Graft surrounding student loan
Monday, 18 June 2007
Fazle Rashid from New York
CORRUPTION and graft surrounding the student loan in US universities and colleges have not only taken an embarrassing turn and is sweeping through and has not even spared such world renowned institution like John Hopkins.
The moot point behind this unsavoury development is the greed of the lenders (famed banking institutions) to grab exclusive right to do business by heavily greasing the palms of those who matter in college and university administration.
Gifts and pay-offs to universities and their officials by student lenders were far more pervasive than what are being disclosed. In some cases, official themselves demanded such undue benefits in exchange for promoting lenders to students, a Senate enquiry report carried by the New York Times said. The Senate probe committee was headed by Edward Kennedy.
The aggressive marketing practices by the lenders, in many cases, were not only unethical but also, possibly, illegal. Such famed banking institutions like Citibank, Chase and Bank of America are involved in this trade. John Hopkins University has agreed to five years of monitoring and pay $1.1 million to settle an investigation of its student loan practices. Bank of America hosted a lunch at the college of William and Mary at a cost of $11,412 and Citibank held a reception for new students at Chaminade University in Hawaii in exchange for business. The deal did not work out and volume of bank's business was reduced significantly. The Senate report threw light upon lenders dealings with Lawrence Butt, financial aid director at the University of Texas, Austin, and Ellen Frishberg, financial aid official at the John Hopkins.
Butt was fired and Ms Frishberg resigned after it was revealed that both have gained financial benefits. The banks defended themselves and denied any wrong-doing.
There have been several instances of school and college funds being pilfered by officials who managed the finances of the institutions.
CORRUPTION and graft surrounding the student loan in US universities and colleges have not only taken an embarrassing turn and is sweeping through and has not even spared such world renowned institution like John Hopkins.
The moot point behind this unsavoury development is the greed of the lenders (famed banking institutions) to grab exclusive right to do business by heavily greasing the palms of those who matter in college and university administration.
Gifts and pay-offs to universities and their officials by student lenders were far more pervasive than what are being disclosed. In some cases, official themselves demanded such undue benefits in exchange for promoting lenders to students, a Senate enquiry report carried by the New York Times said. The Senate probe committee was headed by Edward Kennedy.
The aggressive marketing practices by the lenders, in many cases, were not only unethical but also, possibly, illegal. Such famed banking institutions like Citibank, Chase and Bank of America are involved in this trade. John Hopkins University has agreed to five years of monitoring and pay $1.1 million to settle an investigation of its student loan practices. Bank of America hosted a lunch at the college of William and Mary at a cost of $11,412 and Citibank held a reception for new students at Chaminade University in Hawaii in exchange for business. The deal did not work out and volume of bank's business was reduced significantly. The Senate report threw light upon lenders dealings with Lawrence Butt, financial aid director at the University of Texas, Austin, and Ellen Frishberg, financial aid official at the John Hopkins.
Butt was fired and Ms Frishberg resigned after it was revealed that both have gained financial benefits. The banks defended themselves and denied any wrong-doing.
There have been several instances of school and college funds being pilfered by officials who managed the finances of the institutions.