<p>"But for goodness sakes why is a student/parent loan at a higher interest rate than a mortgage?? "</p>
<p>Because unfortunately US education policy has been corrupted by these companies and they view the government and students as little more than an cash flow asset. To the extent that many cannot fully comprehend the level to which these shadow advisers are dictating policy. Literally, as several prominent writers have noted these companies have power that the mob would envy.
And its certainly not business, fair competition or free trade. It's more a very dangerous and socially destructive form of corporatism.
And yes, Perkin's and other programs which are not easily channeled and 'enhanced' for these corporations, will probably be hacked. That has already been done indirectly since the 90's via cuts in Pells and etc. The whole situation has developed as a long term agenda, and although many perceive the recent decision by the house as benefiting families and students...looking past the shiny glass, its very much intended to benefit the largest servicing organizations. Students have very little to actually do with the deeper intent of these deliberations... </p>
<p>Some have commented, but its hard to get the word out. And even if the word is out this cabal has such influence in DC, they can simply view the concerns, or even distress, of those affected by their actions, as unimportant.
The links Sueinphilly provided demonstrate that there is growing grassroots concern about the situation. But the current regime in Washington is so enmeshed in the concept of keeping this destructive status quo, that they have no cause to be listening. And its been a long standing issue, On Point radio did a broadcast about the whole mess last year, and that was obviously before the current mire. And this program is well worth listening to, if for no other reason than to hear the evasions of government officials when asked about development and aims of policy. (those interested can link back using the information pasted below). But concerned press, social organizations and student groups simply do not have the access and money (which ironically has been provided by us and our 'government') that these companies can now command.</p>
<p>Student Loans Scandal<br>
Aired: Monday, May 14, 2007 11-12PM ET</p>
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<p>It seems like five minutes after the college acceptance letter that the first bill arrives. For many American families and students, handling the cost of college is a huge struggle, where every penny counts.</p>
<p>Which makes the scandal over student loans still growing in Washington and around the country particularly galling.</p>
<p>Giant lenders getting jacked-up interest rates from sweetheart college loan deals. College administrators and politicians getting what looks like kickbacks. And ordinary Americans left holding the bag.</p>
<p>This hour On Point: the spreading college loan scandal, and how it really worked..</p>
<p>Guests
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· Jon Oberg, former Department of Education researcher and expert on college financing.
· Paul Baskin, senior reporter, covering the student loan story for the Chronicle of Higher Education
· Robert Shireman, President of the Institute of College Access and Success and executive director of the Project on Student Debt Raza Khan, co-founder and president of "My Rich Uncle," a student loan company
· Sara MArtinez Tucker, Undersecretary of Education.</p>