College Loan is like Peeling Onion

The similarity is due to what the New York Attorney General found out while investigating what is taking place between the student loan companies and those in charge of the lending process in the various colleges across the country, and the more they look into it, the involvement is getting deeper embracing many individuals from the lending establishments and the various schools. The complicated relationship is not only giving a given number of lenders a preferential treatment by recommending them as the preferred lenders for the students, but the financial aid directors in colleges across the country hold a significant amount of shares in the lending companies that they are recommending to the students. Furthermore, there is a bonus system where those that lured more student borrowers are found to be participants that are also found to be beneficial for both the officers and the schools.

Investigating the $85 billion student loan industry underwent after a lender complained to the Attorney General that many lenders are locked out of the lending process since there is an arrangement between a few lenders and the various schools that have interlocked interest. Till date as much as six schools that included University of Pennsylvania and New York University had agreed to refund students up to $3.27 million for incurring cost that was inflated by revenue sharing agreements. The investigation has continued and it is difficult to say how many of the schools are involved in the preferential treatment of lenders and being benefited through the process, but the possibility there is more involvement.