Attorney general plans to sue University in loan scandal
Noah Cohen
Issue date: 4/20/07 Section: News
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.
While Drexel maintains that the money gained from the relationship with EFP was used for legitimate purposes, EFP has settled with the Attorney General.
"Education Finance Partners will not enter new revenue reinvestment agreements with colleges and universities," said a statement released April 16 from the lender.
EFP also announced they will donate $2.5 million to a new fund formed by Cuomo's office to help educate students about the student loan industry.
Other schools have settled with Cuomo's office however Drexel has not done so.
"Schools absolutely should" settle said Cuomo spokesman Arthur Harris in an April 6 interview.
Drexel was never formally asked to settle according Toby Oxholm, general counsel for the University.
Harris said he could not comment on the specifics of communications between Cuomo's office and the University.
"We first received a letter in February and responded immediately with full disclosure of our current business practices regarding student loans." Said the University's statement.
The letter of intent to sue gives Drexel five business days to respond.
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.
While Drexel maintains that the money gained from the relationship with EFP was used for legitimate purposes, EFP has settled with the Attorney General.
"Education Finance Partners will not enter new revenue reinvestment agreements with colleges and universities," said a statement released April 16 from the lender.
EFP also announced they will donate $2.5 million to a new fund formed by Cuomo's office to help educate students about the student loan industry.
Other schools have settled with Cuomo's office however Drexel has not done so.
"Schools absolutely should" settle said Cuomo spokesman Arthur Harris in an April 6 interview.
Drexel was never formally asked to settle according Toby Oxholm, general counsel for the University.
Harris said he could not comment on the specifics of communications between Cuomo's office and the University.
"We first received a letter in February and responded immediately with full disclosure of our current business practices regarding student loans." Said the University's statement.
The letter of intent to sue gives Drexel five business days to respond.
Viewing Comments 1 - 4 of 4
Chris
posted 4/20/07 @ 7:14 AM EST
Big business (banks) owns the world. After all, corporations and gov't are merely quid-pro-quo whorehouses sold to the highest bidder. When the gov't needs illegal wire-taps, Verizon and Sprint allow them secret rooms to listen in on calls. (Continued…)
Patrick Stevens
posted 4/20/07 @ 11:37 AM EST
There is something here that is a very political looking that the Attorney General of Commonwealth of New York State, would pursue a law suit against Drexel University in Pennsylvania. (Continued…)
Gloria Silva
posted 4/23/07 @ 11:27 PM EST
Drexel forced me to get a loan. I know there is more students out there with the same problem. we should all post
Jen
posted 5/07/07 @ 11:24 AM EST
I WISH I knew a lawyer because I'd be suing Drexel right now.
I chose to consolidate my loans at the end of 2006. Inundated with mail from loan companies and from Drexel, I mistakenly filled 2 different consolidation applications. (Continued…)
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