Capturing the newest Student loan Scandal Underneath the Carpet
The latest student loan globe need thought all of us have short recollections. Within the effort to help you derail legislation who reduce the fresh new Government Nearest and dearest Student loan (FFEL) system, loan providers was in fact sharing talking items which have Senators and you will professionals arguing the “pay for enjoy” scandals you to definitely engulfed the new education loan industry into the 2007 have been far ado regarding the absolutely nothing.
“Immediately after thorough review by the Congress and different condition Attorney General, there have been zero findings you to definitely one employee otherwise a lender or college or university bankrupt any regulations, neither were there one criminal charges levied,” lenders penned in the talking activities – which Higher Ed See keeps received – that have been shared with Senate group.
When you find yourself you to definitely statement might have been theoretically true at that time it was first-made, it’s a beneficial brazen sweeping underneath the carpet out-of a beneficial scandal one to outraged brand new American personal, such as for example college students in addition to their parents. Ny Attorneys Standard Andrew Cuomo performed costs in the several colleges and you can loan providers, such as for example loan creatures Sallie Mae and you will Nelnet, which have violating state and federal rules, and you may registered lawsuits facing them. Simply put, these people were maybe not confident sufficient in regards to the legality of its techniques to protect them inside the court.
New lenders’ allege is especially cavalier simply because was in fact just able to don’t be punished because of who had been guarding new henhouse. (more…)