Drexel named in loan scandal
University receives over $100,000 per year from "preferred lenders."
By: Noah Cohen
Issue date: 4/6/07 Section: News
Originally published: 4/6/07 at 8:45 PM EST
Last update: 4/7/07 at 8:09 PM EST
Originally published: 4/6/07 at 8:45 PM EST
Last update: 4/7/07 at 8:09 PM EST
A statement from EFP echoed the University's claim that the money is being used legitimately.
"The funds are directly provided to schools because the company believes that schools are in the best position to know how to serve students," read the statement.
EFP spokesman Kirk Copeland refused to comment further.
Funding returns to the University was not all the Attorney General cited.
"EFP engaged further in deceptive marketing practices by using schools' logo's, mascots and names in EFP promotional materials" said the Attorney General's statement.
The Attorney General released a recommended code of conduct for schools when dealing with student loans.
"Colleges must ensure that employees of lenders never identify themselves to students as employees of the colleges" stated the recommended code of conduct.
Employees of Educational Financial Services, not of the University, staff Drexel's prospective student financial aid call center.
EFS is a non-profit corporation that supplies "free college planning services, scholarships and low-cost loans" according to its website. EFS has not been named in the suit.
Executive Director Englund explained that EFS staffers are not University employees. "They are not employees of Drexel but they identify themselves as such," Englund said.
When The Triangle placed a call to Drexel University's prospective student financial aid help, a representative, when asked, said she was not an employee of the University, but of EFS. In addition a greeting message says "Thank you for calling the Ed Financial Drexel help line" immediately after dialing the number.
Englund said that Drexel has not received a settlement letter from the Attorney General's office and has no plans to return the money.
"At this point we have not been asked to do so," Englund said, "If we were approached the University would look at that."
Arthur Harris, spokesman for the Attorney General's office said, "schools absolutely should" return the money gained from relationships with the lending industry.
"The funds are directly provided to schools because the company believes that schools are in the best position to know how to serve students," read the statement.
EFP spokesman Kirk Copeland refused to comment further.
Funding returns to the University was not all the Attorney General cited.
"EFP engaged further in deceptive marketing practices by using schools' logo's, mascots and names in EFP promotional materials" said the Attorney General's statement.
The Attorney General released a recommended code of conduct for schools when dealing with student loans.
"Colleges must ensure that employees of lenders never identify themselves to students as employees of the colleges" stated the recommended code of conduct.
Employees of Educational Financial Services, not of the University, staff Drexel's prospective student financial aid call center.
EFS is a non-profit corporation that supplies "free college planning services, scholarships and low-cost loans" according to its website. EFS has not been named in the suit.
Executive Director Englund explained that EFS staffers are not University employees. "They are not employees of Drexel but they identify themselves as such," Englund said.
When The Triangle placed a call to Drexel University's prospective student financial aid help, a representative, when asked, said she was not an employee of the University, but of EFS. In addition a greeting message says "Thank you for calling the Ed Financial Drexel help line" immediately after dialing the number.
Englund said that Drexel has not received a settlement letter from the Attorney General's office and has no plans to return the money.
"At this point we have not been asked to do so," Englund said, "If we were approached the University would look at that."
Arthur Harris, spokesman for the Attorney General's office said, "schools absolutely should" return the money gained from relationships with the lending industry.
