Wednesday, April 11, 2007

Newshour--further thoughts

I appreciate the kind words, y'all.
Someone asked me why there wasn't some "conservative yahoo" up there debating me.
The interesting thing about this scandal as it continues to unfold is that neither the lenders' lobbyists (ie the Consumer Bankers Association) or the financial aid group (NASFAA) seem willing to defend the financial aid officers. They are twistin in the breeze even though the corruption demonstrated by the college-level officials seems petty compared to the corruption on the federal level. How about Spellings letting Nelnet keep $278 million in improper overpayments -- payments her own inspector general said were improper--and refusing to even look to see how much other student loan companies were also overpaid thanks to the 9.5% loophole?

The New York Times says Senate investigators are now calling the stock transfers to Fontana and the financial aid directors from Student Loan Xpress's president possible "securities fraud". Meaning a criminal investigation. Sounds like Al-Capone-for-tax-fraud to me.

1 comment:

Anonymous said...

You are really uninformed. NASFAA and Sallie Mae have been very outspoken in their defense of financial aid professionals.

Do your homework.