Obama gives “crony capitalism” a new meaning. First the auto industry, then “Green energy,” and the newest payoff is in the student loan industry with Obama crony Aspire Resources, Inc.
Obama made a big stink in 2009 about how evil the banks were, not caring about the students who were borrowing money from them, and, with an unconstitutional power grab, took their business away.
On May 21, 2012, I received an e-mail from Direct Loan (the fed’s entity for administering loans), informing me that the federal government would no longer be handling student loans, turning it over to Aspire Resources, Inc.
With a reading of an interview with Steve McCullough, Aspire Resources president, conducted on May 2, 2012, it looks like what Aspire Resources boils down to is a debt collection agency for college graduate deadbeats. They are paid “on a sliding scale,” depending on how well they “handle” getting the government’s money back. Kind of sounds like what a loan shark does.
In an odd twist, I remembered the hidden program Obama had buried in the 2011 deficit reduction plan, whereby he gave debt collectors access to student loan cell phone numbers. Coincidence? There are no coincidences in the Obama Administration.
With a little digging, I found that Iowa Student Loans (ISL), the non-profit arm of Aspire Resources also headed by Steve McCullough at the time, was mired in scandal in 2008. From a 2009 article in the Higher Education Watch:
“A report released last fall by Iowa’s Attorney General Tom Miller demonstrates how ISL officials carried out this strategy. According to the report, the agency’s leaders pursued a concerted strategy to steer students in the state to its most expensive private student loan products. Among other things, the AG found that ISL had provided kickbacks to colleges that recommended its private “Iowa Partnership Loans” to their students; gave financial rewards to their employees based on the number of private loan borrowers they secured; paid bonuses to staff members at the college access centers they managed based on the number of borrowers they brought in; falsely advertised its private loan products as the “lowest cost” options available; and routinely failed to advise students and their families to exhaust their federal student loan eligibility before taking out private loans.”
Another bailout debacle, this time with student loans? Maybe Congress can uncover Obama’s corruption before we flush billions of dollars down the drain again.