A San Diego-based student loan company is under fire for allegedly paying university officials to push its services. KPBS reporter Ana Tintocalis has more.
Student Loan Xpress in Del Mar is the eighth largest federal student loan lender in the country. Executives say it’s their low-cost payment programs and consulting services that puts them at the top. But California Attorney General Jerry Brown thinks it’s something else. His office is looking into whether Student Loan Xpress gives financial aid administrators free stock options in exchange for pushing its services.
Bob Shireman is with the non-profit Project on Student Debt in Berkeley.
Shireman : There's a big difference in giving someone a 20-dollar dinner and 9, 10, 15-thousand dollars in stock. Getting stock has the potential really to cause a financial aid administrator to give advice that may not be in a student's best interest.
Two San Diego businessman founded Student Loan Express five years ago. The parent-company placed them on “administrative leave” last week pending another investigation in the matter.
Ana Tintocalis, KPBS News.
