One of the main economic challenges facing American families across the country is having the financial capacity to pay for their children’s college. But on many occasions this is very complicated due to the high costs that this implies, so that families end up in debt for many years.
In this situation, according to The Hill, a former executive director of the student loan firm Sallie Mae exposed that the cost of tuition in American universities is “criminal” , but acknowledges that he played a role in their rise, according to a forthcoming book.
In an adaptation of “The Debt Trap” by Wall Street Journal reporter Josh Mitchell, due out August 3, Al Lord, who joined Sallie Mae in 1981, said he first felt the impact of tuition costs when started paying for one of his grandchildren .
Lord said he paid $ 175 dollars per semester during the decade of 1960 when he attended Pennsylvania State University, a big difference from the matr The tuition he paid for his grandson, who enrolled at the University of Miami several years ago. The university currently charges $ 75, 230 dollars for a college student on campus, which includes tuition, fees, room and board, transportation and other expenses.
According to reports found, he also paid the Tuition of several other grandchildren, about $ 200, 000 dollars per person. “I am very happy to have saved for my grandchildren. If the average income is $ 40, 000 dollars or $ 50, 000 dollars or $ 60, 000 dollars, I just don’t know how they do it, ”Lord said in reference to average family earnings.
He reportedly acknowledges in the book that understands that he played a role in encouraging colleges to increase their fees. According to “The Debt Trap,” after Lord began his first career as CEO of Sallie Mae at 1997, he initiated a series of incentives to allow students to take out more loans. so colleges can charge more.
Sallie Mae began bundling student loan packages that were later sold to investors. Additionally, Lord persuaded schools to have students borrow money from banks, where Sallie Mae bought her student loans, or from the student lender himself, according to the book.
Sallie Mae’s Promises That the additional money from private investors would be available for students to take advantage of caused their shares to skyrocket later.
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