Students fight college loan intrest rates
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Students fight college loan intrest rates

Date: November 1, 2006
By: D'Anthony White
State Capitol Bureau

Intro:  The nation's foremost provider in student loans has been called a predatory lender and is speaking out.  D'Anthony White has more from the Capitol

RunTime:
OutCue: SOC

College loans have made higher education possible for millions of students.  What is often considered the American dream can become a life-long finincial burden. 

Alan Collinge calls Sallie Mae - the nation's leading provider of student loans - the "Bully in the Schoolyard" as result of its lending practices.  On studentloanjustice.org students write about their ballooning college debt.   

Millions of dollars in loans from MOHELA may go on the auction block.  Govenor Matt Blunt has proposed selling assets of the state's college loans to another guarantor.

Collinge says that interest and penalties have caused his debt with Sallie Mae to triple.

 

Actuality:  COLL1.WAV
Run Time: 00:16
Description: Collinge- I lost track.. further into the stratosphere

In response to Collinge's criticism, Sallie Mae spokesperson, Tom Joyce says, the marketing giant has provided over twenty one million students with loans for college. 

He goes on to say few of Sallie Mae's borrowers can manage their loan debt.

 

Actuality:  JOYCE1.WAV
Run Time: 00:11
Description: Joyce-- obviously we'd disagree.. our role helping americans

The cost of attending college is fast increasing. It's estimated that today it would cost over eighty-thousand dollars to attend a four-year private university - making it difficult for students to avoid taking out a loan. 

But Joyce says taking out a college loan is a wise investment in a borrower's future.

 

Actuality:  JOYCE3.WAV
Run Time: 00:10
Description: "The College Board will tell you in their annual study that, the average college graduate will make over his or her lifetime about a million and a half dollars more than a high school guaduate"
 

Collinge says it's common sense that loand must be paid back. He calls Joyce's comments a "knee jerk" reaction.

Actuality:  COLLFINAL.WAV
Run Time: 00:15
Description: "I nor anybody from my orgnization are saying that we are not requiored or shouldn't be responsible for paying off student loans.  Duh. Everyboyd realizes these are laons that need to be paid back."

Collinge says the issue isn't repaying the debt.  It's the amout of interest and penalities added onto the original loan.