 |
|
 |
|
|
|
 |
|
"Some college administrators seem so distracted with fund raising, academic infighting, and community initiatives that they set up their emergency communications departments very poorly. Training is poor to nonexistent, secretaries are pressed into service with tremendous responsibilities for running 'notification systems' 24/7 and on weekends because no one else knows how to do it and the administration won’t pay for additional staff. Procedures are seat-of-the-pants and dependent on HIPPO (highest paid person’s opinion), except when something like Virginia Tech happens and there is some sort of scramble to do something different." --Donna
Most Colleges Avoid Risk Management, Report Says
Jill Biden Shines a Global Spotlight on American Community Colleges
Speaking at a Unesco conference in Paris, the vice president’s wife stressed the importance of two-year institutions to the nation’s educational goals.
Connecticut Public Colleges Lose 200 Professors to Early Retirement
Administrators are scrambling to plug holes in their course schedules for fall, with most expecting to do so by hiring more adjuncts or increasing class sizes.
U. of Georgia Paid 2 Fraternities $2.4-Million to Relocate, Contracts Show
The two were among five with houses on property where the university plans to build new academic facilities.
New Allegations in Admissions Controversy at U. of Illinois Suggest Ex-Provost Played a Role
Linda P.B. Katehi, the incoming chancellor of the University of California at Davis, has insisted she knew nothing of the admission of politically connected applicants at Illinois.
Sonoma State U. Foundation May Lose $350,000 on Loan to Former Board Member
The foundation will be forced to issue fewer scholarships in the 2010-11 academic year because of a diminished endowment, a university official said.
College Suspends Student for Working in Gay Pornography | 58
President Obama's Visit to Notre Dame Carries Barely a Hint of Controversy That Preceded It | 58
Drug Sting Nabs 21 Students at U. of Illinois | 57
Faculty Members and Union Protest Staff Layoffs at Temple U. as 'Cruel' | 57
North Dakota Board's Vote Puts 'Fighting Sioux' Mascot on Thinner Ice | 57
Athletics
Community Colleges
Government & Politics
Information Technology
International
Money & Management
Northern Illinois
Research & Books
Short Subjects
Students
The Faculty
Prior days' news: By date | Search
This week's print issue
Back issues: By date | Search
September 9, 2008
In Renewed Action, Cuomo Reaches Settlements With 7 More Lenders
Washington — New York’s attorney general, Andrew M. Cuomo, today announced settlement terms with seven more student-loan companies designed to halt their use of deceptive marketing practices.
The seven lenders — Campus Door, EduCap, GMAC Bank, Graduate Loan Associates, Nelnet, NextStudent, and Xanthus Financial Services — agreed as part of the settlement to pay a total of more than $1.4-million into a fund to help students navigate the financial-aid process.
The settlement commits the companies to stop employing a variety of deceptive marketing practices that Mr. Cuomo said they were using. The practices include mailing phony solicitations designed to look as if they came from the federal government, advertising interest rates that are not available to most borrowers, and paying students to sign up their friends.
The announcement marks a resumption of the settlement activity Mr. Cuomo pursued last year, when he persuaded dozens of colleges and lenders to sign similar codes of conduct and make millions of dollars of payments into his student-aid fund.
The investigations were instigated, at least in part, by MyRichUncle, a start-up loan company that fought for business by offering lower rates and publicizing questionable marketing tactics by its competitors. MyRichUncle also endorsed the code of conduct proposed by Mr. Cuomo after its president and co-founder, Raza Khan, provided the attorney general with suggestions on what should be included in it.
Despite its success in drawing attention to industry marketing tactics, MyRichUncle has fallen victim to problems in the overall economy, announcing last week that it no longer had enough money to originate new student loans.
Mr. Khan said today he hoped that recent improvements in the economy, including a drop in oil prices and the federal bailout of the mortgage-guarantor giants Fannie Mae and Freddie Mac, will help make more money available for student-loan companies. —Paul Basken
Posted on Tuesday September 9, 2008 | Permalink |Comments
Previous: Financial Literacy's Profile Rises on College Campuses
Next: U. of Wisconsin Economics Department Faces Growing Demand
And where is this money that has been collected by the AG? My estimate is that over 14.9 Million dollars has been collected and most of it sitting in interest bearing accounts within the State of NY. The funds were intended to help provide proper information to assist students and their parents with sound information on financing a post secondary education. To date not one penny has been made available by the AG for that purpose.
I would like to see the news media investigate why students are not being served by allowing non-profit associations access to those funds in order to serve those students, parents and school counselors.
— John View Sep 9, 03:43 PM #
Still waiting to see how these millions of dollars he’s collected to “help students navigate the financial aid process” is being spent. Does he actually believe that there have never been any such initiatives? There are already a million websites, HS financial aid nights, colleges holding workshops, College Goal Sunday, adult school classes, books, etc…and none of them cost millions of dollars.
And boo hoo, what sad news about his close friends at My Rich Uncle. I guess the ads falsely impugning the reputation of an entire profession wasn’t money well spent after all? That’s the best ecomony-related news I’ve heard in a long time.
— DS Sep 9, 03:47 PM #
It is important to note that this round of agreements is strictly about “direct-to-consumer” lending practices and has no connection to the earlier allegations about lenders and schools being inappropritely cozy.
— Richard Sep 9, 04:12 PM #
When he “persuaded” schools and lenders to sign code of conduct agreements, eh? Great choice of words. I’m not sure the schools and lenders would agree with that particular phrasing, though.
Another question I’d like to see Mr. Basken ask is why Mr. Cuomo is so intent on duplicating the efforts of the federal government? It seems the FTC has already looked into this and the code of conduct required under law will be better than 50 different state AGs designing their own.
— Scooter Sep 9, 05:12 PM #
Sheeesh who’s ripping who off right now…Who’s policing the police….I think Cuomo should be disbard for putting his own interest before the students….innocent people are now out of work and for what??? Cuz Salesman asked for Referals?? He the park bully and noone chalenging him….I wish someone would just sock him between the legs….maybe then he would get a clue….I hope your mom is proud of you Cuomo Cuz we starving student are not impressed with your actions…..What are you really going to with that money…..don’t you get a percentage of that money? Don’t all Lawyer get percentage of what they win? Tisk Tisk…
— J-Man Sep 9, 06:33 PM #
With the funds collected pursuant to his investigations, including the latest $1.4 million, Cuomo could have awarded EVERY victim he found over $1 million. If he wants to help students, why hasn’t he done this? Of course, I haven’t seen the list of the victims but I keep looking for it.
— Jack Sep 10, 07:55 AM #
Cuomo’s crusade has done more to harm students than to help.
The sub-prime loan crash and Cuomo on his witchhunt helped to create the perfect storm that caused many honest lenders to completely pull back all services including simple forms they provided for free.
Thanks to Coumo students are now finding money harder to secure with increased costs as colleges now bear the financial burden of additional materials and services.
The only thing that has increased is Cuomo’s ego and desire to drag more dollars into the State of New York. Students have ultimately lost ground as a result of his personal agenda. What he maybe intended as help has damaged the very people he said he vowed to assist. He needs to be held accountable for the collateral damage and the millions he’s collected.
— Stan Sep 10, 09:56 AM #