Can you tell I’ve got a kid in college?
I really wanted to call this “Sallie Mae’s A Bigger Whore Than Ann Arbor”, but I thought it might scare people away. Especially the two readers I have in Michigan…so.
Yahoo recently reported the story of Michelle Bisutti. Michelle is a 41 year old MD who is a family practitioner in Columbus (Go Bucks!) Ohio.
She finished med school $250,000 in debt.
That’s bad enough.
Seven years later, it’s $555,000.
“Why?”, you ask.
She deferred her loan payments during her residency.
If one defers loan payments there are default charges and compounding interest rates.
One of the charges was a whopping $53,870 fee for turning her loans over to a collection agency!
Really, maybe I’m in the wrong business.
Dr. Bisutti admits, “Maybe half of it was my fault because I didn’t look at the fine print.” She adds, “But this is just outrageous now.”
Outrageous doesn’t cover it. It’s usury. And frankly, I thought that was illegal, must be wrong, it’s just immoral.
Tuition is on the rise. The state of Georgia announced that it would take a 77% increase at all Georgia State Universities to cover the short fall for next year. That’s $4,500.00 MORE each year just to be a DAWG! Yes, I know it’s worth it because the only thing better than being a DAWG is being a Buckeye, but really 77%? C’mon!
And people think nothing of college loans. After all it’s “necessary debt”, “college is important”, “How can you put a price on an education?”, and all that. Well, colleges everyday put a price on an education…and it’s not cheap.
Getting out of student loans is near to impossible.
File bankruptcy, everything else may go away, (including your credit and ability to buy things) but Sallie Mae’s at the door slathering on new lipstick, waiting for her pay off.
The ‘boy’ is in Nashville at a Tech School, NADC. He will come out with about $40,000 in debt. It’s a 15 month program. All during the course of the program, the family loans kick in when the school needs more cash. And Sallie doesn’t call to tell you. She sends a note.
When her emails aren’t answered, (because the password to get in won’t work) she starts calling. EVERYWHERE.
We’re not close.
And family loan payments kick in BEFORE your student graduates. Unlike the loans the student gets, there is no deferrment.
Really, I hate her.
We have a plan. His and our debt will be erradicated pronto!
As to Dr. B. She has renegotiated her debt. She only has to make 351 more payments of $900.00 per month.
She’ll be able to celebrate her student loan payoff just after her 70th birthday.