We're hardly policy experts, but this is a pretty interesting read. We'll stick to peddling gossip and rumors here. But we kinda like these Ivy League educated big-time policy experts over at New America Foundation.
Basically what they're saying here is that it was up to the Department of Education to police the student loan companies. But in the spirit of Bush imposed free-market enterprise, nothing got done. So, naturally, greed took over and look at the fine mess we have today with all these financial aid officers and one particular student loan company.
Like we said before, there's more mess to uncover, but where was the Dept of Education while all this was going on? It's a valid point. If the Dept of Ed is going to develop regulations but not police them, then the regulatory arm is useless. It quickly devolves into a wild-west environment.
Well, there appears to be several new sheriffs in town to clean things up. We've said this before: do a little research on the student loan company you're interested in doing business with. You have a choice, so vote with your dollars.
We're looking for a positive post to put up. Negativity seems to be festering in the student loan industry at present. But we're going to look really hard for a nice warm fuzzy positive topic.
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I am the co-founder of TuitionCoach.com and have blogged on this subject. For those of us who admire and value our colleges, the current loan issue is disappointing. It is clear that in the absence of greater oversight, even some colleges are willing to venture into the twilight of unethical and maybe even illegal behavior. What may come of this is a little sunlight so that full-disclosure and transparency will at last be the norm. In this era of seemingly arbitrary, huge increases in tuition and often less than stellar financial aid awards, the brewing loan scandal tends to cast a long shadow on those issues as well.
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