Student Loan Scandal

[Malachy]

Over the last few weeks, I keep stumbling across stories about a growing scandal in the student loan and college relationships in the United States. As a student, I find this highly disturbing because many of the colleges being targeted by New York's Attorney General, Andrew Cuomo are receiving large sums of money for putting certain companies on their preferred lenders lists.

What caused me to make this topic is what I read in the times just today while checking on the stories.

Colleges Relying on Lenders to Counsel Students
By JULIE BOSMAN

Some universities use lenders to conduct workshops required by law for many students taking out loans.

this is not technically illegal, the government allows lenders to be a part of required exit protocals required of colleges to give to students.

along those lines is the real scandal I've been following. Cuomo of NY has been investigating not only financial aid officers who were receiving money from companies, but colleges as well. Yesterday the NY Attorney General filed suit against Drexel University, the first suit because many other colleges have opted for paying students back and adopting new guidelines in settlements reached before Cuomo brought them to court.

just as a little idea of what I've been reading lately

here is a NY Times search for "student loans"

As a student, I feel violated by members of the college community as well as by lenders. They have deceived students at the very institutions where they went to learn!

[SyntheticTacos]

Money money money money money... MONAY!

'TIs a shame indeed.

[Korriken]

well you learned something didn't ya? you learned that can't trust anyone, especially those who handle money. the college has done its duty.

now to be serious.

that is messed up, but what can you REALLY do? and exactly how do you settle a thing like that out of court? hand the lawyer money? if so he is just as crooked as they are.

[Malachy]

At 4/21/07 11:06 AM, Korriken wrote: that is messed up, but what can you REALLY do? and exactly how do you settle a thing like that out of court? hand the lawyer money? if so he is just as crooked as they are.

you and I can't do anything. It's the state Attorney General offices which can do anything. So far in some of these out of court deals, schools have adopted new policies on how they decide on preferred lenders and some have even given money back to the students as well as however much they were given by lenders.

Officials found to have taken money are having criminal charges pressed as well as their careers basically being over.

well you see the difference between the crooked lawyer and the crooked loan officer at the college is that the lawyer makes his money legally in this case, whereas a loan officer just took money from a lender and told students to go with them, even if they weren't the right lender for the student.

[Politics]

As it stands, the educational financing system is deeply rooted in problems; student loan scandals are just a grain of sand in the desert. Other issues like preferential treatment for people by race is blatantly flaunted in post-secondary applications for monetary backing. The system is rife with arbitrary and inane stipulations that stifle potential scholars and perpetuate many bound for failure. The system is flawed, and they've violated students financially long before now, so much so that it makes student loan scandals insignificant.

It's outrageous that they allow themselves to be biased and bought off, yes, but it's worse than that underneath, and nobody seems comparatively concerned with the real issues. It sickens me far more that they openly award financial assistance specific to certain races and women, and then have the audacity to call themselves equal-rights proponents.