As it became more and more apparent that the Democrats would be making substantial gains this election cycle, the Sallie Mae lobbying machine grew nervous.
At the eleventh hour, the Sallie Mae PAC flooded previously unsupported democrats with extremely large (the maximum) donations.
It is quite interesting how obviously shameless a behemoth cancer on our federal government like Sallie Mae will act when threatened. At all costs, the new Congress can't let itself become Sallie's bitch.
Sallie Mae has enjoyed this Republican Congress. Since 1994, Student Loans have become simultaneously the most profitable-and most oppressive- type of debt in our nations History.
When the republicans rolled into power, bankruptcy protection was stripped from student loans, huge penalties and fees were legislated into existence for delinquent debt, and mafia-like collection powers were given to the lenders. Congress actually made it MORE profitable for lenders to default borrowers, as opposed to keeping in good stead with their loans.
This has ruined the lives and livelihoods of millions of decent citizens. Not nickel and dime stuff. Financial ruin.
This is largely due, of course, to the lobbying muscle of Sallie Mae- a government chartered entity until 1995. Until this month, most of Sallie Mae's massive lobbying power filled the coffers of republican candidates. At the eleventh hour of this most recent election, however, Sallie apparently found Jesus.
In a desperate attempt to cling to their legislated profits, the Sallie Mae PAC threw tens (if not hundreds) of thousands of dollars to influential Democrats in Congress. Anyone who follows the Sallie Mae lobbying machine around like me is quick to notice the following last minute democratic donations:
Steny Hoyer $10,000 ($7,000 given after June 29th)
Tim Carper $9,000 ($8,000 given after Sept 1)
Evan Bayh $10,000 (Half given August 31st)
Robert Andrews $10,000 ($4,000 given Sept 19th)
Paul Kanjorski $8,000 ($5,000 given July 17th)
Lincoln Davis $10,000 (all given since May, 1/2 in Sept)
Bart Gordon $10,000 (Half given Sept 19th)
John Barrow $1,000 Oct. He was a good guy, too.
These are just a sampling, and don't include direct contributions from Sallie Mae Execs, which is another post in and of itself!
To the new Congress-don't do it. Please don't let Sallie Mae do to you what they did to the old guard.