Spilled Expresso

http://www.nytimes.com/2007/04/15/education/15direct.html?pagewanted=3&_r=1&hp

The above article is another piece on the University loan situation. I admit, the media is getting a little obsessed with this issue, however as a college student directly affected by these scams, I am biased, and it angers me. The article above discusses how Sallie Mae and others, offered universities money to leave the direct loan or Stamford loan programs. These programs are the federally funded student loans. Apparently, as the article explains, as there are two federal loan programs, the universities decide which one to participate in. what makes this situation even more sickening than the original announcement is that while private loan companies such as Citibank and Sallie Mae offer similar rates, federal programs offer much cheaper rates. While the difference between private and government loans may seem insignificant (about 2 percent) the difference is huge when you are taking loans out in the thousands. Also, private loans like Sallie Mae start charging interest from the get go, where as federal loans don't start charging interest until after you graduate* excluding of course parent plus loans, which require borrowers to start paying at the end of the year they borrowed. Of course, Pace University is mentioned in this article as well. According to the article, the University was offered 4 mil to abandon the Direct Loan, and they passed it up, but later left it anyway.
I can't even imagine how much worse my debt would be if I had only could get outside loans. Shame on you Sallie Mae.