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Added September 09, 2007
 kruvasan
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MYRICHUNCLE SHINES LIGHT ON PREFERRED LENDER LISTS AND OTHER PRACTICES THAT MAY BE HARMFUL TO STUDENTS SEEKING FINANCIAL AIDNew York, March 19, 2007 /PRNewswire/ â?? As the spring semester nears completion, many college-bound and college-enrolled students will begin receiving award notifications, alerting them of the financi moreMYRICHUNCLE SHINES LIGHT ON
PREFERRED LENDER LISTS AND
OTHER PRACTICES THAT MAY BE
HARMFUL TO STUDENTS SEEKING
FINANCIAL AIDNew York, March
19, 2007 /PRNewswire/ â?? As
the spring semester nears
completion, many college-bound
and college-enrolled students
will begin receiving award
notifications, alerting them
of the financial aid they have
secured for the 2006-2007
school year. MyRichUncle has
and continues to put forth a
message to students and
parents to be informed
consumers and to ask questions
about the various practices
that can lead student loan
borrowers to pay more than
they should.Recently,
MyRichUncle President and
Co-founder, Raza Khan, spoke
on a panel, 'Ethics in Student
Lending,' at the Consumer
Bankers Association Student
Lending Conference in
Washington, DC. Khan's
presentation scrutinized the
questionable practices rampant
in the student loan industry,
including incentive-based
agreements between some
financial aid offices and
private lenders that are
formed at the expense of the
borrower. Preferred lender
lists that financial aid
offices generate do not always
include lenders with lowest
cost loan options and can be
often interpreted as the only
financial aid options
available at a school. This is
untrue, severely limits
students' loan choices and may
lead to higher levels of
student loan debt.In Fall
2006, a recognizable shift in
the student loan industry was
felt with increased media
coverage of many of the
practices that MyRichUncle
brought to light. In addition,
there has been greater
attention on the development
of legislation and regulation
surrounding certain practices,
and PLLs, in particular.The
issue reached a significant
milestone in February 2007,
when U.S. Senators Edward M.
Kennedy (D-MA) and Richard J.
Durbin (D-IL) introduced the
'Student Loan Sunshine Act,'
which aims to protect students
and parents from exploitation
by private lenders and lenders
who offer gifts to colleges as
a way to secure loan business.
In introducing the Sunshine
Act, Kennedy cited it as a
response to reports regarding
questionable tactics some
lenders are using to increase
private loan volume.'The
student loan industry is
broken. Over the past few
months, we have seen steps
taken to enhance the scrutiny
of practices between lenders
and financial aid offices,
particularly around preferred
lender lists,' said Khan. 'The
true repair of this industry
will require more
accountability as well as
enforcement and modification
of state and federal
laws.'According to the College
Board, nearly $69 billion in
federal loans were issued in
the 2005-06 school year. The
total volume of private
student loans has grown at an
average rate of 27 percent per
year since 2001, and now
totals $17.3 billion, or 20
percent of all student loan
volume.About MyRichUncleFrom
its inception in 2000,
MyRichUncle has been at the
forefront of innovation for
education finance, most
recently focusing on the
growth market of student
loans. Since May of 2005,
MyRichUncle has originated
more than $100 million private
and federal student loans
using its breakthrough
underwriting platforms and
innovative technology to
deliver competitively priced
products and services to
borrowers. In May 2006, the
Company launched
Preprimeâ?¢, the first and
only student loan that allows
students to qualify for loans
based on individual merit,
rather than credit history
alone. In June 2006,
MyRichUncle launched its
Federal student loans with
upfront interest rate
reductions at repayment.
Dedicated to reshaping an
industry that doesn't function
in the best interests of the
students, founders Vishal Garg
and Raza Khan and their team
are committed to delivering
the most innovative solutions
for their customers.
MyRichUncle is effecting
change in the student loan
industry by empowering
students to ask tough
questions that lead to greater
understanding of the serious
nature of debt and the choices
they make about funding
education. The Company and its
founders have been recognized
by Fast Company's Fast 50
(2006) and listed among
BusinessWeek.com's Tech Best
Young Entrepreneurs (2006).
For more information, visit
http://www.myrichuncle.com.
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