- Personal Finance»
- Paying for College
Crook Alert--Columbia and Johns Hopkins Fire Student Aid Directors for Conflicts of Interest
Columbia & Johns Hopkins Fire Student Aid Directors
As a result of an investigation by New York attorney general, Andrew Cuomo into the student loan industry, Columbia and Johns Hopkins have fired their student financial aid directors.
Columbia University dismissits financial aid director yesterday after the release of documents showing he avidly promoted a student loan company in which he had a financial stake--even sending letters to parents and alumni on three occasions extolling the lender.
Officials working with New York's attorney general, Andrew M. Cuomo, who is investigating the student loan industry, said the email messages and other documents that Columbia turned over in response to a subpoena were evidence that the university had failed to supervise its financial aid proram which was led by the director, David Charlow.
Mr. Cuomo's office called on Columbia's president, Lee Bollinger, to "immediately overhaul the operation." In further fallout from Mr. Cuomo's investigation, Johns Hopkins University announced the resignation of its Long-time financial aid cirector, Ellen Frishberg, who had received about $65,000 in consulting fees and tuition payments from the same student loan company Student Loan Xpress. Here's a link to Karen W. Arenson's article in the NY Times 5-22-07: