The Selling of Student Loans

Autor/in	Field, Kelly
Titel	The Selling of Student Loans
Quelle	In: Chronicle of Higher Education, 53 (2007) 39, (1 Seiten) PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0009-5982
Schlagwörter	Incentives; Student Loan Programs; Conflict of Interest; Marketing; Federal Legislation; Colleges + Suchen Sie Ihr Suchwort? Anreiz; Interessenkonflikt; Bundesrecht; College; Hochschule; Fachhochschule
Abstract	Twenty years ago, a U.S. Senate aide walked into a bank in Maine and saw a sign that read "Take out a student loan today, get a toaster." The aide, concerned that students would be tempted to take out loans they did not need, drafted legislation barring lenders from offering "inducements" to borrow. That language was added to the Higher Education Act in 1986, and for the next two decades, the "toaster provision" remained a backwater of student-aid policy. That all changed in April, when New York State's attorney general, Andrew M. Cuomo, announced the first settlements stemming from his investigation into conflicts of interests in the student-loan industry. Suddenly, inducements are front-page news. Colleges and their alumni associations stand accused of taking kickbacks, financial-aid officers have been fired for accepting consulting fees and stock options from lenders, and the Education Department is being blamed for its lax oversight of the industry. This article discusses how 20 years of lenders' marketing strategies, from free toasters to kickbacks, gave birth to a scandal. (ERIC).
Anmerkungen	Chronicle of Higher Education. 1255 23rd Street NW Suite 700, Washington, DC 20037. Tel: 800-728-2803; e-mail: circulation@chronicle.com; Web site: http://chronicle.com/
Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2017/4/10