Drexel says loan firm's money went to students

0 Comments | Philadelphia Inquirer, The, April, 2007 | by Linda Loyd Inquirer Staff Writer

The director of Drexel University's financial aid office said yesterday that more than $100,000 that the university received from a student-loan firm was used for student scholarships.

New York Attorney General Andrew Cuomo's widening probe into the college loan industry has cited questionable practices by three Philadelphia-area institutions - Drexel, Widener University and the University of Pennsylvania.

On March 22, he described the more than $100,000 paid by Education Finance Partners to Drexel as "kickbacks." He said his office would file a lawsuit against Education Finance Partners for what he called "deceptive practices."

Under Drexel's agreement with Education Finance Partners, dated April 1, 2006,...

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