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| News reported today about WESTERN steering loans to a preferred lender smells bad. The Financial Director should be fired. WESTERN got a kick back. What did he get?
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YIKES! ====> First the men's basketball debacle and now a "kickback" scandal involving student loans. What can go wrong next ?????
It's time for President Goldfarb to get the BROOM out and start doing some sweeping!
One WESTERN. All Leathernecks !!
Go Leathernecks !!
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Does anyone know if the local newspaper- or WESTERN newspaper- have done any investigative reporting on the student loan scandal? Have they even asked any questions or even had any articles regarding this?
This story will grow as more schools are "outed" each week.
I still believe the Dir. of Financial Aid should be let go. Surely there is a code of ethics in that profession.
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I have not seen any local stories on the Student Loan Program that has been in the national news lately. This is a story that would warrant some investigative work. Perhaps the Peoria Journal-Star or its sister publication, the Springfield State Journal-Register, will take the lead.
All I have seen is the official University Press Release from Darci Shinberger (as shown below):
WIU Updates Information On Student Lending Practices
Recent news media reports have documented student loan practices at Western Illinois University.
“We regret there are misperceptions about Western’s relationships with private lenders,” said Bill Bushaw, director of financial aid at Western.
According to Bushaw, the majority of loans to Western students are Stafford subsidized federal loans. In the current school year almost $36 million was loaned to WIU students through the Stafford program. An additional $9 million in loan funds were distributed through federal parent plus loans while $8 million was distributed to students through private loans.
“The goal of the Financial Aid Office is to serve students to the best of our ability. We always see that students maximize their federal benefits before processing a private loan application,” said Bushaw. “Western is cooperating with all interested parties to explain our procedures and policies regarding student loan programs and to clear up any misconceptions regarding these policies.”
Western received $4,800 from Nelnet during the 2006-2007 year based on an agreement between the University and the private loan provider. The agreement involved private loans only and did not involve Federal loans. The funds were deposited into a fund to create a scholarship endowment for WIU students. Nelnet provided the lowest interest rate of those companies listed on the University’s website.
The private loan market was the topic of a recent article by Julie Rawe at Time.com which documents the challenges students face when trying to fill the gap in funding between subsidized federal loans and college costs. The article reports on loan programs including federal proposals similar to the private lender agreement. See http://www.time.com/time/magazine/article/0,9171,1609801,00.html
The following information outlines the private lending programs available for WIU students. This information is designed to provide general guidance about Western loan programs and to respond to some of the questions that have been raised about relationships between commercial lenders and colleges and universities.
Q: Has Western ever entered into preferential lending agreements in the past with lenders other than Nelnet? Why wasn't this agreement disclosed before now?
A: No, Western had not entered into previous agreements. The funds are for the benefit of students and not at the expense of students. The agreement is a non-exclusive agreement, which means we will process loans from other available sources. There was no particular thought of telling students, if for no other reason than students might think that they should help other students by taking the Nelnet loan.
Q: Has Western always placed the money into a scholarship account or is this a new practice?
A: Yes, the funds have only gone into The Heritage Program, established in 2005. Information on the program may be found on the Financial Aid website (http://fa.wiu.edu/).
Q: Why did Western enter into a revenue-sharing agreement with this particular loan company?
A: We have been raising funds for the new scholarship program (The Heritage Program) to help students with need who have high academic qualifications. They offered to help us through this agreement.
Q: How did financial aid personnel present the Nelnet company to prospective student borrowers? Did Nelnet get more promotion/publicity when staff met with students to discuss loan options?
A: The Financial Aid office processes loans through any source. We point out to students not to borrow any more than is absolutely necessary. We do not market private loans. When asked for a private loan, we direct the student or parent to our website or to contact a lender. If our website is used, the student must go through a consumer information page. Then, the student must review each lender's benefits before making application. Incidentally, NelNet offered the most favorable interest rate to students, so that may explain why they have been more readily used than some other private lenders.
Q: How are students advised regarding government vs. private loans?
A: Students are always directed to federal government loan programs first; however, the government has not expanded its loan limits, so students may turn to private loans when the government loan funds are exhausted. Western's Financial Aid officers always ensure that students maximize the government loan opportunities available prior to students seeking private loans.
Q: How will WIU's financial aid practices change a result of the former Nelnet agreement?
A: We will still approach student aid practices with the same high degree of professionalism, integrity, and service to students as in the past. Our sole purpose is to help students and families to the best of our ability. We are interested in helping students be successful at Western Illinois University, and we try to help them get the aid they need in the fashion that will be the least burdensome after graduation.
Update April 20, 2007
Copy By: Darcie Shinberger, University Relations
Phone: (309) 298-1993 * Fax: (309) 298-1606
One WESTERN. All Leathernecks !!
Go Leathernecks !!
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Last Login: 8/26/2008 9:01:34 AM
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| Did WESTERN receive a subpoena regarding the student loan investigation? A story today in USA Today indicated subpoenas were widened, and mentioned WESTERN in a blurb of having received $4,800.00 " return" from the lending company for steering students to them. I don't care what spin WESTERN puts on this, it's not ethical. Yes, many well known schools appear on the list, but that doesn't make it right. I still feel the Financial Aid Director- or whatever the title is- should be severly reprimanded, if not fired. It's called ethics. The corporation I work for would fire me in an instant for unethical behavior- and rightfully so. Education officials aren't immune to this. IMHO
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This student loan referring story has "scandal" written all over it. I did hear that 40 subpoenas went out today.
Let's hope that President Goldfarb holds the responsible person accountable for this fiasco.
What a mess! Whoever signed off on this needs to be held accountable.
One WESTERN. All Leathernecks !!
Go Leathernecks !!
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