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Jul 05, 2007 -- Student lending scandal gets even uglier

Clark has been telling you about the corruption going on in student loan programs at colleges these days. Well, there is a new even more unbelievable chapter in this scandal. Not only are these lenders convincing financial aid employees to push their products by giving them kickbacks and buyoffs. Now, when people call the college financial aid offices, callers are actually rerouted to the lender’s office. The banking salespeople answering the phone introduce themselves as college employees. It has happened at Texas Tech University, where the skuzzy lenders are answering the phones “Texas Tech Financial Center.” In fact, the lenders aren’t allowed to say who they are, even if a caller asks. The head of financial aid at Texas Tech said it would confuse people if the lender employees answered the phone with their true identities. How did financial aid get so corrupt? Just remember that you can’t trust these offices and you need to do the work yourself if you have a son or daughter in college.

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