Monday, April 16, 2007

Student Loan Provider Settles

Sallie Mae has been one of a few student loan providers to draw fire lately for questionable practices. However, it also happens to be the largest provider in the $85 billion dollar United States student lending industry, so that makes things a bit more newsworthy. It turns out the company was providing student perks to schools and campus financial aid workers to get preferred status or the ability to charge inflated rates. Other companies to feel the heat recently include CitiBank and Student Loans Xpress. Here's my question... does anyone think that a $2 million dollar settlement means much to CIT, CitiBank or Sallie Mae? I'm going to guess that is looked at as one of the costs of doing business. Check out the full story at CNN and shop around if you are in the market for a student loan.

CNN - Nation's Largest Student Loan Provider Settles