http://www.cbsnews.com/stories/2007/04/02/...in2640251.shtml

imagine that...

I went to two NY universities. I don't remember being given a choice as to which SL Company I could use.

The article talked about lower interest rates, so I would have to assume that this is all about Private Loans.

When I was working FA, we gave borrowers a list of lenders they could use for private loans. We didnt have a prefered lender that I knew of. I am pretty sure TERI was at the top of the list. I know that Wells Fargo and another bank local to the U, had loan officers that worked almost exclusively with private loans and those went thru pretty quick. But the choice was completely up to the student.

Some lenders are making private loans available to borrowers who would not normally qualify in exchange for being a "preferred" FFELP lender for students and/or consolidater for alumni.

The school I went to says this on their website about Stafford lenders: "We prefer the following lenders: Sallie Mae, Citibank, and Chase... our comparison of services offerred and long-term benefits (including repayment benefits) are more beneficial to our borrowers."

The loans all end up being serviced by SLM, and they don't offer any borrower benefits you couldn't get from most other FFELP lender/servicers. On another area of the website, nowhere remotely near admissions of financial aid, the school thanks "The Sallie Mae Foundation for their generous support."

Ahhh, that makes sense. I think I had Stafford loans, which were through Citibank, called The Student Loan Corporation.

Still Kickbacks are no good, unless the politicians are getting them too. Someone probably forgot to put Cuomo on the payroll like Spitzer was. This is a case that Spitzer would have eaten up. Or did he start it and Cuomo is just finishing ?

I worked at a Direct Loan school....I was so glad of not having to deal with FFELP guarantors! DL was so much easier and much more stream lined.

That's ok, the financial aid director for University of Texas-Austin (where I am) was asked to resign because of possible kickbacks--or because of the shares of stock he owned in the leading SL lender here on campus--I don't know the difference (if there is one) and/or whether it's one or the other or a combination..It got confusing to me.

ETA: Here we can choose who our lenders are though (at least with the Stafford loans). First two years I had Wells Fargo, then decided to switch to UFCU. And I've never seen them recommend one lender over the other. They just give an alphabetical list of the lenders and you click on the lender you want.