In late April 2007, news of a scandal was reported that financial aid officers in a number of prestigious and renowned institutions of higher learning were taking “kickbacks from lenders of Student Loans,” and the disgusting aspect of this horrible thievery was that the students were paying for it.
How much lower can people stoop for monetary gain?
If the financial aid officers involved have not been fired, they should have been.
Difficult to understand is the method by which students borrow money to subsidize college and postgraduate education. Following completion of their training, they are required to repay the loans at a compounded rate of interest. The result is the government is cheating itself because in addition to repaying the loan, the former student probably will be making mortgage and car payments that leave little or no means for consumer spending.
One former student bemoaned his situation to the point that his student loan of $45,000 had escalated to $104,000 with the end not in sight!
This impacts the gross national product and slows down the economy.
To improve this condition, there should be added a section in the U.S. Department of Education for granting student loans at the lowest possible rate of simple interest that would make the process self-supporting and at no cost to the government.
This is similar to small business loans granted to people who want to start their own business except that granting student loans is an investment in the future of students who will be our members of Congress, mayors, governors, city council persons, presidents, etc. There is little doubt that the repayment rate would improve immeasurably.
It is recommended that the National Education Association and all teachers unions unite and put pressure on the government to grant loans at a reasonable rate of simple interest. This will ultimately be beneficial to the government, the student, and society.
Change is in order.