Student loan industry

The student loan industry provides loans—termed "financial aid"—"to students to assist in payment of the costs of professional education. These loans usually carry a lower interest rate than other loans and are usually issued by the government. Often they are supplemented by student grants which do not have to be repaid." [1]

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National Student Loan Data System

On April 15, 2007, Sen. Edward M. Kennedy (D-Mass.) urged the Bush administration to block student loan companies from accessing a national database that includes confidential information on tens of millions of college students. The request followed a Washington Post report which exposed inappropriate searches of the database possibly in violation of federal rules. The database, called the National Student Loan Data System, contains Social Security numbers, e-mail addresses, phone numbers, birth dates and other financial information. [2]

Related SourceWatch Resources

• data mining
• Direct Student Loan Program
• John Boehner (campaign contributions)
• lobbying by universities and colleges
• Margaret Spellings
• Mike Ferguson
• Sallie Mae
• Student Loan Marketing Association
• U.S. Department of Education

External links

General Info

• student loan and student loans in the United States in the Wikipedia.
• Higher Ed Watch Blog, New America Foundation.

Articles & Commentary

• Robert Shireman, "Corporate Welfare in Disguise. The student loan industry is raking in the profits," National Cross Talk, Winter 2005.

Investigations & Scandals

• Editorial: "Student Loan Scandal," Washington Post, September 10, 2004.
• Richard Esposito, "National Probe: Colleges Take 'Kickbacks' From Student Loan Lenders," The Blotter Blog/ABC News, March 15, 2007.
• "‘Deceptive Practices’ in Loan Industry," Inside Higher Ed, March 16, 2007.
• Libby Lewis, "Tracking the Money in the Student-Loan Industry," NPR, April 7, 2007.
• "Student loan executives placed on leave amid probe," Associated Press (CNN), April 9, 2007.
• Stephen Burd, Opinion: "The student-loan scam. Under a Republican Congress, for-profit lenders pursued their own interests -- often with the help of colleges," Los Angeles Times, April 10, 2007.
• "Documents: Investigation Into the Student Loan Industry," U.S. News & World Report, April 11, 2007.
• Paul Richards, "Student loan industry kickbacks come to light," Daily Pennsylvanian/U.Penn. (The Phoenix), April 12, 2007.
• John Hechinger and Anne Marie Chaker, "Did Revolving Door Lead To Student Loan Mess? Critics Blame Lax Oversight Resulting From Close Ties Of Industry, Government," Wall Street Journal Online, April 13, 2007.
• Amit R. Paley, "Kennedy Wants Lenders Blocked From Data," Washington Post, April 15, 2007.
• "Student Loan Provider Sallie Mae Sold. Two Private Equity Companies, Two Major Banks, Pay $60 A Share," Associated Press/CBS News, April 16, 2007.
• Danny Schechter, "A Student Crisis," Common Dreams, April 17, 2007.
• "U.S. Suspends Lender Access to Borrower Database," Inside Higher Ed, April 18, 2007.
• Rosita Johnson, "Banks’ profit drive spurs student loan scandal," People's Weekly World, April 19, 2007.
• Amit R. Paley, "Federal Overseer Of Student Loans Invested in Lenders. She Owned Stock in 5 Large Firms," Washington Post, April 21, 2007. re Sara Martinez Tucker
• "Updates on the Loan Scandal," Inside Higher Ed, April 23, 2007.
• Libby Lewis, "Student Loan Abuses Have Roots in 1965 Law," NPR's All Things Considered, April 24, 2007.
• "Statement by Secretary Spellings on Congressional Hearing on Student Loan Industry," U.S. Department of Education, April 25, 2007.
• Amit R. Paley, "Federal Oversight of Student Loan Industry Is Lax, Cuomo Testifies," Washington Post, April 26, 2007.
• "Inquiry Into Student Loan Industry Widens," New York Times, April 27, 2007.
• Amit R. Paley, "Warnings On Student Lenders Unheeded. Bush Aides Derailed New Rules in 2001," Washington Post, May 1, 2007.
• "Student loan industry warned of conflicts," UPI, May 1, 2007.
• "Democrat demands White House student loan records," Reuters (CNN), May 1, 2007.
• "Democrats press student loan cleanup drive," Reuters (CNN), May 2, 2007.
• "Student loan scandal widens to alumni groups. Cuomo: 'It appears that student loan scams don’t end at graduation'," MSNBC, May 3, 2007.
• Eric Rosales, "SJSU Part of Student Loan Investigations. One Of 15 Universities In Nationwide Investigation," abc7news.com (Calif.), May 3, 2007.
• Amit R. Paley, "Loan Firms Set to Regain Access to U.S. Student Data," Washington Post, May 3, 2007.
• "Statement From Nelnet Regarding a Subpoena Issued to the Company by the New York Attorney General Today," PRNewswire, May 3, 2007.
• "New Targets in Loan Inquiry," Inside Higher Ed, May 4, 2007.
• Marie Coco, Opinion: "Student loan shenanigans," Washington Post Writers Group (Indianapolis Star), May 4, 2007.
• Amit R. Paley, "Student Loan Probe Expands to Include Alumni Associations. U-Md., Bowie State Groups Affected," Washington Post, May 4, 2007.
• Paul Pringle, "N.Y. expands student loan investigation. At issue is whether borrowers are improperly steered to a lender that pays fees to alumni groups at schools including UC Riverside," Los Angeles Times, May 4, 2007.
• Jonathan D. Glater, "Loan Inquiry Turns to Deals With Alumni Associations," New York Times, May 4, 2007.
• Michael Gormley, "Student loan probe targets 3 Illinois alumni groups. Payments to U. of I., ISU, NIU bodies studied," Chicago Sun-Times, May 4, 2007.