Kickbacks on student loans

<p>According to a story in today's Wall Street Journal, The New York Attorney General has begun a probe of Education Finance Partners, Inc, a student loan provider for paying kickbacks to as many as 60 colleges for a spot on the colleges lists of "preferred lenders." The payments, called "revenue sharing" in which the college gets back a percentage of the loans that are made by EFP to students-- as much as $100,000. Some of the colleges named are Boston U., Drexel, and Duquesne.</p>

<p>According to the Journal "Such arrangements can be against the interests of the students and their families if the school is selecting the lender in order to receive the payments, instead of choosing another lender offering better terms."</p>

<p>I am shocked that a University might not operate in the best interest of its students. Not.</p>

<p>What might shock you is that the Federal Government is actually offering the same type of kickbacks to schools who are willing to switch to Direct Lending. They call it financial rewarding.</p>