New Congressional Report Reveals Even More

Questionable Ties Between Schools and Lenders

Angela Januzzi

September 5, 2007 

Funding for golf tournaments, intramural sports support, and student activities fairs: All of the above are requests listed in emails from college officials to lending companies, used as incentives to sway students towards taking loans with those companies. 

Yesterday a Congressional report was released divulging these details, and more, about questionable interactions between schools and loan companies. Though the loan scandals between lending companies and schools have been ongoing since March, yesterday’s report confirmed that evidence of lender incentives abound within even the most well-intentioned schools.  

Through internal lending documents and emails, it was revealed that most schools that were asking for donations from lenders were intending the money for fundraising events. Still, as Massachusetts Senator Ted Kennedy’s report points out, the intention behind receiving the incentives does not vindicate such deliberate toying with student trust.

All institutions of higher learning must learn that student satisfaction and retention will now, in lieu of this issue, be partly contingent on the quality of financial aid advice students feel they are receiving. 

Source: Glater, Jonathan. “New Ties Found To Link Lenders and Colleges.” Posted: September 5, 2007.