| Many student alumni associations have been held up | | | | hold with lenders are ethical. The New York legislature |
| to the flame. Accusations and findings of guilt affecting | | | | passed a bill that keeps universities from conducting |
| student alumni associations have been all over the | | | | student loan business that results in payments or perks |
| news in the last year. Some student loan lenders have | | | | from a lender. The following investigations led down a |
| been caught paying off university student alumni | | | | long trail of conflicts of interest. The New York |
| associations' key players in order to get information | | | | legislature bill was just the start of the repercussions |
| about graduates. They have used the information and | | | | that were about to rain down on student alumni |
| data about students and student alumni to market | | | | associations and student loan lenders. |
| certain financial products directly to them. Student | | | | President Bush signed the bill that overhauled student |
| alumni associations have been steering students and | | | | aid policies. The bill was meant to restore a balance in |
| alumni towards these lenders for years. In a scheme | | | | the student loan system by benefiting students, not |
| like this, both student loan lenders and student alumni | | | | lenders and banks. Although many lenders and financial |
| associations stand to benefit. The problem is, students | | | | institutions saw parts of the bill as unfair, the decision |
| and alumni are the ones that get caught up in the | | | | stood and we were on our way to a better student |
| trouble that it causes. They end up with student loans | | | | loan system. |
| and financial products that ultimately punish them with | | | | When you are getting ready to apply for financial aid |
| high interest rates and terms that are over the top. | | | | and student loans, make sure that you do your own |
| The confusion comes in when you consider that many | | | | research. There are companies out there that offer |
| student alumni associations are separate entities from | | | | products from many lenders, expanding your |
| the university, although many of the people working at | | | | resources for student loans. You can also take |
| the student alumni associations are university | | | | comfort in the fact that there are now laws in place |
| employees. Universities are required by law to be | | | | limiting the amount of corruption in the student loan |
| transparent in their dealings with students. This basically | | | | system. Universities found to be involved in any sort of |
| means that they can't push you, as a student, in a | | | | kickback scheme will be punished by having less |
| direction that may not be best for you. The story | | | | access to federal loan programs, along with other |
| deepens when you consider that most of the people | | | | ramifications. Many of the investigations and |
| affected by the misdealings of the student alumni | | | | enforcements of policies have not happened yet, but |
| associations are alumni. They are no longer students, | | | | soon they will. Universities and lenders will be held will |
| so they get caught in a loop-hole that the student | | | | be held accountable for dealings that resulted in |
| alumni association could get away with. | | | | students and alumni not having their choice of lender |
| Since then, student alumni associations have been | | | | as a result of the kickback scheme. |
| pressed to make sure that any contracts that they | | | | |