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Mar29
Colleges Hire Lenders to Take Calls on Financial Aid
The New York Times reports that when students call a university, it is a lender that answers the phone and not the college. Worse yet...the lender identifies iitself as an arm of the university.

Some 20 institutions are using call centers that are operated by Sallie Mae, the nation's largest student lender.

About 10 other colleges use Nelnet.
"Officials at loan companies say their operators follow a script worked out by the colleges and do not steer students to their own products." Uh, yeah, right!

"Colleges and universities also say they use “secret shoppers” to verify that callers are getting accurate information." Uh...are these secret shoppers outsourced, too?
Why don't the schools just say, "Hey, we don't have the people power to answerfinancial.aid.JPG all of your questions. But we have chosen a lender who knows a lot about us and about other resources as well. You will be connected to them."

And then all the discussion of conflict of interest will disappear. No?

Why does a student loan call center have to identify itself as an arm of a college?  

If the arrangement is a good thing for the lender, the student and the college, then why can't it be a good thing out in the open?

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