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