Although it denies violating New York laws on student loan practices, Johns Hopkins University will donate more than $1 million nationally and locally to absolve itself in a national investigation.

In April, New York Attorney General Andrew Cuomo launched an investigation into student loan practices at Johns Hopkins University focusing on Ellen Frishberg, a director of financial aid for the university. The New York Attorney General’s office launched inquiries and investigations into several financial aid practices at schools and universities across the nation.

University officials learned from New York and lenders like Student Loan Xpress Inc., that Frishberg was paid consulting fees and tuition reimbursements from 2002 to 2006. The lenders were listed on lists recommended to students and parents. Frishberg was put on administrative leave on April 9 pending a university investigation. Frishberg resigned on May 18.

The Hopkins investigation found that the practices were a violation of its conflict of interest policies.

In response to the incident, the university removed a list of preferred lenders from its Web site and temporarily adopted a new code of conduct.

“Although it is clear that one university employee violated university policy in her relationships with student loan companies, Johns Hopkins as an institution has always stood for a financial aid program that meets the highest ethical standards,” President William Brody stated in a written statement.

Brody said the university reached an agreement with the New York Attorney General’s office to avoid costly and lengthy litigation.

Under the agreement, Hopkins will:

* formally adopt a new code of conduct proposed by the New York Attorney General’s office.
* donate $562,500 to the New York Attorney General Andrew Cuomo’s national fund for educating students and families about the financial aid process.
* donate $562,500 to a program under the Maryland Attorney General’s office to assist and benefit Maryland high school students and parents. This program is still pending approval by the Maryland Attorney General’s office.
* submit reports on student loan practices to the New York Attorney General and the Maryland Attorney General for review every five years.
* require additional training and certifications for its financial aid officers and staff. Require disclosure of anything of value financial aid officers and staff receive from student loan companies.

Information from: www.bizjournals.com

This entry was posted on Friday, June 15th, 2007 at 10:32 pm and is filed under Education, Student Loan. Tags: Financial Aid, Student, Student Loan. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.