The Triangle

Issue date: 4/13/07 Section: News

Letter from Attorney General sent to University

New York Attorney General Andrew Cuomo announced April 19 his intent to sue Drexel University for its relationship with the student loan provider, Education Finance Partners. Drexel is the first school that has been threatened with legal action.

"The agreements provided in substance, that Drexel would promote EFP's private loan program and in exchange would receive a portion of loans Drexel students placed with EFP," read a letter sent from the Attorney General's office to Drexel's General Counsel Toby Oxholm.

Since Cuomo's office initially named the University as one of the many schools receiving "kickbacks" March 22, Drexel has not taken any action.

"This office has been clear to schools: settle or we will commence litigation," Cuomo said in a statement.

Officials at the University's Office of the General counsel had not received the letter at the time of this writing.

The letter says, "Drexel has also repeatedly and persistently engaged in misleading and deceptive business practices and false advertising."

The University allowed EFP to use "Drexel's name, logo, colors and mascot in EFP's promotional materials," according the Attorney General's letter.

The letter of intent to sue gives Drexel five business days to respond.

Arthur Harris, spokesman for the Attorney General said that the letter was sent to Oxholm's office this afternoon.

Calls from The Triangle to the General Counsel's Office were referred to University Relations.

At the time of publication, the University had not released a statement about the issue.

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