Financial Aid Scandal Analysis

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In the wake of the current financial aid scandal some pretty serious accusations and findings have been released to the public’s attention. This scandal is like many we see today filled with lies and deception. This though is not my moral argument. As the scandal continues to unfold, implementations are being made in order to reduce corruption and bring back structure to the system. The question of whether or not to get rid of the “preferred lender” list is the problem. This list is contains the names of preferred lenders of student loans. The moral issue of how and why companies’ names are placed on the list is the moral argument. I personally feel that just because some have tainted the validity of the list…show more content…
Apparently lenders have been paying a portion of the loan revenue they generate from a college’s students back to that school’s financial aid office. These payments are cycled back into financial aid but they add costs for the borrowers. “Cuomo and others have called them kickbacks” (CNN 2007). Shaw and Barry (2007) define a kickback as “a practice that involves a percentage payment to a person able to influence or control a source of income” (p.395) In this case the school or institution would be considered the person in Shaw and Barry’s…show more content…
I myself have had to take out student loans and realize the difficulty in doing so. Without the guidance and help from our financial aid advisors I may have never been able to do such a thing. I feel that the financial aid system is catching a bad rap from Mr. Cuomo and his office. At the beginning of the investigation they claimed that there was an “unholy alliance” between administrators and lenders”. They targeted the entire financial aid community in that statement. That statement should have just been aimed at those found in the wrong doing. After all you can’t blame an entire organization just because of a few bad seeds. Though the media projects this scandal as a larger than life problem the fact of the matter is that those involved are a fraction of the 12,000 financial aid officials and the more than 3,000 schools
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