https://www.npr.org/2019/02/14/694477547/federal-watchdog-issues-scathing-report-on-ed-departments-handling-of-student-lo
This article was published on February 14, 2019 by Cory Turner.
A new report from the U.S. Department of Education's Office of Inspector General says the department's student loan unit failed to supervise the companies it pays to manage the nation's trillion-dollar portfolio of federal student loans. It further tells that the Department of Education's office of Federal Student Aid rarely penalizes companies that are caught breaking the rules. Because of this poor oversight, these “loan services” can hurt borrowers and take government dollars that should have been refunded because services weren’t meeting federal standards.
Student loans are very important to us because they're used to pay for our college debts and knowing that this service is corrupt is appalling. Because of this lack of supervision, students are put more in risk for being buried in dept.
Prior to 1944, the federal government offered no loan assistance to students. However the GI bill, passed in 1944, gave veterans federal loan assistance so they could get an education after dedicating themselves to serving the country in WW2. In 1957, the first federal student loans plan to apply to all citizens, the National Defense Education Act, to make college more accessible for the middle class.
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