Student Loans - The Dark Side of....

I just posted in my Financial Basics Blog about a recent article I was reading about student loans.It seems that some colleges and schools were receiving "kickbacks" and other things from student loan companies. Some of the for-profit schools and colleges were even accused of accepting students who didn't even have a good chance of graduating just so that student could apply for (and the school would get) the student loan.

Some of these student loan companies are protected by the federal government if some of their student loans go into default so getting as many students as they can to sign up for these student loans means more money for them.

I also talk about some of the programs that help students pay back their student loans on my Grants Related page.

What is being done about this? Well one congressman wants to introduce a bill that will stop the colleges/schools from acting as the middlemen for these student loan companies.