Considering the recent brouhaha over FAO-lender relationships, there’s been much talk about direct-to-consumer lending as an alternative to going through the financial aid office. But according to the Baltimore Sun (“Beware aggressive marketing of student loans,” August 17, 2007), removing the financial aid office from the equation will leave students vulnerable to deceptive marketing.

Since 2001, the Federal Trade Commission has received roughly 600 complaints about direct-to-consumer student loan lenders. The complaints include lenders giving misleading information such as a “student loan tax” and masquerading as government agencies. Not to mention the fine print that comes with loans, which is cryptic enough to throw even the most detail-oriented borrowers.

Thanks to these shady tactics, the article calls for an objective (and knowledgeable) third party to help steer students in the right direction.