Wednesday, February 17, 2010

DO NOT DEFAULT ON SALLIE MAE, Boys and Girls

If you didn't read this WSJ piece, please take a few minutes (and cruise those comments! if you ever wondered what angry people do all day, there you go). The main character in the story is a 41 year-0ld doctor practicing general medicine in Ohio. She took a variety of loans to finance her medical education; some of those loans were serviced and financed by SallieMae ("SM"). At some point she flaked on her debt. My favorite pieces (that should be made into t-shirts and distributed on college campuses everywhere):

  • She took principal of "roughly" $250,000. The total debt has grown to $550,000.
  • She defaulted on the debt, then rehabbed it, but during the course of which she was assessed separate SM fees for $53,870 and then $31,942.

Hat tip: Pilon at the WSJ.

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