Big Success in this Session

Special Blog Guest Column by Senator Don McEachin

Providing a college education for a child who wishes to attend is one of the greatest opportunities our society can provide. Graduating from a college or university not only gives children more choices and greater earning power, but also creates better educated leaders to take our nation and our communities through the next century. Unfortunately, higher education is expensive. Even at our state schools here in Virginia, excellent academic institutions and some of the top bargains in the nation, a four year degree will probably cost well in excess of $50,000 dollars. Not surprisingly, many students and their families need financial aid and want to take advantage of student loan programs.

Furthermore, during the last decade, the cost of tuition has skyrocketed, forcing students to borrow ever larger sums. Unfortunately, over the same period, interest rates have also escalated drastically, compounding the burden on families.

Over the past year, I have been particularly disheartened to hear of the unethical and irregular behavior engaged in by some of the student loan corporations. Contrary to what many people think, many student loan programs are for profit corporations. In their eagerness to earn dollars, some unsettling practices have emerged. One of the largest, if not the largest, student loan corporation is Sallie Mae which has been in the news recently because of some of its alleged very questionable practices in its search for increasing profit.

Some schools of higher education have reportedly entered into a relationship with Sallie Mae, where the corporation planted unidentified employees inside school financial aid offices. They also allegedly wined and dined university financial aid officers to further encourage them to entice students to borrow from Sallie Mae.

Because I believe that the opportunity to get a college degree is very critical and because I was so discouraged and dismayed by these egregious lending practices, Senator Chap Petersen and I introduced a bill this year to protect our students and their families. This bill requires institutions of higher education to develop procedures about disclosing financial aid policies and report this information on an annual basis to the State Council of Higher Education for oversight. The information in the disclosure must include the status of any private lenders being used by that school, the criteria that determine which lenders, if any, are recommended to students by the university and explicit information that students can actually borrow from any lender of their choice. Finally, this bill forbids any college or university from having an exclusive relationship with a lender and also prohibits employees of the school from accepting gifts from lenders.

This is a critical first step in protecting our children and their families. While it is never easy to borrow money and to know that a student may be incurring years of debt repayment, we must at least do what we can to make certain that the student and his or her family are able to make informed knowledgeable choices.

Chap and I are pleased to announce that this bill now has passed both the House and the Senate and awaits the Governor’s signature.

I would like to take this opportunity to thank Chap for working with me so that, together, we could pass this important legislation.

Comments

[PM]

Thank you for working on this student aid issue, Senator. I could not have gone to college without aid and loans. Thankfully, in my day we had National Student Defense Loans, which had low interest payments.

[Not Harry F. Byrd, Sr.]

Wow. Its interesting that we go from JMDD and Benny Lambert who both earned thousands serving on Sallie Mae's Board of Directors to two senators from the same districts looking to hold the company accountable for its unethical practices.

[novamiddleman]

"explicit information that students can actually borrow from any lender of their choice."

Wow thank you legislature for telling us we can actually think for ourselves who would have thought

What about the higher education funding cuts that Kaine and other Ds are pushing

The bill does have some good points

"this bill forbids any college or university from having an exclusive relationship with a lender and also prohibits employees of the school from accepting gifts from lenders"

but to pretend this is the best thing since sliced bread is ridiculous

[dems4dems]

No, Nova, not the best thing since sliced bread but a step in the right direction and a big improvement. College students don't have the options the rest of us do.

[Not Don McEachin]

I'm a college student and I have choices, dems4dems. It's called fiscal responsibility. Instead of toking up in high school an buying tie-die Ts...some of you Dems should focus on getting a job and building your credit. My sophomore year of high school, I could recieve a $15000 loan from any lender of my choice...with no help from my parents. It's called fiscal responsibility.

And god knows that people probably didn't "wine and dine" McEachin to get this bill to pass. This is a country for profit and Dems have no place trying to limit that. Colleges do not require you lend with Sallie Mae...they suggest it because of their ease of customer service. I have loans with them...and they really are the easiest to work with about anything AND the fastest. So, this bill is highly unnecessary but will obviously be displayed as liberals helping the workin' man... yeeeeeeehaaaaaaa.

Signed,
FDems

[Not Don McEachin]

sophomore year of college*

[Not Don McEachin]

sophomore year of college*

[Not Ben]

If your writing abilities are any indicator, you probably go to a shitty college, NDM.

[Not Larry Sabato]

Not Don McEachin's comment might be the dumbest one ever on this blog, and that is saying something.

[Not Harry F. Byrd, Sr.]

That's interesting NDM.

Given that it's not legally possible for someone under 18 years old to actually sign legal paperwork without their parent's signature, then you were either:

A - An 18 year-old sophomore;
B - You have no idea what you're talking about; or
C - You're just busy spinning.

[Not Larry Sabato]

Given his writing ability, I'd go for 18 year old sophomore.

[proudvadem]

I think this bill is great! I have close to 35k in student loan debt, and
I never realized that the student loan program was a FOR profit entity. I wonder what went on behind the scenes at my University and think this bill is a great way to put some sunlight on a hazy practice.

Kudos to Senators McEachin and Petersen for this!

[ZB]

Not meaning to go off topic, but...

http://www.democraticcentral.com/showDiary.do;jsessionid=99C32D095783021925B60CEAF212CB74?diaryId=1636

Could it be that we have at last determined the identity of the now inactive blogger "Pastor John" ?

Don McEachin:
Do you know of anyone who'd be great for filling Alfred Dowe's seat on Roanoke's city council?

[Doug]

Next, work on passing HB12. 36% cap to APR on pay day loans. Cut that highly ammoral industry off at the knees.

[t]

McEachin once had great honor.

Years ago, he publically pro-claimed that he was a pro-life legislator and set up a table at one Richmond pro-family conference, where he appeared to be pro-life and pro-family.

What happened Don. Why did you change your principles?

[Not Don McEachin]

18 year old sophomore in college. Why else would I need college loans, you dumbasses? Do you think financial institutions would just do this out the goodness of their heart? No. Every company is at least a little bit FOR profit...whether to donate that profit, pay their overhead, or something else. You're an idiot if you can't realize that. It doesn't go on "behind the scenes" at your University. It's between you and the lender. What else do you think interest is for, you idiot? Did you actually go to college? Did you read the papers that you signed? Probably not...because your a fiscally irresponsible liberal idiot, most likly high as shit when you're posting this. Get a job and pay back your loans and stop complaining about it.

And NLS, it IS legally possible for a person under 18 to sign paperwork without their parent's signature. It's called EMANCIPATION. You over-zealous obviously misdirected idiot.

[Not Don McEachin]

And NLS...let's talk about spinning:

Practical Effect: HB3202 is out the window, everything in it is gone.

Call me crazy...but the SC just ruled NoVA's transportation authority unconstitutional...not the entire bill. And only 35 out of 140 legislators voted against that piece of legislation last session. Yeah. Way to go for spinning. You have an incredible blog...emphasis on the IN.

[dems4dems]

Hopefully this guy didn't go to my college.

[Doug in Mount Vernon]

Once again, NDM spouts off in a condescending and authoritarian tone about fiscal responsibility.

If there is ANY issue upon which conservatives and Republicans have lost any and ALL credibility of claiming any mantle of strength in reference to, it's on fiscal responsibility.

They have NO credibility. They only people who have displayed ANY accumen for this in the past 20 years have been Democrats, and often liberal ones, at that.

NDM, don't confuse free-lunch anti-taxism with fiscal responsibility. Wall Street bond raters agree with me.