Hare Praises Madigan for Efforts in Student Loan Scandal
Congressman Phil Hare (D-IL), a member of the House Committee on Education and Labor, today praised Illinois Attorney General Lisa Madigan following an investigative hearing into the unethical practices and conflicts of interest that have recently been revealed within the student loan industry.
"The agreements reached between Attorney General Madigan and both DeVry University in Oakbrook Terrace and Career Education in Hoffman Estates will ensure that students and their families are protected from student loan profiteering," Hare said. "I am proud that Illinois is a leader in the effort to bring transparency and fairness back to the lending process."
According to the Associated Press, both institutions agreed to a code of conduct to protect students from kickbacks paid to colleges by lenders in exchange for steering students their way. In addition, Career Education agreed to pay $21,000 to a government fund that helps teach parents and students about college loans.
"Make no mistakesuccessful agreements reached by states are no substitute for a federal policy that protects our students and their families," Hare said. "The Department of Education has a responsibility to get control of this growing scandal. Chairman George Miller has rightly called on Secretary Spellings to, among other things; impose a moratorium on preferred lenders lists.'"
Hare is a co-sponsor of the Student Loan Sunshine Act, which requires full disclosure of special arrangements between lenders and institutions of higher education and bans lenders from offering higher education employees gifts of more than $10 in value. "Whether the Bush Administration takes action or not, this bill should be passed and signed into law as soon as possible."