Russians Responsible for Student Loan Mess?

The AP’s Connie Cass has written a story that covers the 55-year history of federal student loans and why our government got involved in the loan business. Would you believe it has to do with Russia?

She starts with how President Eisenhower established a low-interest college loan program through the National Defense Education Act of 1958, where the loan dollars came directly from the government, up until the most recent interest debates. Click here for more.

For-Profits Attacked Again 

The Consumer Financial Protection Bureau’s Holly Petraeus was on Capital Hill this week arguing that a federal rule encourages for-profit colleges to exploit veterans. In testimony before the Senate Homeland Security and Governmental Affairs Committee, Petraeus said the rule gives “some for-profit colleges an incentive to see service members as nothing more than dollar signs in uniform and to use some very unscrupulous marketing techniques.”

Steve Gunderson, President of the Association of Private-Sector Colleges and Universities defended the sector saying, “An institution that is close to the 90 percent threshold is enrolling low-income students in need of postsecondary education. The government should be encouraging this behavior… This metric undercuts the very reason we have loan and grant programs.”

Leon Panetta Quits Corinthian Board

The Huffington Post’s David Halperin reported that Leon Panetta has resigned from the Corinthian board after 11 weeks of service.

When Panetta joined the board, Halperin questioned why a man with a “distinguished record of service could endorse a business and an industry with a particularly bad record when it comes to recruiting and educating U.S. troops and veterans.”

In the article, Halperin also calls for National Urban League President Marc Morial to resign. Read more here.

By Marc Apple