Department of Education Proposes New Student Loan Rules, and its Student Loan Office Gets a New Chief

Check out this article in today's Washington Post describing regulations proposed yesterday by the U.S. Department of Education that would, as the Post explains it, "prohibit lenders from showering universities with gifts to drum up business."  The proposed rules were issued in response to "a nationwide investigation of the $85 billion-a-year [student loan] business that has exposed financial ties among lenders, school officials and government regulators."  Critics claim that the proposed rules are too weak.  They also complain that, even if finalized, the new rules would not go into effect until mid-2008 at the earliest.

The article also notes that there will be new leadership in the Department's student loan office, as Lawrence Warder, the Department's CFO, was named acting head.  Last month, the former head of that office, Theresa Shaw, resigned.

Comments

[dax]

this is a good one! keep up!