News

Student Loan Scandals

Uproar surrounding financial aid companies are leaving university students with few options

By STN2 Staff | 04/18/07 | Posted in News

The student loan industry is becoming a bigger business everyday, but now after both state and federal governmental agencies are investigating the private sector of student loans it looks like it could be in trouble. Companies, including industry leader Sallie Mae, have been accused of bribing university financial aid officials at schools in New York and others throughout the country.

University officials declined to give an on air interview, but in an email to STN the head of the financial aid office told how surprised she was by the allegations against the college loan industry.

Suzanne Peters, director of student financial aid, also included that the University of Hartford provides loans from over 70 different lenders and that during her years here, she has never been offered any of the completely inappropriate kick-backs.

“I think that it’s a shame and a scandal,” says freshman Kimberly Moses, “because the more financial opportunities that you offer people the more people that are able to come to college and if students find out that there are not many financial opportunities other than paying cash or paying for college themselves then they less likely to come to college.”

The University of Hartford financial aid office also says that students are given the advice about different loans to see which one would be best for the individual person. The suggestions made by the office are nothing more than that, students have the options with the help of the financial aid advisors, to accept or decline different loans.

College tuition has risen about 40% over the last five years while the median house income has only risen 4%. If you are looking at taking out a student loan, you can see your options at the school’s financial aid site (http://admission.hartford.edu/financial_aid/types.htm)

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