Tuesday, February 9, 2010


I read a wonderful article by Richard Eskow, a consultant for the Huffington Post detailing the gross abuses in student loans, the payoffs, lies, and distortions that mirror the almost dead issue of health reform.

The government guarantees loans that are administere by banks so the banks make money off our young people and their families and take zero risk doing so. This is enough to make my breakfast regurgitate. In fact this comes to some 8 billion per year that could go a long way in helping advance education and the students needing this.

There is so much profit in this for banks that money is being paid to steer students to them so they can profit without risk. Some Departments of Education hold shares in the lending organizations which easily result in a conflict of interest. Perks like trips are offered by financial aid firms and colleges are paid handsomely to place an organization on their list of preferred lenders. Counseling that is offered is often simply a sales pitch and scare tactics are employed to distort the truth. The biggest lobbying organization is Sallie Mae who is reported to be buying Democrat and Republican Senators evenly. Banks are calling reform, "Death Panlel II".

If these abuses and waste of student and their parent's money doesn't make you sick and angry, I suggest that you died and forgot to tell anyone.

Right now, a reform bill has passed the House of Representatives and the Senate is doing the same crap as they did during health care reform. Everyone should contact their Senators and demand that they support government run student loans without bank involvement.

No comments:

Post a Comment