Columbia Fires Financial Aid Director for Conflict of Interest

<p>Columbia University fires financial aid director
POSTED: 9:28 p.m. EDT, May 22, 2007
Story Highlights
• Columbia spokesman: Charlow violated university policy on conflicts of interest
• N.Y. attorney general probing abuses in $85 billion U.S. student loan industry
• Charlow is the latest aid official to step down amid the investigation </p>

<p>NEW YORK (Reuters) -- Columbia University said Tuesday it has dismissed its director of financial aid after released documents showed he promoted a student loan company in which he had a financial stake.</p>

<p>The aid official, David Charlow, was fired amid an investigation by New York Attorney General Andrew Cuomo, who is probing abuses in the $85 billion U.S. student loan industry.</p>

<p>Columbia said in a statement that it promptly brought information received about Charlow's relationship with former preferred lender Student Loan Xpress Inc. to Cuomo's attention last month....</p>

<p>Columbia spokesman Robert Hornsby said that "Charlow, a long-term and well regarded employee, abused a position of trust and violated the university policy on conflicts of interest."</p>

<p>New York-based Columbia placed Charlow on leave in April after regulatory filings showed he sold shares in Education Lending Group, the former parent of Student Loan Xpress, for a gain of more than $100,000. Student Loan Xpress is now a unit of CIT Group Inc.</p>

<p>One of the lower circles of hell should be reserved for those who prey on students in this way.</p>

<p>Same thing at Johns Hopkins: </p>

<p><a href="http://www.baltimoresun.com/news/education/bal-te.md.hopkins22may22,0,7321920.story?coll=bal-home-headlines%5B/url%5D"&gt;http://www.baltimoresun.com/news/education/bal-te.md.hopkins22may22,0,7321920.story?coll=bal-home-headlines&lt;/a&gt;&lt;/p>

<p>And at UT Austin:</p>

<p><a href="http://www.insidehighered.com/news/2007/05/15/texas%5B/url%5D"&gt;http://www.insidehighered.com/news/2007/05/15/texas&lt;/a&gt;&lt;/p>

<p>There will be more, no doubt.</p>

<p>I wonder if he was a 'cheater' when he was in high school/college (see Severna thread). Integrity should be the name of the game in school, and the business world. Hope more colleges scrutinize their financial aid offices.</p>

<p>Training more even as we speak.</p>

<p><a href="http://www.cnn.com/2007/EDUCATION/05/22/cheating.students.ap/index.html?section=cnn_latest%5B/url%5D"&gt;http://www.cnn.com/2007/EDUCATION/05/22/cheating.students.ap/index.html?section=cnn_latest&lt;/a&gt;&lt;/p>