Student Loan Scandals

Accountability for All...Except the Department of Education

The Department of Education loves to talk the talk about accountability. But when it comes to walking the walk, it's failing-and pretty spectacularly.

Case #1

Front and center is the Department's handling of a student loan subsidy payment scandal. In an interview with the Washington Post published this weekend,…

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Roundup: Week of October 15 - October 19

MOHELA Audit Uncovers Untamed Spending

Lavish Christmas gifts, expensive board retreats, and inflated severance packages were just a few instances of profligate spending uncovered during an audit of Missouri's student loan agency. According to the audit, the…

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Selling Out Students to Sallie Mae

Yesterday, we praised colleges that have resisted lenders' efforts to use open government laws to get personal data about their students for marketing purposes. Unfortunately, not all higher education institutions are as vigilant in protecting the privacy of their students' information. Case in point: the University…

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Roundup: Week of October 8 - October 12

Hillary Clinton Includes Two New America Policy Proposals in Her Education Plan

Two New America policy proposals: required multi-year tuition levels and greater use of endowments to

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NEWS SCOOP: Sallie Mae Demands SUNY Colleges Turn Over Students' Personal Data

Lenders that market private loans directly to students are increasingly using state open government laws to demand public colleges turn over personal data on their students.

Late last month, student loan giant Sallie Mae filed a

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Still Steering Students

At a time when cozy relations between banks and college financial aid administrators have come under intense scrutiny, we are sorry to report that some colleges that participate in the Federal Family Education Loan (FFEL) program continue to make it extremely difficult for their students to take out…

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Quid Pro Quo

A recent Senate report on improper marketing practices by student loan providers participating in the Federal Family Education Loan (FFEL) program landed with a thud in Washington last week. Sen. Michael B. Enzi (R-WY) was not alone when he dismissed the document, saying it "simply plows…

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Roundup: Week of September 3 - September 7

Bush to Sign Reconciliation Bill

As Higher Ed Watch predicted, President Bush has dropped his threat to veto legislation Congressional Democrats finalized this week that would slash lender subsidies, cut the interest rate on federally subsidized student…

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Exceptional Waste

If you want a glaring example of the types of favors and give-aways that the government provides the student loan industry at the expense of taxpayers, look no further than the "Exceptional Performers" program.

Under that program, the…

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Roundup: Week of August 27 - August 31

College Board Provided Gifts to Get on Preferred Lender Lists, Settlement with Connecticut AG Reveals

A week after the College Board announced it was leaving the student loan business, three colleges reached settlements with

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