A Corruption Tax
The median debt for each graduating student in this country is $19,300. Adjusted for inflation, the debt levels for graduating students have risen 58 percent over the past decade.
California Democratic Congressman George Miller is the Chairman of the Education and Labor Committee is one of the chief critics of what has been transpiring, in the student loan business.
According to Rep. Miller the cost of college has outstripped the resources of the middle class families, who the hopes and aspirations for their children. Consequently, they're willing to go into debt, but they're not willing to pay for corrupt activities in the very program that they were led to believe by the universities was to their advantage.
Education Secretary Margaret Spellings will testify before the House Education Committee on May 10th. The Education Department has formed a task force to look into the conflicts between lenders and universities. Critics say the department's oversight of the industry has been so weak and the ranks of the Education Department so tied to the industry that a task force is simply too little and too late.
An investigation by New York's Attorney General Andrew Cuomo has resulted in a dozen settlements so far. Ninety percent of students choose their school's preferred lender. Cuomo found cases where student loan companies bought their way onto the list of preferrer lenders, thereby adding to the cost of the loan.
As a result of Attorney General Cuomo’s investigation, it has come to light, that our federal government may have been an enabler of many of these corrupt practices. As Cuomo’s staff press their investigations into the activities of student loan lenders, people on the university campuses and people within the Education Department, it has discovered a triangle of corruption in the number of instances.
The federal government puts forward an extraordinary amount of money to subsidize private lenders in this student loan program. Corrupt practices are putting taxpayer money at risk, as well as creating enormous cost for students and their families.
Families struggling with the cost of college are also being forced to pay a corruption tax. The cost of college has been driven up because of corrupt relationships between lending officers, universities, lending agencies, banks and various elements of the student lending program.
California Democratic Congressman George Miller is the Chairman of the Education and Labor Committee is one of the chief critics of what has been transpiring, in the student loan business.
According to Rep. Miller the cost of college has outstripped the resources of the middle class families, who the hopes and aspirations for their children. Consequently, they're willing to go into debt, but they're not willing to pay for corrupt activities in the very program that they were led to believe by the universities was to their advantage.
Education Secretary Margaret Spellings will testify before the House Education Committee on May 10th. The Education Department has formed a task force to look into the conflicts between lenders and universities. Critics say the department's oversight of the industry has been so weak and the ranks of the Education Department so tied to the industry that a task force is simply too little and too late.
An investigation by New York's Attorney General Andrew Cuomo has resulted in a dozen settlements so far. Ninety percent of students choose their school's preferred lender. Cuomo found cases where student loan companies bought their way onto the list of preferrer lenders, thereby adding to the cost of the loan.
As a result of Attorney General Cuomo’s investigation, it has come to light, that our federal government may have been an enabler of many of these corrupt practices. As Cuomo’s staff press their investigations into the activities of student loan lenders, people on the university campuses and people within the Education Department, it has discovered a triangle of corruption in the number of instances.
The federal government puts forward an extraordinary amount of money to subsidize private lenders in this student loan program. Corrupt practices are putting taxpayer money at risk, as well as creating enormous cost for students and their families.
Families struggling with the cost of college are also being forced to pay a corruption tax. The cost of college has been driven up because of corrupt relationships between lending officers, universities, lending agencies, banks and various elements of the student lending program.
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