Spellings Vows Headway on Student Loans

[struggle4progress]

Source: Associated Press

By NANCY ZUCKERBROD
Thursday, May 10, 2007; 12:14 PM

WASHINGTON -- Education Secretary Margaret Spellings sparred with the chairman of the House education committee Thursday amid allegations that the department's oversight of the student loan industry has been lax.

Rep. George Miller, D-Calif., said in a hearing that the department failed to do its job when it came to uncovering improper relationships between student lenders and colleges or student loan officials at those colleges.

Miller pointed to a 2003 notice from Education Department Inspector General John Higgins' office urging the department to take action to curb gift-giving by lenders to colleges or their staffs. ~snip~

The hearing was focused on recent findings of an investigation by New York Attorney General Andrew Cuomo into the $85 billion-a-year student loan industry. Cuomo has turned up evidence that some colleges received a percentage of loan proceeds from lenders given preferred status by the schools _ a practice Cuomo calls "kickbacks." ~snip~





Read more: http://www.washingtonpost.com/wp-dyn/content/article/2007/05/10/AR2007051000105.html

[blueinindiana]

1. I am sure she knows to give Head...way...I am sure..