Spring Break
Papadakis responds to Cuomo
Noah Cohen
Issue date: 4/27/07 Section: News
- Page 1 of 1
President Constantine Papadakis has responded to New York Attorney Andrew Cuomo's notice of intent to sue the University with a letter defending the revenue reinvestment between Drexel and Education Finance Partners.
The letter said Drexel believes the revenue sharing agreement is legal and ethical according to an email from Tobey Oxholm, general counsel for the University.
Drexel has not released the content of letter and said it will wait for the Attorney General to review the letter before commenting further.
Arthur Harris, press secretary for Cuomo's office said that he could not confirm receiving any communication from Drexel. Harris said he could not comment on the specific communications between the Attorney General and the University.
While Drexel and the New York Attorney General continue to face off over the student loan issue, Attorney General Andrew Cuomo has taken his case to Capital Hill.
Cuomo testified before the House Committee on Education and Labor April 25 about the loan probe. Cuomo never named Drexel University or another other institution during his testimony.
"The student loan industry has swelled to become a greater than $85 billion per year industry." Cuomo told the committee.
Cuomo called the revenue sharing agreements between Universities and lenders "the most egregious practice" discovered by his investigation.
"My office will continue to pursue lenders, schools and other players in the student loan industry that fail to put student interests first." Cuomo said in his testimony.
A statement from Drexel said, "We are confident that our agreement with EFP serves our students' best interests"
The University maintains that all of the funds received from EFP go to student scholarships.
According to the University all funding from EFP was placed in a "restricted account" to be used solely for scholarships.
"We don't think the use of the money matters," said Harris.
University officials said student financial records are confidential and cannot be released.
The timing of Cuomo's "intent to sue" letter, which was sent to The Triangle April 19, is still a disputed issue.
The University has said that they first learned of the Attorney General's notice from The Triangle. The Attorney General's office disputes this claim but did not comment further.
The letter said Drexel believes the revenue sharing agreement is legal and ethical according to an email from Tobey Oxholm, general counsel for the University.
Drexel has not released the content of letter and said it will wait for the Attorney General to review the letter before commenting further.
Arthur Harris, press secretary for Cuomo's office said that he could not confirm receiving any communication from Drexel. Harris said he could not comment on the specific communications between the Attorney General and the University.
While Drexel and the New York Attorney General continue to face off over the student loan issue, Attorney General Andrew Cuomo has taken his case to Capital Hill.
Cuomo testified before the House Committee on Education and Labor April 25 about the loan probe. Cuomo never named Drexel University or another other institution during his testimony.
"The student loan industry has swelled to become a greater than $85 billion per year industry." Cuomo told the committee.
Cuomo called the revenue sharing agreements between Universities and lenders "the most egregious practice" discovered by his investigation.
"My office will continue to pursue lenders, schools and other players in the student loan industry that fail to put student interests first." Cuomo said in his testimony.
A statement from Drexel said, "We are confident that our agreement with EFP serves our students' best interests"
The University maintains that all of the funds received from EFP go to student scholarships.
According to the University all funding from EFP was placed in a "restricted account" to be used solely for scholarships.
"We don't think the use of the money matters," said Harris.
University officials said student financial records are confidential and cannot be released.
The timing of Cuomo's "intent to sue" letter, which was sent to The Triangle April 19, is still a disputed issue.
The University has said that they first learned of the Attorney General's notice from The Triangle. The Attorney General's office disputes this claim but did not comment further.
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