Let's get to the root of the issue here:

We're interested in the outcome of this investigation. Andrew Cuomo, the New York AG, contends that private lenders engage in unscrupulous arrangements to gain those coveted positions within the financial aid office. If you haven't already figured out, the financial aid office is key in determining your school aid package. The schools typically don't like to manage lots of lenders, it's easier for them "reccomend" only two or three lenders. You can see as a private lender, that having a spot on that list can drive in significant loan volume. And if you're on lots of schools preferred lender lists, you get lots more volume.

Now, we can blame the private lenders all we want. But the fact of the matter is, it's the schools financial aid offices that are committing a travesty. So, back to Suze Ormon's wacky statements: “We always lose when others are competing over our business,” she said. It's not the lenders, they're going about their profit incented business of providing capital to students to attend college. All the advice comes from the financial aid office.

We're anxiously awaiting the results of Cuomo's investigation, but we're putting money on the fact that the financial aid office will the be group with egg on their face.