August 11, 2007
Government asks schools to abide by rules that aren’t approved yet
I gotta say, this one made me chuckle. While the intentions were good, asking someone to abide by rules that haven’t even been approved yet, let alone gone into force is a wee bit on the silly side.
Criticized for lax oversight of student loans, the federal Education Department is asking universities and lenders to abide voluntarily by its proposed rules banning certain marketing practices by loan companies, before the rules take effect next year.
The department’s move was announced yesterday by Education Secretary Margaret Spellings in a conference call with reporters. Ms. Spellings also said the department could not enforce the rules before their effective date, once the federal regulatory review process was complete.
In a letter sent yesterday to lenders and universities, she wrote, “I urge you to act now to assure students and parents that we have their best interests at heart in providing competitive student loans.”
Read the whole article here.