What are the benefits of SAL to students compared to large corporate for profit lenders like Sallie Mae?
School as lender loans are the best deals on the market for students because by law schools must offer lower interest rates and fees compared to direct or private loans. Generally, schools pay origination fees up front for students. Proceeds from private lenders don’t go back to students to offset tuition or fund need based grants. Banks and other private school lenders must funnel their profits back into their profits and executive bonuses and have little incentive to reduce student loan costs. • Where do private lenders profits go? Large private lenders like Sallie Mae put all its profits made from student loans back into the profits and executive bonuses not direct benefits to needy students. For example, Salle Mae Chairman Albert Lord and CEO Tim Fitzpatrick have collectively taken about $367 million in compensation from the company since 1999 (not including stock appreciation). • Do schools employ tools to limit student borrowing? Unlike banks and other large corporate lenders, mo
