For-profit colleges are under fire because students often graduate with large amounts of debt and few job opportunities, and because for-profit colleges misrepresent the quality of their programs. Recent Woodstock Institute research shows that for-profit college students often struggle with higher amounts of loans compared to their non-profit and public student counterparts with similar demographic and financial characteristics.
This letter comments on Sallie Mae Bank’s performance under the Community Reinvestment Act. The letter urges the FDIC to hold Sallie Mae Bank accountable for poor lending and banking practices. The Community Reinvestment Act requires banks to work with low- to moderate-income communities to ensure their financial needs are being met. However, Sallie Mae Bank’s affiliation with “non-traditional” private student loans and harmful campus prepaid debit cards are leaving student consumers at risk.