The leader of a group that represents financial-aid administrators has denounced a lender’s advertising campaign that sharply questions the integrity of the group’s members.
Over the last couple of months, MyRichUncle, a student-loan company that markets federal and private student loans directly to borrowers rather than through financial-aid offices, has run advertisements in some major national newspapers accusing aid administrators of denying students access to the lowest-cost loans.
The company asserts that those officials often accept “kickbacks” and “payola” from lenders who wish to become the exclusive providers of loans on the administrators’ campuses, even if the companies don’t provide the best deals (The Chronicle, August 4).
The National Association of Student Financial Aid Administrators announced today that its president, Dallas Martin, had sent a letter last week to Raza Khan, the company’s president and founder, in which he expressed “strong objections” to the company’s ads.
“The focus of your marketing campaign implies that financial-aid administrators are unethical, uncaring about how they serve students, and engaged in activities detrimental to students seeking federal or private loans,” Mr. Martin wrote. “Needless to say, we strongly disagree with this all-inclusive, undocumented characterization.”




