Banksters Inc.

from OurFuture.org:



Big Bank Fraud, This Time with Student Loans
By Armand Biroonak

October 20, 2009 - 12:35am ET

--------------------------------------------------------------------------------


Just when you thought that the dust had settled from the scandals of Wall Street (at least temporarily), details come out of another Ponzi scheme by the titans of banking, this time with student loans. According to recently released court documents, Citigroup, JP Morgan and the education finance company Nelnet are being sued by the federal government for fraud of nearly $280 million from their participation in the Department of Education’s Federal Family Education Loan program (FFEL). FFEL provides billions in annual bank subsidies to private lenders for making student loans –the same subsidies that the student aid bill currently in Congress looks to abolish.

According to court filings:





Moreover, to rope in more borrowers to boost subsidy payouts, Nelnet deliberately misled consumers with false advertising, promising students could save thousands of dollars by consolidating their loans –even though FFEL prohibits private lenders from engaging in such practices.

Meanwhile, legislation that would end the system that Nelnet and other banks are profiting off of is in jeopardy of not passing in the Senate. The Student Aid and Fiscal Responsibility Act (SAFRA) would end the $87 billion worth of bank subsidies and move all student lending to the federal government. And even though the House passed the legislation, centrist Democrats such as Sens. Blanche Lincoln (Ark.), Mark Begich (Alaska) Ben Nelson (Nebraska), Tom Udall (New Mexico) vow to stand in the way, voicing opposition to the bill. ...........(more)

The complete piece is at: http://www.ourfuture.org/blog-entry/2009104319/big-bank-fraud-time-student-loans

Many of us have been saying that they have turned "student loans" into another corporate welfare program for years.