Saturday, May 05, 2007

How Seedy Can the Student Loan Scandal Get?

Put on your mud boots. The Washington Post is reporting Student Loan Probe Expands to Include Alumni Associations by Amit R. Paley.

That's right, the older generation is using the younger one in a pyramid scheme that serves only to punish the person taking the loan and enrich the sponsor. During the years of unaccountability that the Bush regime cobbled together the message to this nation's rip-off artists is clear, Why simply privatize when you can pillage as well? Read on.
The New York attorney general has broadened his investigation into the student loan industry to discover whether university alumni associations are steering graduates toward a major loan company in exchange for payments from the lender.

The lender, Nelnet, said it has agreements with about 120 alumni associations across the country, including those affiliated with the University of Maryland and Old Dominion University in Virginia. Nelnet said it typically pays the associations in return for data used to mail marketing materials to graduates.

"Unfortunately it appears that student loan scams don't end at graduation," New York Attorney General Andrew M. Cuomo said yesterday in a statement. "Our investigation seeks to put an end to kickback schemes and payoffs that benefit lenders and their partners - be they schools or alumni associations - at the expense of students trying to control their debt."

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