Student loan programs being investigated
April 6th, 2007 Stewart Posted in Uncategorized |
Federal Official in Student Loans Held Loan Stock - New York Times
Today’s modern student loan program is a corrupt exercise in corporate profiteering built on the backs of students who find themselves left with no other options. Kudos to Andrew Cuomo for investigating student lenders and universities for their ethically-confused practices. Let’s hope to see this investigation extend to the federal level very soon.
April 6th, 2007 at 2:26 pm
This is the story I woke up to… and couldn’t help but notice former Chancellor Ryan’s alleged involvement. Glad I didn’t pick this bank, but I bet they could find similar stories with my own. Argh.
And you’re right to take it a step further. This admin. has been brutal with legislation making it more egregious to default on student loans. At the rate I am going I will never get out of this mess… and I know others with worse problems. Was it worth it? I’ll get back to you on that.
April 8th, 2007 at 3:43 pm
Sunday NYT posted an editorial this morning:
http://www.nytimes.com/2007/04/08/opinion/08sun3.html?ex=1333684800&en=939a29fda3fe5199&ei=5124&partner=permalink&exprod=permalink
I don’t think anyone takes this problem seriously enough. Why should corporate lenders be able to make so much money off the backs of working-class students and the fed?
I recommend a federal law capping all student loan returns at 20%. These lenders are seeing ROI of 2 or 3 times their initial loans — These are essentially second mortgages for kids who haven’t even entered the workforce yet.
No one should have to pay such an insane premium to attend college.