I'm sorry; I fail to see how any of these provisions will help students in any meaningful way. Banned under this code are:
Providing inducements to students, such as gift cards, iPods, and Global Positioning System (GPS) devices to entice them to take out loans.- Ok, so they no longer get gifts to take out loans. But they still need the loans.
Offering payments or other inducements to students to get them to convince their friends to take out loans from the lenders.- Ok, but they and their friends still need the loans.
Making false and misleading representations as to the advantages of taking out private loans over lower-cost federal loans.- This one has some merit. So now they will take out federal loans first, but they will still need the private loans to make up their tuition gap.
Advertising low rates or favorable terms that are available only to a tiny fraction of borrowers without disclosing that fact.Nobody ever found out what rate they were going to get, until they applied. And despite this code, that is still the case. What was gained, here? They still need the loans.
Failing to guarantee that advertised borrower benefits, such as interest rate discounts for on-time payments, will be honored even if loans are sold to other companies.So, now they won't offer these benefits- Problem solved?
Also, along with many other consumers, I had heard of the mailers pretending to be issued by government agencies that were sent out by the loan companies.
"Notice of Congressional Action: Failure to respond could result in limitations to your rights...and may expose you to federal rate increases." Um, looks like junk mail to me. I (and most people) get this sort of stuff all the time. If students and their parents weren't filing this type of mail in the appropriate spot, (a wastepaper basket) they need to go back to high school and learn some critical reading skills.
The only thing that this code of conduct will do is add to the current economic climate which is driving lenders out of a less and less profitable business. Who will make up the gap?
Code of conduct
I'm sorry; I fail to see how any of these provisions will help students in any meaningful way. Banned under this code are:
Also, along with many other consumers, I had heard of the mailers pretending to be issued by government agencies that were sent out by the loan companies.
"Notice of Congressional Action: Failure to respond could result in limitations to your rights...and may expose you to federal rate increases." Um, looks like junk mail to me. I (and most people) get this sort of stuff all the time. If students and their parents weren't filing this type of mail in the appropriate spot, (a wastepaper basket) they need to go back to high school and learn some critical reading skills.
The only thing that this code of conduct will do is add to the current economic climate which is driving lenders out of a less and less profitable business. Who will make up the gap?