FAP509: Expert interview with Mitch Joel, CNN coverage of student loan industry, Jonathan Coulton

Student Financial Aid News
+ From CNN: Cozy arrangements between colleges and the companies that lend their students billions of dollars are far more widespread than anticipated, New York Attorney General Andrew Cuomo told The Associated Press Tuesday, just as two more college financial aid officers were suspended amid a probe into the $85 billion industry.
+ Cuomo would not divulge where the burgeoning investigation is headed next, including whether more subpoenas are on the way. But he said the investigation could lead to criminal charges against high-ranking officials at both lending companies and universities.
+ On Tuesday, Widener University in Pennsylvania placed Walter Cathie, the dean of financial aid at Widener, on leave. Cuomo’s office said Cathie was paid $80,000 by Student Loan Xpress since 2005. Investigators said they believed Cathie had an agreement with the company to market its services to graduate schools, receiving fees based on loan volume.
+ Also on Tuesday, Capella University, a Minneapolis, Minnesota-based online school, said it suspended its director of financial aid after he acknowledged accepting consulting fees from Student Loan Xpress.
+ Financial aid director Timothy Lehmann was put on paid administrative leave after Cuomo’s office said he received more than $13,000 in fees from the company. Capella President Michael Offernan says Lehmann disclosed the payments last Friday.
+ The school is cooperating with Cuomo’s office and doing an internal investigation as well, Offernan said.
+ “No one is even defending the situation anymore,” he said.
+ Cuomo said he suspects “dozens” of financial aid officers around the country have similar arrangements that he has called deceptive, unethical and at times, illegal.
+ Last week, Cuomo sent subpoenas to SLM Corp., commonly known as Sallie Mae, requesting information on any current or former employees who had worked at the Education Department over the past six years.
+ From NASFAA: “Starting this fall, a scholarship created to boost Black student enrollment at Northeastern University will be open to White students, one of several policy changes the university has taken to avoid becoming the target of an anti-affirmative action lawsuit,” Diverse: Issues In Higher Education reports. “The Boston institution is not alone. Numerous schools nationwide have chosen to open their once racially targeted scholarships to White students in an effort to avoid equal protection lawsuits.”

Scholarship Update
+ Girls Going Places Entrepreneurship Award Program is Guardian’s annual initiative designed to reward the enterprising spirits of girls ages 12 to 18. Guardian awards prizes to 15 girls who demonstrate budding entrepreneurship; are taking the first steps toward financial independence; and make a difference in their school and communities. Prizes totaling $30,000 are awarded to three top winners and 12 finalists each year, to further their entrepreneurial pursuits.
+ A nominee must be age 12 to 18 as of December 31, 2006. Additionally, the nominee must be enrolled in middle school or high school as of December 31, 2006. Finally, the nominee must be a US legal resident.
+ 250 personal statement addressing your thoughts on entrepreneurship, business leadership, financial independence, or giving back to the community, typed on 8 1?2 x 11 paper. 750 word letter of recommendation endorsing you as an accomplished young entrepreneur, typed on 8 1?2 x 11 paper, written by an adult (age 18 years and over) who must be a US legal resident. One completed entry form/application signed by a parent/legal guardian and the nominator.
+ $30,000 total
+ Details at our free college scholarship search site

Expert Interview
+ Mitch Joel, President of Twist Image Marketing
+ How the financial aid industry can get back on its feet
+ How the Student Loan Network can be part of it

Podsafe Music
+ Jonathan Coulton, I Feel Fantastic
+ Music via the Podsafe Music Network
+ From Binary Star Records

Reminders
+ Private student loans
+ Stafford loans | Other federal student loans
+ Student loan consolidation at StudentLoanConsolidator.com
+ FAFSA tutorials and free help
+ Financial Aid Podcast Show Notes at FinancialAidNews.com.
+ The Financial Aid Podcast is a publication of the Student Loan Network.

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