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Thread: Columbia University Loan Kickback Scandal

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    Default Columbia University Loan Kickback Scandal

    [snip]
    Financial aid officers are offered gifts and trips, and universities are offered hundreds of thousands of dollars in payments, if they place a company on their list of preferred lenders that most students use when looking for loans. Universities have also been offered large payments to switch from the government’s student loan program to private lenders whose huge profits are based in part on government subsidies.These cases show what lenders will do to win a slice of the business — last year students took out $85 billion in loans — and the all-too-frequent willingness of universities to go along.[snip]
    http://www.nytimes.com/2007/04/08/opinion/08sun3.html

    With the recent scandal at Columbia University, incoming student need to be aware of the College Lending Market. By knowing your rights and alternatives, you can save.

    [snip]The college loan process confuses most parents who have made the decision to send their children to more expensive schools than they can afford. Based on the rate of tuition increases, more and more parents are now falling into this category. The most recent college loan scandal at Columbia University brings to light strong conflicts of interest between the lending institutions and colleges.
    The Financial Aid Package

    Most parents assume their college financial aid package includes a combination of the best loans and grants available to the institution. Columbia University’s situation highlights a few issues with this process. The most obvious conflict comes at the college/bank level. With 13,000 students or more applying to most large schools every year, becoming the preferred lender to an institution can mean big bucks for banks. Most institutions recognize this and have a system in place to prevent impropriety. Despite these systems, many officials are still influenced by bank representatives. This influence might mean higher rates and a less competitive loan package at some institutions. Considering the amount of debt that will be financed over the course of a four year education, higher rates could mean paying thousands of additional dollars in student and parent loans.

    Read more at Suite101: Know the College Loan Process: Information to Get You the Best Rate and the Lowest Student Loan | Suite101.com http://www.suite101.com/content/know...#ixzz1V2NNm3pg
    [snip]

    Read more at Suite101: Know the College Loan Process: Information to Get You the Best Rate and the Lowest Student Loan | Suite101.com http://www.suite101.com/content/know...#ixzz1V2N8625S

    According to this article in the NY Times big Universities nationwide have been given BIG incentives to keep quiet and steer students to the most predatory, exploitative loans they can. So much for looking out for the kids!
    Last edited by Optimist; 08-14-2011 at 01:31 PM.
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  2. #2
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    Default Re: Columbia University Loan Kickback Scandal

    Not surprised. College is a big racket.

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    Default Re: Columbia University Loan Kickback Scandal

    Quote Originally Posted by kellydancer View Post
    not surprised. College is a big racket.
    + 1

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    Banned SweetNaughty's Avatar
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    Default Re: Columbia University Loan Kickback Scandal

    Optimist, was that animated avatar in your signature sponsored by the Apple iPod?

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