Report on Marketing Practices in the Federal Family Education Loan Program (PDF; 705 KB)
Source: U.S. Senate Committee on Health, Education, Labor, and Pensions
From press release (PDF; 20 KB):

Key findings of the report include:

• Some FFEL lenders provided compensation to schools with the expectation, and in some cases an explicit agreement, that the school will give the lenders preferential treatment, including placement on the school’s preferred lender list.
• Other FFEL lenders spent large sums on travel and accommodation expenses for meetings of Advisory Boards comprised of school officials, and often expected these benefits to yield increased loan volume, or other preferential treatment, at Board members’ schools.
• School officials held financial interests, including stock and options to purchase stock, in FFEL lenders which are on the preferred lender list or are otherwise recommended to students.
• School officials received payments for consulting and other services from FFEL lenders which are on the preferred lender list or are otherwise recommended to students.

This entry was posted on Tuesday, June 19th, 2007 at 12:29 pm and is filed under Business and economics, Consumer issues, Education, Ethics, Postsecondary. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.