Already on ArticleSlash?

Forgot your password? Sign Up

Student Loans Going Under Serious Review

Jimmy Wilson
 


Visitors: 159

Student loans and the current practices from which they are presented, at the college level advisories, is finally going under federal reviews. For far too long, colleges and universities have been compensated by major lending institutions at the expense of the college students in attendance at these same universities, when suggesting or steering unsuspecting students toward kick-back lenders.

Acquiring a higher level of learning comes with a price and rightfully so, but when the higher education comes with a kick-back to the colleges and universities aside from the tuition and fees associated with the education package, then there is definitely a cause for serious concern.

To explain this, let's say you are enrolled at college and you're expected to pay your tuition and expected fees, then you are obviously short on funds and need financial assistance to pay the tuition. You seek financial aid and ask the college financial counselor what options you have. When they make suggestions as to whom you should or could, obtain student loans from, they are often ‘steering’ you toward a lending institution that is providing payments, special paid trips, or vacations, to the college or to certain college staff members for that service for recommending certain lenders. This is or soon will be an illegal act.

When an institution is charging a fee for services rendered, an education in this example, and they are a party to steering you toward a third party for financial assistance, with kick-backs for doing this, they are double-dipping for a single service or are receiving payments twice for a single service.

Student loans have been in existence for as long as there have been colleges and universities, and the need for financial assistance will continue. The new federal review and investigations should bring an end to the double collecting or steering the colleges from receiving payments or payments in kind from the student loan lenders.

Car dealers practice this method of double dipping as well. You buy a car from them, and you need financing, the lenders they suggest or offer in the deal, can and do receive a similar kick-back from the lending institutions by charging you a higher interest rate and the lender gives a percentage of the loan back to the dealership. Student loans should not be in the same underhanded business as buying a car. Obtaining an education is not the same as buying a car or is it?

I highly recommend you contact your federal, state and local officials to let them know that this practice must stop. Student loan lenders are regulated, as to what the maximum allowed interest they can charge, but they are not regulated at present as to who can receive the incentives for steering an unsuspecting student toward the lender. Even honest and competing student loan lenders are struggling under these practices. One such lower charging lender, MyRichUncle.com is being squeezed by this practice. When you are driving out honest student loan lenders by underhanded dealings, this is wrong and should be stopped.

http://wealthsmith.com/studentloans.htm

Jim is an online writer and entrepreneur, keeping his readers abreat of current events and hot topics on and off the web. Today he is discussing student loans and their lending practices.

http://wealthsmith.com/studentloans.htm

(567)

Article Source:


 
Rate this Article: 
 
Bad Credit Private Student Loans - Satisfying the Basic Needs Of the Student
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Consolidating Student Loans Ease Your Student Debt Burden by Consolidating ..

by: Zul Wafiy (July 05, 2008) 
(Finance/Student Loans)

Astrive Student Loans - The New Generation of Student Loans

by: Adam Hefner (January 24, 2008) 
(Reference and Education/Financial Aid)

Alternative Student Loans - Private Student Loans

by: Evelyn A. Saunders (September 06, 2008) 
(Finance/Student Loans)

Student Loan Consolidation Info - How Can I Find Answers To Questions About ..

by: Ian Wilkie (February 03, 2008) 
(Reference and Education/Financial Aid)

Consolidating Student Loans-Things To Consider When Choosing Student Loan ..

by: Christopher Whitcomb (April 08, 2007) 
(Finance)

Student Loan Consolidation Info - How to Get Student Loans For Continuing ..

by: Ian Wilkie (June 26, 2008) 
(Finance/Loans)

Student Loan Consolidation Information - How Credit History Affects Student ..

by: Ian Wilkie (August 29, 2007) 
(Finance/Debt Consolidation)

Student Credit Cards and Student Loans Two Different Options to Deal With ..

by: Kate Ross (June 26, 2008) 
(Finance/Credit)

Student Loan Consolidation Info - Consolidate Student Loans To Save On Interest .

by: Ian Wilkie (March 16, 2008) 
(Finance/Debt Consolidation)

Bad Credit Private Student Loans - Satisfying the Basic Needs Of the Student

by: Steve C Clark (January 30, 2008) 
(Reference and Education/Financial Aid)