NEW YORK - Student loan companies are under fire for reportedly offering bonuses, iPods and free trips to U.S. college and university administrators.

The New York Times said one student loan company earlier this year invited administrators and their spouses to attend a free education conference in the Caribbean.

Data from the College Board shows that college students took out nearly $13.8 billion in private loans last year, more than 10 times the amount borrowed a decade ago. The Times said university financial aid offices often compile very short lists of “preferred” lenders and students rarely comparison shop.

While it is illegal for lenders to use inducements to get applicants for federally backed student loans, the law does not apply to private loans, the Times said.

“I don’t think you have to be a bona fide ethicist to recognize the potential for a conflict of interest,” L. Katharine Harrington, dean of admissions and financial aid at the University of Southern California, told the newspaper. Harrington said she has no financial ties to lenders.

This entry was posted on Friday, October 27th, 2006 at 9:42 pm and is filed under College Loans, Education, Student Loan. Tags: College, Education, Financial Aid, Loans, Student, Student Loan. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.