Spring Break
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
Harris declined to comment on any specific discussions between the University and the Attorney General's office.
When asked if the Attorney General would sue specific schools Harris said, "Potentially but we have not taken that step".
Follow up calls to Harris were not returned at the time of this writing.
Although the University believes that it can best manage the use of the funds for scholarships the University of Pennsylvania has taken a different approach.
"Penn will modify its arrangements with Citibank to ensure that borrowers are reimbursed for their share of the fee, and Penn will no longer accept fees from Citibank in connection with this program" according to a statement issued by Penn.
Another element of the investigation was personal gifts given to members of school administration.
Toby Oxholm, General Counsel for the University, said no Drexel staff received gifts from lenders.
"Absolutely not, we have had a conflict of interest policy for years," he said.
Englund also said she was never offered gifts and "would contact appropriate legal officials at the University" if she was approached by lenders.
Drexel selected EFP after gathering proposals from several other vendors. EFP was selected because it included the most options for students.
"We want the best rates, the best customer service, electronic processing" said Englund on why EFP was selected as the "preferred lender."
She added that EFP was able to provide loans for international students with "less then stellar" credit.
While the Attorney General has subpoenaed other schools including Columbia University, Drexel turned over all information voluntarily.
"We got a letter in March and we gave them all the information" Oxholm said.
Since then the University has not received any further communication from the Attorney General.
When asked if the Attorney General would sue specific schools Harris said, "Potentially but we have not taken that step".
Follow up calls to Harris were not returned at the time of this writing.
Although the University believes that it can best manage the use of the funds for scholarships the University of Pennsylvania has taken a different approach.
"Penn will modify its arrangements with Citibank to ensure that borrowers are reimbursed for their share of the fee, and Penn will no longer accept fees from Citibank in connection with this program" according to a statement issued by Penn.
Another element of the investigation was personal gifts given to members of school administration.
Toby Oxholm, General Counsel for the University, said no Drexel staff received gifts from lenders.
"Absolutely not, we have had a conflict of interest policy for years," he said.
Englund also said she was never offered gifts and "would contact appropriate legal officials at the University" if she was approached by lenders.
Drexel selected EFP after gathering proposals from several other vendors. EFP was selected because it included the most options for students.
"We want the best rates, the best customer service, electronic processing" said Englund on why EFP was selected as the "preferred lender."
She added that EFP was able to provide loans for international students with "less then stellar" credit.
While the Attorney General has subpoenaed other schools including Columbia University, Drexel turned over all information voluntarily.
"We got a letter in March and we gave them all the information" Oxholm said.
Since then the University has not received any further communication from the Attorney General.
