Drexel may face suit over loans

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

Drexel University, which received more than $124,000 in commissions from a California lender accused of paying illegal kickbacks to schools, could become the first college to be sued in a nationwide probe into the $85 billion student-loan industry.

New York Attorney General Andrew M. Cuomo notified Drexel yesterday that he intends to sue the Philadelphia university over its revenue-sharing agreements with Education Finance Partners Inc.

Cuomo sent a "notice of intention to sue" to Drexel general counsel Carl "Tobey" Oxholm 3d saying that the university engaged in "unlawful and deceptive acts and practices" by promoting Education Finance Partners as its "sole preferred private loan provider." In return, the college...