<p><a href="http://biz.yahoo.com/ap/070513/student_loans_q_a.html?&.pf=personal-finance%5B/url%5D">http://biz.yahoo.com/ap/070513/student_loans_q_a.html?&.pf=personal-finance</a></p>
<p>"Many are confused by the patchwork of programs and options for borrowing, and get stuck with more debt than they should. And this year, there's a new wrinkle: An investigation by New York Attorney General Andrew Cuomo has exposed questionable financial arrangements -- he calls them "kickbacks" -- involving lending companies and universities. Cuomo also has accused the Education Department of being asleep at the switch in regulating the $85 billion industry.</p>
<p>The whole situation has called into question whether the advice many students get is really unbiased. The Associated Press collected advice from published resources and some independent experts on borrowing for college."</p>
<p>Actually, the problem is that people like Mr Cuomo have not truly looked at Financial Aid Offices as a whole. Instead, he is blowing out of proportion the actions of a very few and making it sound as if all FAA's are crooks. Many of the actions of Cuomo are already covered under Federal Regulations...so this is just one person, going beyond his knowledge base, and wasting taxpayer dollars. </p>
<p>If you want to discuss kickbacks....just look to the Direct Lending Program...in which there are no lenders involved...and see how much is given to schools for making the switch. And then, go and talk to actual Financial Aid Administrators and Counselors and real students across the country...see what it is we really DO discuss in our counselling sessions with students...and what it is that lenders truly do DO for FA Offices. You will see a much different picture than Cuomo has painted.</p>
<p>And yes....these are the angry rantings of a Financial Aid Counselor. I am very upset that one man (Cuomo) has labelled all FAA's as crooks when the vast majority of us truly do have the best interests of our students as our TOP priority. The only thing I have received from lenders: moral support when our office is so severely overworked we are almost in tears...and a few ink pens, sticky pads, pencils, highlighters, notepads. And to be 100% honest....You will find those items in our office from lenders who have never been on our recommended list of lenders and who will NEVER be placed on there because it just wouldn't be in our student's best interest.</p>
<p>I would recommend that every student who is able pull at least a few hours as a work-study student in the Financial Aid Office at their respective school and see just how little Lenders actually do for the schools....then maybe someone will get it.</p>
<p>^^Sad but typical story of the bad apple. I'm sure that there are hundreds (thousands) of legit working relationships between lenders and college finaid depts. Unfortunately, I am willing to bet that there are a number of shady dealers, using graft to influence students/school FA Offices.</p>
<p>A company I worked for used to have purch. agents who would end up with tremendous windfalls related to the awarding of business. Boats, swimming pools, vacations.... Now this company has a zero tolerance policy relative to this. A supplier or potential supplier can not even buy a lunch for anyone at the company. Not even give a pen or penlight flashlight.</p>
<p>I feel for you Nikkiil. Unfortunately, the bad apples end up spreading worms and bruises to the whole basket.</p>