Probe shows conflicts over student loans
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Internal student loan industry documents unveiled Tuesday provide further evidence of conflicts of interest between banks and colleges or school officials.
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Fourteen firms are under scrutiny for possible accounting fraud, insider trading or other violations tied to loans made to borrowers with weak, or subprime, credit.
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A debate is festering among graduates and parents at St. Paul's, an elite school in New Hampshire, with critics accusing trustees and the rector of mismanagement.
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The White House could have closed a loophole through which student loan companies are billing the federal government nearly a billion dollars, but chose not to.
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Accounting problems at Fannie Mae, the giant mortgage company, have prompted an investigation by the Securities and Exchange Commission.
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Democrats in Congress are pushing to overhaul the nation's student loan system with legislation that would cut federal subsidies to lending companies by as much as $19 billion, channel most of those savings to student aid and ease repayment rules for borrowers.
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Congress is trying to end a practice that unintentionally has allowed banks to take in billions of dollars meant to help students pay for college.
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An antitrust committee was supposed to examine the potential deal on Friday but says '"scheduling conflicts" got in the way.
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Â· 'Alarming' misconceptions uncovered in surveyÂ· Tuition fees led to fall in university applications
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US Education Secretary Margaret Spellings, criticized for her oversight of the $85 billion-a-year student-loan industry, proposed banning company gifts to colleges and establishing rules for how schools recommend lenders.
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The number of loans past due among people with weak credit histories rose to 13.33 percent. One lender, New Century, faces delisting and an S.E.C. investigation.
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On the heels of a student loan scandal, some higher education officials have called a conferenceâs format deeply troubling.
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The government is paying hundreds of millions of dollars in unnecessary subsidies to student loan companies even though the White House has the authority to cut them off.
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Federal investigators raided three for-profit college campuses this week, carting away documents in a U.S. Education Department probe.
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After months of scandal in the student loan business, a federal regulator said on Monday that recent research revealed a potentially worrisome lack of competing lenders at hundreds of U.S. colleges.
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Students across the board are facing tuition fee increases of up to ten percent, which the University blames on a lack of Government funding.
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College graduates with heavy student loan debt face a complicated landscape this year as they approach the annual decision whether to consolidate their loans into a single payment plan.