The Student Loan Scam Is An Interesting Book - 1320 Words

The Student Loan Scam is an interesting book that details all the information that people need to know about, the good and the bad. It is interesting and an easy read, but can be better understood through the use of theories. The theories we find in this book are Power Elite Theory, Karl Marx’s Surplus Populations, Monopoly Capitalism, the Education Industrial Complex, Anomie, and Labeling Theory. Power Elite Theory is one of the more predominate theories in The Student Loan Scam. This is seen mainly through the people at the top in the government as well as those in the head of certain corporations, especially Sallie Mae. Power elite theory says that wealthy individuals or their family members and friends circulate through three power†¦show more content†¦Sallie Mae would bribe other companies, then buy them, and finally pay off the employees so that Sallie Mae employees can take over. Sallie Mae, EdFund, and the USA Group Loan Service spent millions lobbying congres s and donating large amounts of money to elected officials. Sallie Mae bought the USA group out and brought their employees into the business. The old employees of the USA Group were awarded money in stock, salary increase, and contracts stating that the employee would leave within a year of the buyout. Companies such as Sallie Mae were benefiting based on the single-holder rule. This states that a person’s loans after graduating had to be consolidated with the company that originally made the loan. This way the wealth stayed with them and they were better able to add on fees and high interest rates. Sallie Mae gave out lots of money, but due to legislation such as the rule above, Sallie Mae stayed a power elite. Sallie Mae had power over congress, legislation, the Education Committee, and even college financial officers. Some financial aid administrators actually held direct financial stakes in the very same lenders that they were promoting on campus. Power elite theory can be drawn into capitalism. Sallie Mae employs fall under this theory. They cycle through power structures. They start out at the company, then end up in companies they bought, or they have stock in a company they deal with. Some people