but it was the federal government. Created in 1972, Sallie Mae was a quasi-government agency formed for the purpose of administering government backed student loans.

This was one government program that was an unmitigage success. One of the reasons the United States is a strong society is the large middle class. The efforts of this under the radar quasi-agency had a lot to do with that.

Don't fix something that isn't broken. It is a common statement, and one not followed here. Sallie Mae was privatized in 2004. You, I and just about everyone can buy its stock on the stock market and profits have become a big deal.

As a publically traded company, the issue is no longer getting people into and through higher education. The bottom line is now the focus. This evolution has spawned serious criticism of the entity and how it conducts its business.

Just last year, there was a proposal to take Sallie Mae private. This would have put the company decisions behind closed doors. Criticism was immense and pressure was applied to the deal which ultimately broke down.

As Sallie Mae has focused on profits, it has become extremely aggressive about collecting on loans. The company will call the borrower, their family members and so on to force repayments. Such conduct is very controversial and possibly illegal.

Sallie Mae has also been pressuring universities to turn over information on students pursuant to the Freedom of Information Act. Universities have balked and the bad publicity has resulted in Sallie Mae stepping back for now.

The company may have evolved to a bottom line predator in one sense, but there is litte doubt it still plays a critical role in our society. Without Sallie Mae, higher education would not be a possibility for many people.

Aazdak Alisimo writes about student loans for USStudentLoanCompanies.com.

Article Source: http://www.therealarticles.com

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