Sallie Mae Execs Celebrate Record Student Loans In Hawaii - My Thoughts

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Sallie Mae Celebrates Record Student Loans In Hawaii

Sallie Mae flew 100 of its employees to Hawaii to celebrate $5 billion in student loans issued.  

This is according to a story first reported by NBC NEWS and then by many other news outlets as well.  The scenario is nothing new however as these sort of celebrations and trips are and have been a normal celebration for many decades.  So the essential story goes like this, Sallie Mae issues a large amount of student loans and celebrates with a hundred of their employees.  What is the harm?

For many Americans student loans are not a pleasant subject to talk about.  It is estimated that next to mortgages, student loans are now the second highest type of debt out there and for many the loans are federally insured, meaning there is little way out of paying them.  For many it is a sore subject as this type of debt has hindered many borrowers with payments and large balances.

So when the public catches wind of the celebration at the expense of their suffering you can see why many people are mad.  Social media had a field day when they heard about it with all sorts of comments.  I have to admit my first reaction was not a pleasant one at all as well but my attitude quickly changed.

Celebrations like these are not out of the ordinary, as many different companies have their own reward or celebration system in place… and good for them.  What I am upset with is the fact that so many are still borrowing even after seeing so many students before them comment how it is hindering their financial life after college.  Unfortunately I think student loans have become the norm and while not all people who take out student loans hate them, it is safe to say most are not fans.

I will however say I am upset at the system in place for higher education, from the government who backs these loans, the universities & other schools who take them and the students & parents who take them out not thinking of how they will work out in the long run.  For the government to allow a kid, yes high school graduates are still kids, to get a loan with a credit line that rivals that of a home mortgage is appalling.  How can we allow our government to back loans where we know the student doesn’t even have a job or income?

How about the universities who continue to depend on these loans to fund their pet projects from stadiums to unnecessary programs.  Universities are adding amenities to schools but does not add value to the issue at hand… higher education.  Or how about the different schools that are popping out left and right everywhere that are accredited  yet have a very low graduation rate.  The bar for a higher education school has been lowered and the student loans have only added fuel to that fire.

Let us not forget that there are students who voluntarily sign up for these loans as well.  How about the parents who co-sign or don’t advise their children on how they work or how it will play out in the future.  So many things can be done to avoid these loans or use them in a way that is more effective in the long run.

Yes I realize there are many who use them, pay them back, and are thankful for the help.  Unfortunately there are far too many who use them, don’t know how it can effect them in the future, how it can hinder them financially and worse many don’t ever graduate yet still carry the student loan debt.  There are too many fingers to point on this issue and  this article as well as the reactions to it do a good job of showing what is wrong with our outlook on personal finance, personal responsibility and bad government policy.

If you are one of millions of Americans who are suffering with paying off student loans, what can you do?  Check out my advice on paying off your student loans faster.  

If you are a student or parent here is some advice on preparing to pay for college.

In case you are wondering what I see as a real estate agent with buyers who want to buy but have high debt check out this video.  These are real life examples I see myself, so don’t be like them.

Also I am a big fan of DaveRamsey.com they are the real deal on personal finance from getting out of debt, paying for college and living your best financial life.  The team at Dave Ramsey also has a special podcast they did in regards to this exact topic call “Borrowed Future” where they discuss the issue in many different aspects.

As you can see I am passionate about helping YOU be a better real estate consumer and while student debt is not on my job title I talk about it because it effects people who want to buy every single day and I want to make sure you know about it.

If you are thinking about buying, selling or just have a real estate question please do not hesitate to reach out and contact me.

With the heart of a teacher, I am here to SERVE!

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Luis Cuevas, Broker/Realtor®

Serve Realty

(214) 783-0535

Luis@ServeRealtyTx.com

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