Cuomo: School Loan Corruption Widespread

Cuomo: School Loan Corruption Widespread

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Cozy arrangements between colleges and the companies that lend their students billions of dollars are far more widespread than anticipated, New York Attorney General Andrew Cuomo told The Associated Press Tuesday, even as another college financial aid officer was suspended amid a probe into the $85 billion industry.

Investigators found that many colleges have established "preferred lender" lists and entered into revenue sharing and other financial arrangements with those lenders.

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I am very disappointed. I currently have loans in the six figures. Many of them are from preferred lenders. This needs to be stopped, and loans made above the market rates should be refunded.

Don't get me wrong, I am all for student loans. Without them, I wouldn't be where I am, and I wouldn't have gotten the quality education I received. I have no problem with the loan industry, because in the end it has helped the responsible among us to get ahead. So I have no problems with loans and the way education is now. What I do have the problem with is this alleged fraud and collusion.

What are people's experiences with this? Is anyone having trouble with loans above the market rates?

biz.yahoo.com
(visit the link for the full news article)

I owe over $90k in student loans. The jobs I would have been interested in required a degree when I started with my major. Now they just require high school diplomas and I am "overqualified" or they require a masters with experience. I cannot afford graduate school and no one is willing to give me a job. The government has my social security number flagged because I've received assistance and told me it would be a conflict of interests for them to hire me. Entry level jobs say I am "overqualified" so I haven't even been able to get a job flipping burgers. So all I did by going to college was to educate myself out of the job markets and get myself in deep debt in doing so.

It doesn't surprise me in the least that there is fraud involved in the student loan program. I was not warned of the harm going to college would do to my employability. The colleges and student loan programs just wanted to sell as many tuitions and loans as possible.