Unless you’ve been hiding under a rock (I need new colloquialisms), you know that The New York Times recently reported on student load fraud taking place at USC, UT, and Columbia. School officials were cashing in on offering “preferred lenders” in exchange for some kickback.

Here at LMU, the head opinion editor at the Loyolan recently offered her own experience in questionable student loan practices. LMU quickly responded with this post on the LMU homepage. I’ll give them the benefit of the doubt.

The student loan scandal, although it has only recently come to the forefront, seems to be cropping up in everyone’s backyards. Is your school under investigation? Have you had any experience with shady lenders?

Fordham and St. John’s have already settled. As always, be skeptical of “preferred lenders,” no matter how benevolent your school administration seems.

Footnote: I love self-promotion, so check out the new Portfolio.com, a blog/magazine that launched last Sunday. I’m writing for a semi-monthly section called “Dispatches from the Next Generation.” It looks like it will be a great resource for business on the edge. The inspiration for this post came from one if its recent articles: Student Loan Kickback Probe Expands [Portfolio.com]