<p>Not only have we been subject to preferential loan practices by university financial aid offices that constitute a clear conflict of interest, we've been getting soaked as taxpayers.</p>
<p>While I won't try to say that this type of thing doesn't happen on the FELLP lending side of student loans...the one thing that none of these recent articles mentions is that it is also happening on the direct lending side. The Federal Government offers incentives to schools who come to Direct Lending...giving them a chunk of the profits. So why all this nit-picking when FELLP lenders take an FA Office out to lunch once or twice a year....but nothing said about the tens of thousands of dollars being funnelled back to the schools by the government for going to Direct Loans.</p>