| Many students get student loans each and every | | | | the power in the hands of the lender. |
| school year because these loans are the easiest way | | | | In addition to this, there is evidence that certain |
| for students to have the financial means to go to | | | | universities have been persuading students to apply |
| school. A student loan is very easy to be approved | | | | for loans through certain companies and have been |
| for and countless students are unaware of the risks | | | | getting kickbacks as a result. It is very easy for |
| involved with borrowing so much money, as it is | | | | those in the financial aid office to do this, as all they |
| really a major financial endeavor for such young | | | | have to do is recommend a company and a student |
| people. A bill was passed in 2005 that omitted | | | | will be very likely to visit that company first. In many |
| student loans from bankruptcy hearings. | | | | cases, these students would even sign up for loans |
| What this means is that a student loan cannot be | | | | with higher interest rates just because the school |
| wiped clean if a borrower files for bankruptcy. This | | | | recommended them. |
| was meant to create a risk free loan for the lender | | | | This is a highly illegal practice and is a major problem |
| but, unfortunately, these lenders kept interest rates | | | | within the student loan industry, as these students |
| very high after this bill was passed. This basically | | | | are usually very young and should not be making |
| provides no relief for the borrower and puts all of | | | | these major financial decisions on their own. |