Student Loan Investigations Continue
April 5th, 2007
The New York Times is reporting today on more dirty laundry discovered by Andrew Cuomo, the state attorney general for New York. As mentioned in our editorial from last week, investigators had discovered a number of public and private institutions contracting their financial aid services out to private lending corporations. With today's developments, we now have some specific examples of individuals and schools being charged in this emerging scandal. Apparently, officials from Columbia University, the University of Texas, and the University of Southern California, among others, have profited by investing in a company called Student Loan Xpress. Not long after these investments took place, Student Loan Xpress then appears to have become a preferred lender at these institutions.
The money trail is not only limited to the schools themselves, however. In the case of David Charlow, chief director of financial aid at Columbia, he made over $100,000 through sales of Student Loan Xpress stock. The investigation is ongoing, and more can be read below and in future editorials. You can be certain we here at College Loan Cure will continue to keep you updated on the situation as it develops.