Comments on Quick Takes: Cuomo Expands Probe, Lawmakers Sound Alarm on Loans, Fresno State Appeals, Push to Reverse Alabama Reforms, Fisk Eliminates Athletics, NCAA Penalties for Texas Christian

• Cuomo
• Posted by Unemployed in New York on February 29, 2008 at 8:15am EST

• Ask Mr. Cuomo about the loss of jobs in the student loan industry. His investigation was a major factor in the lender subsidy cuts passed by Congress last fall. The cuts were so deep that it makes the program barely profitable. A number of companies have pulled out of the federal student loan program or changed their business models thus resulting in job losses across the industry. Here are some companies: College Board, PHEAA, College Loan Corporation, National Education, Goal Financial, NelNet, etc. His actions have impacted hard working people and students. Companies that remain in the federal program have cut or eliminated benefit programs. No one has gained or benefited from his actions. Students and famlies are the ones losing out. There are no winners here.

  ANDREW CUOMO WHAT OVERALL GOOD HAS RESULTED FROM YOUR ACTIONS???

• Alabama in the national spotlight
• Posted by Glen S. McGhee , Dir., at Florida Higher Education Accountability Project on February 29, 2008 at 8:50am EST

• Unfortunately, corrupt organizational cultures in higher education are not that uncommon (cf. NY AG Cuomo's expanded probes).

  But corrupt organizational cultures can only survive with the widespread complicity of local trustees (and at least in Alabama, state legislators).

  From the article on Alabama's State Board of Education:
  "[Alabama's] State school board ... last summer approved rules that by 2010 will force state lawmakers who work in the two-year system to choose between their elected seats and their jobs. Some of those lawmakers have become focal points of an ongoing federal investigation into corruption in the two-year system."

  The fact that it took federal indictments to end "double dipping" demonstrates the potential for abuse and corruption at higher ed institutions *without* adequate accountability controls.

  The level of malfeasance and corruption in this case impugns the integrity of the state of Alabama, and through her, the South.
  http://blog.al.com/spotnews/2008/01/former_twoyear_chancellor_plea.html

• Cuomo's Investigation
• Posted by Adonis Metriotitis on February 29, 2008 at 9:20am EST

• Unemployed in New York--

  I sympathize with your trouble. Unemployment is something I hate for anyone to suffer through.

  But Cuomo's investigation has:

  1.) Ended conflicts of interest that did, in fact, end up costing students in the form of higher interest rates.
  2.) Brought attention to conflicts of interest in other areas of postsecondary education. Such conflicts inevitably cost students, families, and taxpayers, as they can contribute to higher costs, among other things.
  3.) Stemmed what seemed to be an increasingly common business practice among the loan companies.

  Which brings me to the unemployment issue. For years, student loans have, like other industries, been aggressive participants in the subprime lending frenzy. As we now see in industries like mortgage banking, credit cards, and now even mobile technology (Sprint just announced losses of $30 billion because they were trying leverage new sales on the backs of people with poor credit), the student loan industry is in for a market correction.

  I hardly think it is Andrew Cuomo's (or Congress', for that matter) fault that the student loan companies find themselves in this mess. So for any short-term hardship, loan companies really have only themselves to blame.

• Fisk
• Posted by Martin on February 29, 2008 at 10:05am EST

• I am truly sorry to hear that Fisk is doing away with NCAA Athletics. I remember in my early days in higher education when Fisk was a force in the HBCU community, however, I wonder if their troubles with enrollment and finance are just a social reflection of the inevitable demise of HBCU's in the south. Don't get me wrong, I think there is still a viable use for the historical part of the HBCU, I just think the survivability of these colleges and universities will greatly depend on their ability to be diverse and look toward opening their doors in an aggressive way for people of all color. Just my humble observation.

• Cuomo=Hero
• Posted by Tim Lacy on February 29, 2008 at 2:05pm EST

• Dear Unemployed In New York,

  From my perch as an adjunct instructor of young first and second-year students, as well as a student advisor to those sometimes duped/conned/sucked in by predatory student loan lenders, I see Andrew Cuomo as a hero to the disadvantaged. He's fast becoming symbolic of (1) the backlash against university as corporation, and of (2) attempts to watch-dog higher education in general as a "non-profit" (for the most part) enterprise. Too many higher education institutions have hidden behind the non-profit designation to amass millions for their endowments and capital projects but pass along little to students directly.

  To Andrew Cuomo I say:

  Keep it up. Do not worry about stepping on the toes of pseudo-educational institutions and their employees who seek profits over education and service. You may someday join the pantheon of higher education heroes that includes Jon Oberg, Clark Kerr, Robert Hutchins, etc.

  - TL

• If not cuomo, who?
• Posted by kgotthardt on March 1, 2008 at 10:45am EST

• The Federal Government and the Accreditors have let us down by selling us out to lenders marketing to vulnerable populations. Career Education was right up there, increasing its profits at the expense of students who did NOT get what they borrowed for.

  Sorry you are unemployed, Mr/Ms NY, but it will cost the country more when all of these students get out, drop out, or flunk out still carrying debt they cannot handle. Especially in the case of CEC, you cannot blame this on students. You can blame it on CEC and the lenders that sold off entire populations to the highest bidders.

  My advice to you is move to a reputable, ethical company. Given your experience, you will have many more job opportunities than the students I am referring to.