Copyright© 2007 by School Services of California, Inc.

                                      Volume 20                   For Publication Date: June 22, 2007             No. 14

Probe into Student Loan Industry 

In recent developments of inappropriate lending practices and conflict of interest relationships with higher education, the student loan industry has come under fire.   

California Attorney General Jerry Brown has demanded two California student loan businesses produce documents regarding any financial relationships with public and private universities and vocational schools in California as part of the Department of Justice’s ongoing probe into the student-loan industry. The department is seeking the information to determine if the lenders made unlawful payments to schools or university personnel. 

Attorney General Brown said, “Schools and universities in California must be above reproach, and no further burdens should be visited upon students who are already weighed down by escalating student-debt responsibilities.” 

Attorney General Brown has joined the national movement on this issue to safeguard students and families nationwide from deceptive practices in the college loan industry.    He has signed on with 31 other Attorneys General urging the U.S. Senate to enact the Student Loan Sunshine Act, a new federal law to safeguard students from deceptive practices.

—Jamillah Moore, Ed.D.