Unethical Student Lender Practices

Borrower Protections Included in Higher Education Opportunity Act

The Higher Education Opportunity Act of 2008 (H.R. 4137) was signed into law on August 14, 2008.  Passed by the House on July 31, 2008 by a vote of 380-49, this law overhauled our nation's higher education laws, and included protections for borrowers against questionable 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, 2007, 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, 2007, 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, 2007 to immediately impose a moratorium on "preferred lender lists," which colleges and universities use to establish special relationships with student loan lenders. More ››