Banks treat college financial aid officers to Tequila and Saunas in exchange for preferential treatment
You can read the entire 60-page report that was the result of an investigation by he Chairman’s Staff of the Senate Health, Education, Labor and Pensions Committee that investigated marketing practices in the Federal Family Education Loan program (“FFEL”). It demonstrates a new definition of family values as practiced by banks who ply financial aid officers for preferential treatment in offering their student load packages to students at many universities. Hey, after a few junkets including spa make-overs, tequila on the house, and assorted gifts, why wouldn’t you push loans offered by the bank that sponsored them. As for the students and their parents, let them eat s–t!.
Here is a summary of the report in case you don’t have time for 60-pages of nauseating particulars:
Some FFEL lenders provided compensation to schools with the expectation, and in some cases an explicit agreement, that the school will give the lenders preferential treatment, including placement on the school’s preferred lender
list.
• Other FFEL lenders spent large sums on travel and accommodation expenses for meetings of Advisory Boards comprised of school officials, and often expected these benefits to yield increased loan volume, or other preferential
treatment, at Board members’ schools.
• School officials held financial interests, including stock and options to purchase stock, in FFEL lenders which are on the preferred lender list or are otherwise recommended to students.
• School officials received payments for consulting and other services from FFEL lenders which are on the preferred lender list or are otherwise recommended to students.
You can read the entire 60-pages here:Student Loan Report
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September 3rd, 2007 at 7:34 pm
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