A growing college loan scandal nationwide is prompting action from Florida's attorney general.
Bill McCollum is proposing a code of conduct for public university administrators to make sure they don't personally benefit from loan companies.
There's a lot of money at stake in the college loan industry. Students took out 85 billion dollars worth of loans last year.
Investigations by attorneys general from around the country have uncovered some cases in which lenders have given university officials gifts, trips and stock benefits for steering students to certain loan companies, which may not offer the best deals.
In New York, loan administrators were suspended at six universities for allegedly accepting fees and stocks from a lender.
McCollum says his investigation reveals no evidence of conflicts of interest at Florida's public universities, but the probe continues into several private colleges.
The proposed code of conduct prohibits any university employees from accepting cash, stocks, gifts, entertainment or trips from a loan company.
Plus, it bans the practice of allowing lenders to staff university financial aid offices. The code of conduct would also force universities to provide detailed disclosures about preferred lenders to students, including information on other loan companies and interest rates.
The Florida Board of Governors, which oversees the state's public universities, will consider the proposed code of conduct at its meeting tomorrow.
Source:-http://www.wmbb.com/gulfcoastwest/mbb/
news.apx.-content-articles-MBB-2007-12-05-0020.html |
Students financial aid