Student loan help could be on the way
February 13, 2007 at 1:40 pm by Alyssa Abkowitz in NewsThere’s a new political action committee out there that might just actually do some good: Student Loan Justice. It’s a grassroots group that helped U.S. Sen. Hillary Clinton create her proposed Student Borrower Bill of Rights. Sure, Congress just approved a measure that would cut interest rates on federally subsidized loans, but it doesn’t address any of the student-loan abuses.
The Clinton proposal would stop some of the abuse. The measure would, among other things, ban “school as lender” programs, where colleges urge students to use certain lenders because the schools get kickbacks — usually by getting university activities underwritten — from lending giants.
That’s the part of student lending that really pisses me off. It’s already ridiculous that lenders such as Sallie Mae slap harsh penalties on students who can’t pay back the loans, which are often much more than the students originally borrowed. But for a university to knowingly aid these �ber-lenders by luring students with free sandwiches and T-shirts at tables inside the student center in the early weeks of a semester is outrageous. Colleges are supposed to create a fostering atmosphere where students can learn — not a community that hangs its students out to dry. I guess any semblance of paternal instincts in higher education has gone out the window. Let’s hope Clinton can push this proposal forward so students aren’t saddled with enormous amounts of debt that makes getting on with life after graduation a tall order.
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