New York Plans to Sue Drexel U. in Loans Inquiry

<p>NY Times: Andrew Cuomo, New York’s attorney general, intends to sue Drexel University for deceptive business practices. This is the first time Cuomo has singled out a university for a lawsuit in hisinvestigation of the college loan industry. Settlements have been reached with 12 other institutions that all agree to end such practices. </p>

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Under the settlements, the colleges agreed to a code of conduct governing relations with lenders, and in most cases have agreed to repay money to students....</p>

<p>I call this opening another front,” Mr. Cuomo said in an interview. “Drexel participated in revenue-sharing, which I consider to be the most egregious activity that we’ve found at any institution, and they did it to one of the greatest extents in the country, meaning they received more money back.</p>

<p>“Also, they refused to settle,” he said....

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<p>According to Drexel’s vice president for university relations, Philip Terranova, Drexel University will defend its position in this matter because the allegations "are without foundation in law or in fact.”</p>

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“We have carefully reviewed our practices regarding student loans, and we are satisfied that there is no conflict of interest,” Mr. Terranova said. He said that the university had “responded immediately with full disclosure” of its loan practices after receiving a letter from Mr. Cuomo in February....

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<p>According to Mr. Terranova, Mr. Cuomo’s tactics raise “troubling questions".</p>

<p><a href="http://www.nytimes.com/2007/04/20/education/20loans.html?_r=1&oref=slogin%5B/url%5D"&gt;http://www.nytimes.com/2007/04/20/education/20loans.html?_r=1&oref=slogin&lt;/a&gt;&lt;/p>

<p>From the Philadelphia Inquirer: "Drexel vows to fight Cuomo over student loans".</p>

<p><a href="http://www.philly.com/inquirer/breaking/business_breaking/20070420_Drexel_vows_to_fight_Cuomo_over_student_loans.html%5B/url%5D"&gt;http://www.philly.com/inquirer/breaking/business_breaking/20070420_Drexel_vows_to_fight_Cuomo_over_student_loans.html&lt;/a&gt;&lt;/p>

<p>"Colleges Settle in Student Loan Probe":</p>

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"This investigation is a two front battle: lenders and schools," Cuomo said. "We have proceeded against lenders and now we are proceeding against schools. There is no reason for a school not to adopt the Code of Conduct," Cuomo said. "This office has been clear to schools: settle or we will commence litigation. Either way we will get justice for students."....</p>

<p>Several lenders and colleges and universities have already settled lawsuits and adopted Cuomo's reforms, which are now part of a bill that could become the first state law on the issue in the nation.

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<p><a href="http://www.townhall.com/News/NewsArticle.aspx?contentGUID=bea96cab-3a85-450b-9ce6-fafc7c1646be&page=2%5B/url%5D"&gt;http://www.townhall.com/News/NewsArticle.aspx?contentGUID=bea96cab-3a85-450b-9ce6-fafc7c1646be&page=2&lt;/a&gt;&lt;/p>

<p>"Drexel, Capella settle with NY attorney general"</p>

<p><a href="http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2007-05-15T201852Z_01_N15439358_RTRIDST_0_STUDENTLOANS-CAPELLA-CUOMO.XML%5B/url%5D"&gt;http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2007-05-15T201852Z_01_N15439358_RTRIDST_0_STUDENTLOANS-CAPELLA-CUOMO.XML&lt;/a&gt;&lt;/p>

<p>"Drexel to Cuomo: Um, Never Mind"</p>

<p><a href="http://www.insidehighered.com/news/2007/05/16/drexel%5B/url%5D"&gt;http://www.insidehighered.com/news/2007/05/16/drexel&lt;/a&gt;&lt;/p>

<p>wow! smh glad im not going any more</p>