Student loans are supposed to be the safest loans you can get. They've got good interest rates and very little risk. But some could be leading students into financial disaster.

One such lender is Sallie Mae. The company loaned Wisconsin students two million dollars last year, but the price of payback is destroying some students-- while executives get filthy rich.

When Cheryl Rohloff tried to pay off her student loans, she was struck by tragedy. Her son was brutally murdered. "That was pretty much where my world stopped," she recalled.

She'd gotten those loans back in 1984, while a student at Portland State University.

"I was a young single mother and I thought the best way I could do for my family was to go back to school, get a degree and provide better for them."

Sallie Mae loaned Rohloff $6500 for school.

She was paying it back, but when her son was killed, she quit her job to find her son's killer.

Sallie Mae still wanted their money: interest and penalties kicked in on her loans.

Three months later, Cheryl found her son's killer. She also found herself in insurmountable debt. "I took out a loan for $6500. I've now paid $20,000 on this loan and still owe $7000. Do you think there's something wrong with this picture?"

Lynne Ostregen has a similar story. 20 years ago, she took out Sallie Mae loans for $43,000. Lynne went through a divorce and suddenly found it tough to make those payments. She told Sallie Mae... which gave her an 18-month break on payments. But there was no break on interest and penalties. That $43,000 skyrocketed to $60,000.

"I was like, 'oh my gosh, what am i going to do with this?' I was floored," Lynne told us.


Ostregren's loans have been sold several times. Each time that means new fees. She recently consolidated her loans and now has a 25 year loan. Ostregren still owes $50,000. $50,000 on her original $43,000 loan. She has no idea how she'll ever be able to retire."

"These people are taking my money, our money I should say, and they're getting rich," Lynn lamented.

Rich is an understatement. Albert Lord is the former CEO of Sallie Mae.
In five years Lord made $225 million dollars.
He's thinking about building a private golf course.
A few years ago he tried buying the Washington Nationals… a major league baseball team that sold for $450 million.

Cheryl Rohloff doesn't like that. "I kind of feel like maybe I'm paying their groundskeepers wages. I am helping support them. I don't know how people can live like that with a conscience."

We tried talking to Sallie Mae.
They never returned our phone calls.

Sallie Mae is a huge player in Wisconsin. The company loaned UW-Madison students $2 million in 2006-2006.
University officials declined our requests to talk about their relationship with sallie mae.
They claim they have no role in collection of Sallie Mae loans.

Lynne wants them to speak up. "I feel so bad for the kids that are in school now getting student loans. I don't think they have any idea what they're in for."

Sallie mae continues to make lots of money on the back of students.
Sallie mae stock has risen 2000% in the last ten years.
The fortunes of some of those they service? ... has plummetted.

"I don't live a lavish lifestyle. I don't have a fancy car, live in a fancy house. I'm just trying to make ends meet and it's very difficult."

"It's never going to go away and when I die they'll probably hit my daughter with it," Cheryl said.

The average student borrower graduates from college with $17,000 in student debt. So it's easy to see how this can become a huge problem in a short period of time.