Theres something broken in Americas financial aid system: Really? What is broken in American financial aid system is more than something. It is many and hydra-headed. However, the emphasis on remedies ignores the most critical aspect; systemic fraud by so-called for-profit colleges and universities better and more appropriately called for-frauds. Department of Education misplaces its priority by dwelling on a need for more and more disclosures, enlightening loan borrowers (read that as nothing) and relying heavily on accreditors, many of which only cater to their own needs in conflict-of-interest situations. These for-frauds also find ready accomplices among lawmakers keener on maintaining a flow of campaign donations and other underhand favors! All these actively oil the machinery of for-fraud colleges and universities to keep criminally ripping off millions of hapless American students and taxpayers. College fees are high, yes; but not the main issue. Many students can use financial literacy; true, but not the driving force for the financial aid mess. Even if college fees were cheaper and students buried in disclosures, students and taxpayers would not be protected from the well-oiled and highly connected fraudulent antics of for-frauds. Most of these educational charlatans busy themselves stockpiling an arsenal of fraudulent schemes. As soon as they are caught in one scheme, they roll out fresh ones from their armory. When caught in one scheme type or another, most for-frauds simply pay imposed fines, chant ad nauseam a ridiculous caveat of neither admitting nor denying fault and promptly roll out new criminal schemes to keep defrauding millions of students and taxpayers. So far, in relative terms, all the schemers have received in return, if punished at all, are slaps on the wrists. Many stakeholders, including government itself, have inherent conflicts of interests; untrustworthy lawmakers swap campaign donations and assorted underhand favors with these for-frauds for legislative and moral support. Fraud vitiates contract. For-fraud colleges and universities vest confidence in the many stakeholders with financial interests in their mindless games that will render remote any prospect of their criminal prosecution. The immediate victims of the systemic frauds are millions of students and taxpayers. The larger society also receives millions in uneducated graduates streaming out of these diploma mills. These issues are not insurmountable, but for well-heeled vested interests. An army of for-fraud colleges and universities, education loan lenders and servicers (aka loan loaders such as Sallie Mae) keeps preying on taxpayers, students and their parents. If nothing is done and done urgently on the deplorable acts of for-fraud colleges and universities and their accomplices, the negative impact of sub-prime mortgage frauds will pale in comparison. Many for-frauds will end up shutting their doors and disappearing with their loot unless special provisions are made to protect the interests of millions of their hapless victims in students, parents and American taxpayers. finance.yahoo/news/there-s-something-broken-in-america-s-financial-aid-system-141711593.html?bcmt=comments-postbox
Posted on: Sat, 05 Jul 2014 02:19:35 +0000
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