Hare: Relationships Between Student Loan Lenders and Universities Must be Transparent
Congressman Phil Hare (D-IL), a member of the House Committee on Education and Labor, today released the following statement in response to recent news reports about Western Illinois University's relationship with student loan lender Nelnet.
"With the overall cost of a college education continuing to skyrocket, students and their families deserve to know exactly where their money is going.
"Western Illinois University should have disclosed the fact that they were receiving a portion of their students' loan moneyeven if it was going to a good cause.
"I am pleased that Western is reassessing their program and am confident they will move to a process that is more transparent.
"Across the nation, questionable relationships between universities and student loan lenders are threatening a population of already vulnerable students. For this reason, I am 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.
"I am pleased that the House Education and Labor Committee, led by Chairman George Miller, is investigating this issue thoroughly and plans to hold hearings in the coming days."