Scandal

By now anyone with access to a television, radio, newspaper, or internet connection knows that New York Governor Eliot Spitzer has become ensnared in a federal investigation into an interestate prostitution ring. It's a major disappointment for both his family and the people of the state of New York. The internets are abuzz with speculation about the salacious details and whether or not Spitzer will step down as governor. As a family blog, we'll eschew the tawdry aspects of this story to ask a substantive question: What does this mean for early education in New York State?

House Approves Bill to Reauthorize Higher Education Act

[slideshow]In an overwhelming 354 to 58 vote, the House approved legislation on Thursday that would reauthorize the Higher Education Act for the next five years. The College Opportunity and Affordability Act (H.R. 4137) would impose new restrictions on the relationships between student loan providers and colleges, increase transparency in the private student loan market, simplify the process of applying for financial aid, keep textbook costs down, increase aid for veterans and military families, and tackle rising tuition costs. The legislation would also significantly weaken a provision in the law that protects students from unscrupulous for-profit trade schools.

Economic Woes Hit Sallie Mae, Nelnet

Tightening credit markets and the slowing economy appear to be spreading into the student loan industry, as two major lenders announced recently that they will be cutting jobs and shying away from riskier loans. Last Friday, Virginia-based Sallie Mae said it would be trimming 350 jobs across the country, roughly 3 percent of its workforce. Nelnet, located in Nebraska, announced it would cut 300 jobs, about 10 percent of its workforce — its second round of major layoffs since September. Both companies also announced changes to the loan services they would be offering. Sallie Mae said it would be more selective about offering private loans to students with low credit scores and those enrolled at schools with low graduation rates. Nelnet, meanwhile, announced it would stop offering loan consolidation services and would be more selective with the loans it offered.

In approximately three weeks, the U.S. House of Representatives is expected to take up legislation that would impose new restrictions on the relationships between colleges and student loan companies. While the effort is to be applauded, the legislation could go much further in eliminating the types of "pay for play" conflicts of interest…

Note: This post pre-dates Higher Ed Watch's shift to a new publishing system. For the complete original post, including any comments, please click here.

They may share little more in common than the name Lord, but Isiah Lord Thomas (his given name), the much-maligned general manager and coach of the New York Knicks, and Al Lord, the oft-criticized Chief Executive Officer and former Chairman of Sallie Mae, are sitting on seats hot enough to…

Note: This post pre-dates Higher Ed Watch's shift to a new publishing system. For the complete original post, including any comments, please click here.

Santa has some tough decisions to make this Christmas. We've decided to help him out with our own list of who's been naughty and who's been nice this year in higher education.

Let us know who, if anyone, you think should be added to the list…

Note: This post pre-dates Higher Ed Watch's shift to a new publishing system. For the complete original post, including any comments, please click here.

Yesterday, we wrote that officials in Iowa are investigating whether aggressive marketing practices by the largest student loan provider in the state, and the cozy relationships it has developed with area colleges, have pushed students to take on unnecessarily high levels of expensive private student-loan debt. Specifically, Iowa's…

Note: This post pre-dates Higher Ed Watch's shift to a new publishing system. For the complete original post, including any comments, please click here.

From the start of Higher Ed Watch in September 2006, we have focused a healthy amount of attention on the non-profit company EduCap, which until recently marketed private student loans under the brand name Loan to Learn. The company, which is owned by the Washington, DC socialite Catherine B. Reynolds, shut down…

Note: This post pre-dates Higher Ed Watch's shift to a new publishing system. For the complete original post, including any comments, please click here.

Top officials at the U.S. Department of Education continue to repeat the company line that they were ahead of the curve in coming to grips with and confronting the burgeoning "pay for play" student loan scandal -- despite all evidence to the contrary.

Note: This post pre-dates Higher Ed Watch's shift to a new publishing system. For the complete original post, including any comments, please click here.

In honor of the conclusion of the harvest season-and in order to give ourselves plenty of time for turkey, mashed potatoes, and pumpkin pie-Higher Ed Watch is taking the week off to celebrate Thanksgiving. But we'd be remiss not to also note the Pennsylvania Higher Education Assistance Authority's (PHEAA) turkey surprise.

Note: This post pre-dates Higher Ed Watch's shift to a new publishing system. For the complete original post, including any comments, please click here.