Refinance Information

A Congressional committee has O.K.’d a measure designed to eliminate deceptive marketing procedures in the troubled student loan industry. The Congressional panel is also encouraging universities to reign in high tuition costs and offer more assistance with the use of personal loans.

The legislation emerged following a scandal involving questionable dealings between lenders and college officials—a scandal that might have cost students money both in the long-run and the short-run.
The bill calls for codes of conduct for lenders and universities regarding the handling of student loans. The measure also calls for more information to be shared with students and parents about loans. Universities would also be required to reduce the level of tuition increases.

A member of the House Education Committee, Rep. Howard McKeon (R-CA), told the media, “This bill includes meaningful steps to hold colleges and universities accountable for excessive tuition increases.” Meanwhile, the bill’s sponsor, Rep. George Miller (D-CA) said the measure “would help colleges rein in…price increases by providing them with incentives.”

It appears that both major political parties believe something needs to be done about both high college costs and the student loan scandals. Party leaders seem to agree that the bill is the prime vehicle for doing just that. As a result, the measure is expected to win quick passage in the House. The Senate has already passed a similar bill.

However, both the Senate and the House have to come to agreement on a single bill. Such a consensus is unlikely to be achieved until early next year. The compromise bill would then be sent to President George W. Bush for his signature.

Student loans have become a common way to pay the high cost of going to college. However, college costs have become so exorbitant that it can take years, even decades, for college graduates to pay off their loans. In fact, some grads postpone starting a family or buying a house because of massive student loan debt.