Loan to Learn's Caribbean Junket for College Officials Canceled

On Monday, Higher Ed Watch broke the story that a private student loan company, Loan to Learn, was offering financial aid officers an all-expense-paid, four day trip to the Caribbean this coming February. Yesterday, the company canceled the more than $3,000 per participant trip after a flurry of criticism here, here, and here.

A little birdie told The New York Times about Loan to Learn's Caribbean getaway where college officials were to be educated about the company's products like it's private student loans with interest rates that reach as high as 16% per year on top of a start up fee of up to 10%. On Tuesday, the New York Times put the story on its front page.

Acording to Inside Higher Ed, Loan to Learn has now canceled their planned Education Summit in the West Indies Nevis. Apparently, some financial aid officers pulled out of the trip this week and not many new people were signing up.

Let's not kid ourselves, had it not been for the bad press, this year's Loan to Learn conference in the Caribbean would have gone off just as last year's conference at Pebble Beach did. And as a result, at least some financial aid officers would have steered students to Loan to Learn's high interest rate, high fee products as a result. Not many, but some.

One's moral fiber is tested when folks aren't looking. Higher Ed Watch does what it can, but in the high stakes business of student loans, there's only so much watching we and others can do. It's up to Congress and professional associations like NASFAA, the National Association of Student Financial Aid Administrators, to ban gifts large and small to college officials.

Congress and its staff have a gift ban. Shouldn't colleges as well?