Loss of Innocence: Universities and Student Loans

Discovering the Dark Side of Student Loans

Going back to school for a Master's Degree had long been problematic for this author because of the time and economic demands of my day to day life. In 2005, I was a Mortgage Broker and a Co-Owner of a small business with an all too hectic life. It had been more than twenty years since I last went to school and the realities of money and debt had kept me from finishing my dreams. Still, one College Counselor after another peddled the all too easy easy availability of student loans for those who wanted to finish their teaching degrees.

Oddly enough, It took me awhile to figure out that there might just be something amiss with this whole picture. After all, these College Counselors were professionals looking out for the best interest of the student. Right? Universities were dedicated to the pursuit of knowledge and Financial Aide Counselors represented those same beliefs. Sadly, it did not take long to discover that there was a darker side to the student loan industry. "Gifts and payoffs to universities and their officials by student lenders were far more pervasive than had been disclosed and in some cases were demanded by university officials themselves in exchange for promoting lenders to students, according to a Senate report on the student loan industry issued yesterday" (Aronson and Schemo, 2007). How could an ex Mortgage Broker have failed to notice the curious links between the lending industry and academia?

College Cutbacks Lead to Shortcuts