McEachin on Sallie Mae

Donald McEachin, who is challenging Benny Lambert for the Democratic nomination for Senate in the 9th district, held a press conference this morning regarding Lambert’s connections to Sallie Mae, the company that provides student loans. Lambert serves on the board of directors for Sallie Mae and has used his position as justification for contributing to a conservative Republican who voted against Democratic efforts to reduce student loan interest rates. The entire text of the McEachin’s statement:

Affordable college education should be the right of every Virginian – and is the dream of every American family.

Unfortunately, too often corporate greed and corporate malfeasance on the part of for-profit loan corporations like Sallie Mae that lend money to our students have gotten in the way of this aspiration.

As you may recall, my opponent, Benjamin Lambert acknowledged contributing $1000 to conservative Republican Congressman Buck McKeon. It is disturbing,
and perhaps very telling, that this is the same Congressman McKeon who was the leader in the fight OPPOSING successful Democratic efforts that would
cut student loan rates in half. (Washington Post, 1/17/07).

Republican Congressman McKeon, Mr. Lambert and his fellow members on Sallie Mae’s Board of Directors may believe higher rates on student loans are acceptable, but students and their families know otherwise.

Just as distressing as Sallie Mae’s determination to keep their profits high by keeping student loan rates high, are the unethical business practices in which Sallie Mae has engaged while my opponent has been part of their leadership, serving as a member of their Board.

In New York, Attorney General Cuomo has forced Sallie Mae to enter into an agreement that has made the company stop practicing egregious business practices including bribery, kickbacks, and collusion. (Washington Post, 4/12/07)

Here in Virginia, Sallie Mae has been accused of participating in illegitimate business practices involving unaccredited trade schools and illegal debt collection activities. (http://asfb.org/sordid.php)

As a member of the General Assembly, my responsibility is to the people I represent – not to a for-profit Corporation whose business practices are questionable and whose relentless push for profits come from the sweat of our hard-working families and students.If elected to the State Senate, I will introduce legislation that will help protect our students from unethical and predatory lending practices.

• Prohibit Sallie Mae and other for profit loan corporations from forming exclusive relationships with any school in the Commonwealth.
• Insist that students are explicitly notified in every communication that loan corporations are for profit and that they should examine every loan offer carefully
• Prohibit Sallie Mae and other for profit loan corporations from offering gifts or other enticements directly to schools
• Force full disclosure so that it will be apparent when seemingly alternative loan offers are just from subsidiaries of Sallie Mae
• Authorize the creation of a statewide trust for direct lending to students by universities; creating a non-profit alternative to the for profit loan corporations, like Sallie Mae.

Additionally, I will work with Senator Webb and our entire Congressional delegation on the federal level to put some real reform in the student loan scam, ensuring full disclosure and working to reduce interest rates and find more resources for our deserving students.

Senator you told the Richmond Free Press: “When you serve on a cooperate board that pays as much as Sallie Mae does, you sometimes have to make contributions to people regardless of party,”

1.8 million in Sallie Mae stock sales and 4.4 million in stock you still hold in Sallie Mae – is that the price that caused you to turn your back on the Democratic Party-the same party that has supported you throughout your career? (SEC Disclosure form DEF 14A: SLM Corp, filed 4/9/07 and SEC disclosure Form 4, sales on 1/24/06, 9/13/06, and 12/20/06)

I ask you, Senator please explain how the profits that you and Sallie Mae have made have not come at the expense of our college students.

Get ’em, Donald 😉

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