Reviews About Default: the Student Loan Documentary (Amazon Instant Video)

The review about this product

Every one in the US should read this book. The current student lending system invites profiteering on behalf of the banks. And, because there are no consumer protections, a predatory lending system erupted. The default rate for private loans is so high because people simply can't afford to pay the inflated amount of the loan. Virtually every private loan is double what it originally was. If you miss three payments, due to illness, or unemployment, a private student loan will default automatically. If the loan defaults, it gains another 25%. We need consumer protections to be returned to the students who borrowed these predatory loans. It is also true that student debtors with private loans aren't 'feeding the economic machine'. They are not buying houses, cars, or contributing to a 401K, etc. Many student debtors are in their 50's or 60's.

Sallie Mae was giving students loans at an interest rate of 12% plus libor. The largest private student lender, Sallie Mae, relaxed their underwriting requirements to provide loans to students (against the SEC rules)- this is exactly what happened in the mortgage crisis. These PRIVATE LOANS HAVE NOW BALLOONED TO TWICE OR THREE TIMES THEIR ORIGINAL VALUE. Sallie Mae also pushed all delinquent private loans into forbearance to hide the delinquencies. This company is corrupt.

This is crippling the economy even further. And, Al Lord, CEO of Sallie Mae- is increasing his wealth from predatory loans.