Wednesday, October 12, 2005

Sallie is a Whore

One thing I've discovered as a landlord: Americans are totally ripped off on education.
Over and over again I see this huge student loan debt on applications from people who have jobs as waiters and retail clerks getting maybe 2000/month. It's sad. They have $30-60K or more in debt for what? I can't tell whether they went to legitimate institutions or rip off trade schools, but it's clear something is broken.
There has got to be more strict accreditation or some different kind of rule. I would say Most of the people under 30 who apply have big student loan debt and some kind of entry level job. That is certainly an artifact of our apartments to some extent (people under 30 love the neighborhood and won't live in the burbs. It's the more trendypart of Portland. ). But even so, there is a large segment of people just getting started in life who have an absurd debt burden without getting the foot up into better jobs that supposedly higher education would give them (not counting film majors). If this happens to one percent of the population, that's $20 Billion in unnecessary debt very roughly. Sallie Mae (SLM NYSE) had $80 Billion in outstanding debt in the most recent quarter.

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