Did student loan executives attend school for scoundrels?

Three top executives of the CIT Group’s student loan unit, Student Loan Xpress, have been suspended due to conflicts of interest involving stock ownership by financial aid administrators at three universities, the New York Times reported. An investigation has begun to look at the relationship between loan companies, academic institutions and government officials.
According to the College Board, students took out $85 billion in loans last year. It looks as though college students are getting a lesson in how to buy friends and influence people.
Posted by Patrice Hein

3 Comments

  1. Vaughn Tolle
    Posted April 11, 2007 at 11:31 am | Permalink

    Another article on the student loan matter, indicating the problem identified is of wider scope than that identified in the NY Times piece linked above; it seems there are at least 6 institutions involved, maybe more.

    http://www.cnn.com/2007/EDUCATION/04/11/student.loan.probe.ap/index.html

  2. mrbill
    Posted April 11, 2007 at 12:07 pm | Permalink

    Well a WE editor recently said that the WE needs to step up more and be on the front line of this type of investigation…

    Are there people in the college towns now investigating this here in KS….?

  3. Vaughn Tolle
    Posted April 12, 2007 at 1:06 pm | Permalink

    Well, SallieMae settles with Cuomo; this certainly broadens the spectrum of potential “bad actors” a bit.

    http://www.cnn.com/2007/EDUCATION/04/11/student.loan.probe.ap/index.html