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Financial aid office to cease revenue sharing practices
Bailey Shiffler
Issue date: 4/5/07 Section: News
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Under pressure from the New York attorney general, TCU plans to end its revenue sharing partnership with Education Finance Partners, a university administrator said Wednesday.
Mike Scott, director of scholarships and financial aid, said he stands by the integrity of the revenue sharing program but understands the potential for abuse, and therefore, is willing to end the program at Attorney General Andrew Cuomo's request.
In late March, Cuomo sent schools across the nation a code of conduct that outlines regulations for financial aid departments and their lending practices.
Scott said he has not yet signed the code of conduct but intends to in the near future.
The code of conduct prohibits revenue sharing, a system in which lending companies pay schools a percentage of the profit they receive when a student begins to pay back a loan.
An April 2 press release from the attorney general's office referred to revenue sharing as a potential conflict of interest.
Scott said this is one of the only areas in which TCU will be affected by signing the code of conduct because the university is already in compliance with most of the other regulations proposed.
The code of conduct also requires schools to include strict disclosure standards for how lenders are chosen to be on preferred lender lists.
Scott said the financial aid department is working on a statement to include on their list of preferred lenders.
He said they have a rigorous selection process for preferred lenders including investigation into customer service practices, interest rates, buyer benefits and student approval rates.
Despite the recent publicity surrounding financial aid practices, Scott said he has not received any calls from concerned students or parents.
Lauren Jones, a junior supply chain management and marketing major, said the financial aid office was helpful when she was looking into applying for grants and loans.
Mike Scott, director of scholarships and financial aid, said he stands by the integrity of the revenue sharing program but understands the potential for abuse, and therefore, is willing to end the program at Attorney General Andrew Cuomo's request.
In late March, Cuomo sent schools across the nation a code of conduct that outlines regulations for financial aid departments and their lending practices.
Scott said he has not yet signed the code of conduct but intends to in the near future.
The code of conduct prohibits revenue sharing, a system in which lending companies pay schools a percentage of the profit they receive when a student begins to pay back a loan.
An April 2 press release from the attorney general's office referred to revenue sharing as a potential conflict of interest.
Scott said this is one of the only areas in which TCU will be affected by signing the code of conduct because the university is already in compliance with most of the other regulations proposed.
The code of conduct also requires schools to include strict disclosure standards for how lenders are chosen to be on preferred lender lists.
Scott said the financial aid department is working on a statement to include on their list of preferred lenders.
He said they have a rigorous selection process for preferred lenders including investigation into customer service practices, interest rates, buyer benefits and student approval rates.
Despite the recent publicity surrounding financial aid practices, Scott said he has not received any calls from concerned students or parents.
Lauren Jones, a junior supply chain management and marketing major, said the financial aid office was helpful when she was looking into applying for grants and loans.
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