Committee on Education and Labor - U.S. House of Representatives

Unethical Student Lender Practices

Homeissueshigher education unethical student lender practices

U.S. Education Secretary Spellings Testifies Before Committee

As the committee continued its investigation into the student loan scandal, U.S. Education Secretary Margaret Spellings appeared before the committee on May 10, testifying about the department's oversight of programs under its control, including the college loan programs. More »



Student Loan Sunshine Act Passes House, 414-3

The Student Loan Sunshine Act was passed by the House of Representatives on May 9, by an overwhelming vote of 414-3. The Act protects students and parents from exploitation by private student loan lenders and lenders who offer gifts to colleges as a way to secure loan business. The result of these relationships between the lenders and institutions results in more than just limited choices for consumers. Students and families have become the target of aggressive marketing for private loans. Private loans carry interest rates as high as 19 percent, compared to federal loans that are offered at 6.8 percent. Principles of the Student Loan Sunshine Act »
 

Student Lending Giant Paid College Officials

JP Morgan Chase, one of the nation's largest student lenders, hired officials from five different colleges to perform various services even as the officials continued on their colleges' payrolls. Click here to view the JP Morgan Chase documents»

This discovery came as part of Chairman Miller's investigation into unethical practices in the student loan industry. More »
 

Chairman Miller Asks Federal Trade Commission to Investigate Deceptive Lender Marketing Practices

Chairman Miller opened a new line of inquiry into the $85-billion-a-year student loan industry by asking the Federal Trade Commission to investigate the unfair and deceptive practices that lenders use to market their products and services to students. More »
 

Chairman Miller Calls for Emergency Moratorium on "Preferred Lender Lists"

To protect students and families from unethical student lender practices, Chairman George Miller called on Education Secretary Spellings on April 18 to immediately impose a moratorium on "preferred lender lists," which colleges and universities use to establish special relationships with student loan lenders. More ››
 

Latest News

Chairman Miller Statement on Resignation of Sallie Mae CEO »

Chairman Miller Statement at Committee Hearing On "Accountability for the Department of Education's Oversight of Student Loans and the Reading First Program" »

Student Lender Paid College Officials, Miller Investigation Reveals »

Watch NBC Nightly News coverage of the student loan scandal »

Student Lender Paid College Officials, Miller Investigation Reveals »

House Passes Bipartisan Legislation to End Unethical Practices in Student Loan Industry

Chairman Miller Statement on Passage of New York State Student Loan Legislation »

Inspector General Launches Investigation Requested by Chairman Miller into Education Department, Lender Conflicts of Interest »

Chairman Miller Opens New Line of Inquiry into Student Loan Industry »

Chairman Miller Requests All Spellings, White House Communications on Student Loan and Reading First Programs »

Chairman Miller Calls for Independent Investigation into Conflicts of Interest between Education Officials and Lenders »

Bush Administration 'Asleep at the Switch' on College Loan Oversight, Attorney General Cuomo Tells Education »

Chairman Miller: Student Loan Task Force No Substitute for Immediate Action »

Pamphlet: Democrats Take Action on Student Loan Scandal »
PDF, 86KB

Chairman Miller Calls on Education Department to Implement Emergency Reforms in Student Loan Industry »

Chairman Miller Statement on Introduction of Cuomo's Bill for New York Colleges »

Chairman Miller Statement on Private Buyout of Sallie Mae »

Chairman Miller Requests Information from CIT Group on Student Loan Xpress Stock Sale »

Chairman Miller Statement on Suspension of Student Lender Executives »

Chairman Miller Requests Information from Dept. of Education on Stock Sales and Potential Conflicts of Interest of Top Advisors »

Chairman Miller Requests Information From Student Lenders Regarding College Loan
Practices »